A target market is the set of customers sharing common needs and wants that a business decides to target.
Three Main Strategies for Targeting a Market
Mass marketing (undifferentiated): Business targets the whole market, ignoring segments. Products focus on the common needs and wants of customers, not focusing on edge cases.
Segmented (differentiated): Business targets several market segments within the same market. Products are designed and targeted at each segment. Requires separate marketing plans and often different business units and product portfolios.
Concentrated (niche): Business focuses narrowly on smaller segments or niches. Aim is to achieve a strong market position (share) within those niches.
Case Study: Gymshark
Target market:
Age: 18-25 Behavioural: often and how much
Income: higher levels of disposable income
Lifestyle: Lives revolve around fitness, music and fashion
Promotion:
- Influencers on social media
- Black Friday: 2 Big Sales