The key to any marketing initiative is understanding the difference between these two terms. Both terms identify potential individuals with interest in a product or service; however, these terms are not interchangeable. A market is an extensive set of individuals, and this could be an entire country, region or gender within a select age category. A target audience is generally much smaller and might consist of a few hundred individuals within a large market who have specific interests. For brands and companies who have a broad appeal and or high demand the target audience may be close in size to the entire market.
Identify A Market
Identifying a profitable target market is usually the first step before narrowing in on a target audience. There are a few main factors to be evaluated to find a market; including market size, growth potential, future profitability, number of competitors, and the general demographics of the population. The demographics of the market will reveal consumer demands, buying habits, income, and lifestyle. With these demographics, a company can begin forming sales initiatives, product pricing, advertising campaigns, and product packaging.