Targeting Consumers

• Product Differentiation - where businesses make their product stand out from the competition to sell their product
• Factors which differentiate products:

  • Value
  • Social
  • Environmental
  • Convience
  • Service
• Target market - the group of customers to which a business intends to sell its product to
• Niche market - a small segment of the total market
• Secondary Target Market - alternative consumers in case there is a loss of consumers in the primary target market
• Primary Target Market - customers who are loyal to a business, make repeat purchases and will generate most of its revenue
• The purpose of market segmentation is that it aims to help increase business sales and profit by understanding and responding to the needs and wants of their target market.