Marketing: The Target Market

Although businesses focus on serving their customers wants and needs, No business can serve everyone. In fact, most successful business first try to determine their target market, or the customers that they can best serve with their product. To identify the target market, most businesses use market segmentation (a process of subdividing the market according to consumer needs and characteristics).
For instance, a marketer may segment a market according to the special needs of young families, high school students, or Hispanics in the southwest. Some organizations target individuals and others target businesses.
Once a company identifies its target market, its activities can be guided by the marketing concept. For instance, Walmart first began focusing on the needs of moderate-income families who live in southern and Midwestern rural areas. To meet the needs of these customers, Walmart offered:

• Convenient locations in easy to reach shopping locations off highways serving a local community and nearby towns;
• a number of departments for one-stop family shopping, such as clothing and accessories, household goods, electronics, and toys;
• everyday affordable prices;
• a liberal return policy; and
  
• the option to buy on credit.
  

This is an example of how marketers use the marketing process to serve the target market, and achieve optimum success creating a win-win experience for all parties involved.