Defining a primary target market helps businesses focus sales and marketing efforts on the most attractive consumer group for their goods and services. Characteristics include high potential consumers who find the products desirable and can afford the retail price level. Niche markets can also become primary targets. Companies also identify secondary target markets for diversification.
A primary target market is the consumer market that a business wishes to enter and secure as the most attractive consumer group for its goods and services. Such a market may be attractive due to the large volume of consumers likely to generate significant demand for those products, or the market may be a prime target due to other factors, such as the purchasing power of that target group of consumers. Defining a primary target market helps focus sales and marketing efforts to get the best advantage and helps the business establish a presence within that market that can provide a steady stream of revenue for several years.
Characteristics of a primary target market generally include a high potential of those consumers who find the goods and services offered to be desirable and possibly necessary. In addition, those consumers must be able to afford the retail price level that the seller must generate to earn a fair amount of profit and stay in business. In order to determine how well a given group of consumers meets these basic criteria, companies will often invest resources in researching viable markets, ultimately identifying the one that offers the greatest potential to be the primary focus of marketers. efforts of that company.
While there is a perception that a primary target market must be large to be the primary focus of a company’s business efforts, that is not always the case. Many companies seek to identify what is known as a niche market. Markets of this type may be small and somewhat specialized, but they offer the benefit of having relatively little competition. This means that although potential sales volume may be limited, that niche market can become a primary target market if business owners believe they can displace enough of the current competitors serving the market and capture enough market share. to generate profit.
Typically, a primary target market is accompanied by various other secondary target markets that a company will also identify and seek to establish some form of presence within those consumer groups. This type of diversification allows you to focus on the main group of consumers who are likely to demand the goods and services offered, while at the same time entering other markets that will generate enough profits over time to sustain the effort. As consumer tastes and economic conditions change, one of those secondary markets may eventually show promise to become a primary target market, allowing the company to continue operating even after that previous target market begins to fade.
Smart Asset.
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