target market – The section of customers that you hope will buy your product

(Pronounced tar-get mar-kit)

Note: A section of customers is also known as a segment.

To remember what target market means use the following mnemonic:

The target market (target market) attracts a specific section of customers who they hope will buy the products. 

A business must have a clearly defined target market whether they’re new or old. A company is a lot easier to run and is more likely to be successful if the management team have a clear image in their mind of what the customer looks like.

The second most important aspect of your target market is that it is big enough to make money. There is no point in targeting a market that’s not big enough to make a sufficient profit with a view to expand.