Posted in Marketing and Strategy Terms, Total Reads: 496
Definition: Target Population
Before the designing of a marketing strategy, the marketer has to find his intended audience so that the strategy will have its maximum impact. In order to do this, the marketer assigns certain attributes to the population. These characteristics include the purchasing power (money), decision-making power (authority), intention to make a purchase (desire) and their accessibility to the product (access). These attributes are called MADA and they are used by marketers to get an idea of the potential impact their offering can have in the market.
The people who want the benefits the product/service offering provides must be found and this is precisely what the target population intends to discover. Different audiences have different perceived benefits for the same product/service. For example, car buyers may look for different things in a car: mileage, comfort, and style/class. The customers can be segmented into the different classes based on these perceived benefits. Then, the advertiser can position the product differently in each market in order to achieve maximum effectiveness and advertising returns.
The target market is usually discovered by segmenting the population in terms of demographic statistics such as income, age, sex, education, household size,etc. Other means of characterising the target segment is by psychographics, in which the population is divides on the basis of similarity of attitudes, values and lifestyles. Segmentation can also be done on geographic, cultural and behavioural lines. The process of segmentation should be undertaken only if the segment is large enough to earn profit and it must be measurable. It must be stable and accessible through the company’s distribution channels.