Target Market – Explained

Cite this article as:"Target Market – Explained," in The Business Professor, updated July 18, 2014, last accessed May 30, 2020,

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Target Market 

The target market section of the marketing plan contains the following elements.

Customer Segments

  • Who are your primary customers?
  • Can they be grouped into a segment?
  • How much of the total company sales are they projected to occupy?
  • Who are your secondary segments? Characteristics? Percentage of sales?

Each Segment

  • Size – What is the size of each customer segment? (Give both the number of potential customers or market valuation.)
  • Priority – What is the priority level of the given segment?
    • How much effort is needed to sell to the given customer segment?
    • Is the product purchased regularly, on impulse, multiples at a time, etc.?
    • How aware of the product is the average customer?
    • Other factors that may affect purchasing habits:
      • Gifts, Seasonal buying, emotional considerations, obsolete status, price (discounts & sales), status, prestige, etc.
  • Description (Characteristics) – What are the like characteristics or preferences that make them capable of grouping and targeting with marketing efforts?
    • Types of Characteristic information:
      • Demographic information
      • Geographic Location
      • Psychographic Characteristics
      • Cultural or activity preferences
  • How the Product/Service Used – What is the type, frequency, intensity of use?
  • Value Proposition:
    • What need or want is the product meeting for this customer segment?
      • How does the customer perceive the product or service?
      • How does the product or service compare to the customer perceptions. (i.e., If perceived a reliable, is it reliable? High quality? Easy to use?
    • What is the value proposition that most appeals to the given customer segment? Examples:
      • Price
      • Convenience
      • Quality
      • Reliability
      • Customer Service
  • Requirements to Reach Each Segment
    • Each segment may have special characteristics that change the method that is most effective to reach it.
    • This may affect distribution channels as well as product features.
  • Sustainability
    • What is the expectation of durability of customer demand in this segment?  (E.g., Is the customer segment part of a trend?)
    • Include any market trend reports to support this.


  • What are the boundaries for the market(s) that your business can presently or intend to address?
  • Break down by customer group and/or geography.

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