Define a target market by identifying the group of people or organizations most likely to need, value, purchase, and remain profitable customers for what the business offers. The definition should be specific enough to guide decisions but broad enough to represent a viable market.
Useful inputs can include customer data, sales history, profitability, demographics, geography, company size, industry, job roles, behaviors, needs, buying triggers, challenges, and customer lifetime value. Interviews and research can reveal why strong customers choose the company and what alternatives they considered.
The target market can then be divided into meaningful segments and personas when different groups have distinct needs or buying journeys. Those distinctions should influence positioning, messaging, content, channels, and offers.
Target-market definition is a foundational part of marketing strategy. It prevents organizations from trying to market to everyone and helps concentrate resources on audiences with the greatest strategic value.
