It is vitally important to understand this concept

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Furthermore, a target market generally includes the end users of a product or service.

This is why the famous consultant Peter F. Drucker said: “The goal of marketing is to know and understand the customer so completely that the product or service adapts to him and sells itself.”


In short, you need to create products, services and marketing campaigns for a specific and well-defined group of people.

What happens if you don't? At best, you'll sell subpar products or services that don't fully meet your customers' needs and wants. More likely, no one will buy them.

As author Philip Kotler once said, “There is only one winning strategy. It is to carefully define your target market and direct a superior offering toward that market.”

This target market can be segmented by aspects such as geography, demographics and psychographics.

Market segmentation: an example
McDonald's is the world's largest fast food brand, and is a denmark email list fantastic example of demographic-based marketing.

While McDonald's has grown to reach multiple markets and audiences, it has created dedicated products and marketing campaigns for each market segment.

For example, one of their main target markets is children. For this market, they provide play areas, happy meals complete with toys and marketing campaigns with Disney characters and Ronald McDonald.

Targeted marketing and competitive pricing have helped McDonald's consistently maintain the largest fast food market share in the United States.

But everything changes constantly.

In recent years, McDonald's sales have been declining, and the company has had to react to changes in its target market.

Let's try to understand what happened.

In 2016, millennials surpassed Baby Boomers to become the largest generation in the United States, and this avocado-obsessed generation is more interested in healthy foods than previous generations.