Author Topic: Developing a target market statement  (Read 1642 times)

sally crocker

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Developing a target market statement
« on: February 15, 2016, 12:56:44 am »
How do marketers work to develop a target market statement?

When a company begins marketing, it first looks at the broad category of its consumers.

This would include anyone who the company believes purchases its product or service.

For some companies, this can be a very large group, for example, a company that sells paper towels will have a very broad market.

However, you cannot create a marketing plan for such a broad group of consumers and have it successful.

It is important for companies and organizations to develop their marketing plans based on specific groups within that broad market as the copy that is used, the imagery, the media, and the message will vary based on who is being targeted.

When we begin to break down the broad market that uses a product or service, we must first determine the key target market based on the goals and objectives of the marketing plan.

If we are selling paper towels and the goal of our marketing plan is to increase the sales of our adjustable-sized sheet rolls of paper towels, we would begin researching what group uses that type of paper towel the most.

If we found out that families preferred the adjustable-sized sheet rolls, we would then begin to build the target market based on that information.

First, we would want to identify the gender.

In a family situation, women make the majority of household product purchases, so we would possibly target women.

This gives us the first part of the target market statement—the gender.

Next, we want to know the age.

If we are targeting families, we will look at women who would be of an age that would have children at home.

We want to have a broad enough range such that we are able to include enough people; however, the range should not too broad that we cannot market efficiently.

We try to keep the age range to about a twenty-year span as when we increase that span we begin to enter different generations, which can impact media and message.

So for our paper towel plan example as above, we might target women between twenty-five and forty-five years of age.

This gives us our second part of the target market—age.

The next category would be marital status.

This impacts decision making within a family as well as household income (HHI).

Again for our paper towel target market, we are targeting families so we would indicate that the target market is married, giving us the next part of the target market—marital status.

We then look at education.

Education must align with age and greatly impacts income.

One of the greatest resources we have when reviewing education is the Census Bureau as we can quickly review the number of women in the age range we have determined that hold a degree and the type of degree.

For our target market, we would probably want to target High School Graduates Plus to ensure that we include all women who meet our age range and might use paper towels.

In more expensive products, you may choose only to target college graduates to ensure that they had the required income.

This gives us our fourth element in the target market statement—education.

Finally, we want to review household income.

Income impacts everything, from grocery purchases to vacation choices; so again it is important to be specific.

We never want to use terms such as “low income” or “affluent” as they are very subjective and can vary greatly based on who is defining the income as well as the geographic location.

“Affluent” in Ohio is very different from “affluent” in New York City.

We always want a specific income range, much like the age range, usually a range of no more than $25,000.

For our paper towel target example, we want to review the education of our target market since education impacts income.

The Census Bureau is again helpful in gathering information on income as we can gather information on married women who are in the range of 25–45 years and get an idea of the income for anyone who has at least a high school diploma.

For our paper towel example, we might want to use a HHI range of 28,000–54,000.

This will provide us our final element—income.

We bring each of these together for our target market statement.

Always include a gender and age range of no more than twenty years, marital status, education, and income range of no more than 25,000.

So  .... for our paper towel target market example, we are targeting:

Women, age ranging from twenty-five years to fifty-four years, married, high school graduate plus, HHI of 28,000–54,000.

See how it works?