A target market is a specific group of consumers at which a product, service, or marketing campaign is aimed. It is defined by demographic, geographic, psychographic, and behavioural characteristics, and it guides product design, pricing, promotion, and distribution.

Identifying a target market allows a business to focus its resources, tailor its messaging, and increase the efficiency of its marketing. A target market differs from a market segment in that it is the segment a company chooses to serve. For example, a luxury watch brand may target affluent professionals aged 35–60.

Key points

• Specific group a product is aimed at
• Defined by demographics, geography, and behaviour
• Guides marketing decisions
• Chosen from market segments