In the field of SMEs, the term "target market" refers to the ideal consumer group for a specific product or service. It may also be written as a similar term, referring to "target group" or " target audience." Generally speaking, it is defined as the specific demand segment to which a particular product is directed.

The purpose of defining lines of action and specifically defining the target market is to direct the campaigns launched by a company and strongly enhance its brand image. If you know exactly who you're selling your products to, you can create sales objectives in advance, conveying your message much more effectively. Furthermore, all of this will translate into reduced advertising costs, increased sales, and, consequently, much greater profits.

How to define your target market?

Your target market will be a group of people who fit a specific sociodemographic and socioeconomic profile, to whom you will target to offer a specific product or service.

Once this aspect is established, you can use qualitative variables to segment the market and target your offering and catalog based on their customs, habits, and values.

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Below are the key demographic variables that will help you define your target market:

• Age

• Sex

• Occupation

• Place of residence

• Profession

• Socioeconomic level

Additionally, it's also recommended that you use more qualitative variables, which will help you positively improve your business's profitability. Segmentation is crucial, and to achieve this, you can focus on the following user characteristics:

• Traditions

• Personality

• General and specific interests

• Values

• Hobbies and interests

• Lifestyle

• Purchasing behavior

To gain all this information, it's essential to conduct market research surveys to understand your audience's different perspectives. Regarding purchasing behavior, you can use your customer's past history to determine whether they buy out of necessity, on specific dates, or through promotions, for example.

Main advantages of defining your target market

There are many benefits to properly defining and delimiting your target market. Among the main ones are:

• Resource optimization . By choosing the right communication, distribution, and promotion media, you can effectively market your products.

• Market segmentation . Your target audience will be perfectly identified in terms of specific cultural and consumer characteristics.

• Product customization . You'll gain a much better understanding of the laws of supply and demand applied specifically to your business. This way, your marketing efforts can focus on meeting the specific needs of each segment.

• Generating new ideas . By having a clearer understanding of your target audience, you'll be able to create innovative product ideas, reducing existing risks and avoiding information gaps.

• Determining potential demand . Identify whether there's real demand for your products and what kind of people would be willing to initiate the purchasing process. Jumping into the deep end would be a big mistake.