To determine the target market is to select one or more sub-markets from the market segments as the target market based on the company’s own advantages, and to carry out marketing activities based on the characteristics of the target market, in order to meet customer needs and achieve the company’s business goals.
When determining the target market, the following three principles should be followed.
(1) The target market must be large enough or expanding to ensure that the company obtains sufficient economic benefits. This is because the number of consumers is one of the sources of corporate profits.
(2) The target market selected is one that competitors have not yet met, so it may belong to the company.
(3) The target consumers are most likely to respond positively to the value provided by the brand. However, if the target market selected by the company is large, but the consumers in the market are not interested in the company’s brand, it will still not be able to make a profit.