Topic > Characteristics of the reference market - 1121

1. Target Market According to the textbook Strategic Marketing Issues by Roger A. Kerin and Robert A. Peterson, a target market is defined as a specific group in which a company will focus its efforts in marketing its products or services. Before a company can proceed with production, the marketing manager must decide who will use his product? As we read in the text, the question that must be answered is "Where to compete?" This is a very vital part in marketing strategy. When it comes to target markets, it is important to know who the potential consumers might be. Defining demographics is important to be able to distinguish between primary, secondary and tertiary markets. As learned in previous marketing lessons with Dr. Haakon Brown, primary markets are usually where a marketing manager will decide to market their products. Even though a primary market may be the first choice, that doesn't mean it's the largest. As discussed in Consumer Behavior: Buying, Having, and Being, by Michael Solomon, the primary target market usually has certain key demographics that a company may be trying to market to. An example would be Harley Davidson because their main market is Caucasian men aged 35 and above as stated on the official investor website. Also two reasons are because it is cheaper to use the data already collected and it saves time. Since there are two types of secondary date; internal and external, there are more sources to choose from. For example, internal data that can be used are financial statements, budgets, and actual sales, while external data that can be used are company periodicals, trade association studies, and U.S. Census reports. One of the reasons why some prefer to use primary data is because the data would be more specific to the problem being solved