Target markets are vital to the success of any business. By identifying the core demographic you can create effective campaigns that are catered specifically to them, allowing you to maximize the return of your marketing dollars. Indentifying a target market requires companies to combine information from a variety of sources, including market research, industry and other reports, and surveys.

Once identified, the target market should inform all aspects of a company's product offering, including the design and packaging of the product, the channels through which it is sold, and even the types of promotions and pricing strategies that the company chooses to employ.

For example, a clothing retailer might identify teenagers as its target market and focus on trendy designs and sales promotions specifically aimed at that demographic. This kind of laser-focused approach to marketing allows companies to target their message, as well as their product, and better engage with their true customers.

The process of identifying a target market is not always easy and companies need to remember that it is an ever-changing one. Companies should constantly monitor their target market to identify new opportunities or potential shifts that could lead to the creation of a new target market altogether. With the correct target market research and an open mind, businesses can ensure that new products are developed and marketed efficiently and effectively.