Target population refers to a group of individuals or customers that a business intends to cater to or serve with its products or services. This group shares similar characteristics, interests, behaviors, and needs that make them an ideal market for the business.
Identifying a target population is crucial for any business, as it helps in effective market segmentation and devising marketing strategies that resonate with the customers' preferences and behaviors. Knowing your target population allows you to create tailored products, pricing strategies, and communication channels that can increase customer satisfaction and loyalty.
To identify a target population, businesses often use demographic, psychographic, and geographic data. Demographic data includes age, gender, income level, education level, and occupation. Psychographic data focuses on personality traits, values, attitudes, interests, and hobbies. Geographic data includes location-based information like city, state/province/region, or country.
Market segmentation is the process of dividing a market into smaller groups based on similar consumer needs or characteristics. Whereas target population refers to the specific group within the market that a business intends to target its marketing efforts towards.
Demographics refer to statistical data related to human populations such as age range, gender distribution, income levels etc., thus making it an important factor while choosing a target population.
Psychographics focuses on understanding human behavior based on their interests , likes , dislikes , behaviours etc., thus playing an important role in narrowing down the market research for identifying the target population.
Geographics provides insights on location-based preferences of customers such as urban or rural areas thus helps in identifying the location wise needs and wants of customers for devising relevant marketing strategies
