Define target market. Demographic analysis of target markets – who, size, reached, affordability.

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Target market refers to a group of customers that an organization is trying to reach and serves. To identify the right market, companies look at demographics such as income, age, gender, and location. The analysis helps them determine how large the target market is (e.g. how many might be interested in the product or service) and how easily they can reach them (e.g. through what channels). As consumers make major purchase decisions based on the price of products and services, it is important that organizations consider affordability in assessing potential target markets. Companies can tailor products and services to better target markets by accurately identifying them, taking into consideration all demographic variables.

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