A target market is a specific, defined segment of consumers that a company plans to serve with its products or services.

Identifying the target market is an essential step in the development of products, services, and the marketing efforts used to promote them.

Plus, a target market typically contains the end users of a product or service.

This is why famous consultant Peter F. Drucker said, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”

This is vital to understand.

To cut through the noise, you need to create products, services, and marketing campaigns for a specific, well-defined group of people.

Because if you don’t? At best, they’ll be bad products or services that don’t fully meet the needs and desires of your customers.

But more likely, no one will buy them.

As marketing author Philip Kotler once said, “There is only one winning strategy. It is to carefully define the target market and direct a superior offering to that target market.”

This target market can be segmented by things like geography, demographics, and psychographic.

Let’s look at an example.

Target Market Example

McDonald’s is the most valuable fast food brand in the world, and it’s a fantastic example of demographic target marketing.

Although McDonald’s has grown to target multiple markets and audiences, they’ve created dedicated products and marketing campaigns for each segment.

For example, one of their core target markets is young children. For this segment, they provide play areas, happy meals complete with toys, and marketing campaigns featuring Disney characters and Ronald McDonald.

Target marketing and aggressive pricing have helped McDonald’s consistently maintain the largest fast-food market share in the United States.

But everything is continually changing.

In recent years, McDonald’s sales have been in decline, and they’ve had to react to changes in their target market.

Let’s explore what happened.

In 2016, millennials surpassed Baby Boomers to become the largest generation in the U.S., and this avocado-obsessed generation cares more about healthy foods than previous generations.

Target Market Changes
In response to this change in their target market, McDonald’s updated their products and services.

This is why today, McDonald’s offers healthier, fresher menu options, and more upscale coffee products.

Next up:

What is a Target Audience?

Read more blogs 

How to Identify Your Target Market

Now that you understand exactly what target markets and target audiences are, let’s look at how you can uncover the market segments you should be targeting. Step 1: Identify the Key Benefit that Your Business Provides Get this right and your ideal target market should...

The Power of Targeting

Many people believe that casting a wide net is the best way to catch more fish. But the most successful fishermen know what type of fish they plan to catch ahead of time. They make nets with this specific size of fish in mind. And they know exactly where to find these...

The Key Differences Between Target Market and Target Audience

Target market and target audience are similar, overlapping terms. However, there are key differences between them, mostly related to the practical implications each has on your business. A target market impacts all decisions a small business makes. Products or...

What is a Target Audience?

The term “target audience” is narrower than “target market.” It refers specifically to the group of consumers targeted by marketing messaging. Advertising specialist Tom Duncan explains: A target audience is “a group that has significant potential to respond...

Why you desperately need a defined Target Market and Target Audience

Who is your target audience? What is your target market?  Why? If you don’t have incredibly specific answers to these questions, you could be in big trouble. What’s more, if you answered something like “we target everyone,” or “we cater to a wide range of people,”...

The top 5 most popular website questions answered.

We've received loads of questions about how we make websites. Here are a few of your questions - answered.   1. What do you use to make a website? We use WordPress. Why? Simply because the traditional way of designing websites takes about 10X longer. With...

Why do you need a Website?

 Think about how you look for things? You want to get a new car. Do you take a drive to the nearest dealership and walk around? Nope! You jump on the internet; start browsing for car brands; check out the pricing; see something you like and click the ‘book a test...

Black Friday – Are you ready?

What is Black Friday? Popularised in the US the Friday after thanksgiving masses of people would flock to malls and online stores to shop and purchase discounted goods. Businesses around the world noticed this hype and the increase of sales. Naturally businesses...

What is a website?

This post is defining a website. Getting the technical jargon out of the way for the future posts.

Answering Common Website Questions

This website blog series will answer all the questions you may have about websites. We will be focusing on: What is a website? Why do you need a website? How do they work? Who needs a website? When do you need a website? What do website cost? What website should you...