Example of Target Market Analysis
Target Marketing is the recognition that a mass market is comprised of separate groups whose demographic and psychographic profiles differ. A program to market to those segment would need to understand and capitalize on those differences and play them back to the targeted group.
The largest target market in marketing is one based on gender. Men and women differ in the products they need, what motivates them to purchase, and how advertising needs to be crafted to appeal to them. Men, for example, can be reached with messaging that uses sex, cars, or sports as themes. Women, on the other hand, are comparatively more astute as consumers and may require a more rational message for purchasing certain products such as a car.
Age, geography, income are all another market segmenting criteria based on demographics.
Demographic Market Analysis
The first place to consult when doing an analysis on a target group is the US Census. The government does a wonderful job of detailing information about all the groups that make up the US population. The government collects this information every 10 years, and then slices and dices the basic data to generate all sorts of reports related to nearly every aspect of consumer life from births and deaths to geography, to the size and projected growth of groups such as Blacks, Latinos, and Asians.
Depending on the nature of the specific business and the goals of the business for growth, defining one or more target consumer segments to market toward is an effective and efficient means of marketing. Goya Foods, for example, sells products mostly purchased by Latinos. Goya could use the information found in census data to determine the geographic location of most Latinos in the U.S. Goya might find out in the census data that Latinos have larger size families than the general population and when doing advertising for Goya beans might show a larger family gathered around the dinner table for example.
Using demographic data would help define paint a finer picture of who your target is that would be used in the development of promotional plans such as advertising.
Psychographic Market Analysis
Equally important to know when target marketing is the psychographic profile of your audience. What makes them tick? This important information, unfortunately, can rarely be found in a book which is why large companies conduct primary research to understand the motivations and behaviors of their target market so they can be exploited when marketing to them.
Goya Foods might uncover in focus group research that Latinos like it when an advertiser’s message to them is in the Spanish language as opposed to English. They might also find that the Spanish language is viewed as outmoded by some Latinos who prefer they be treated as Americans and have to advertise in English.
An analysis of demographic and psychographics will guide decisions of marketing but will not replace a marketer’s training in how best to reach and capitalize on the distinct ways of a target market group.