Target Markets (SQA National 5 Business Management): Revision Note

Selling the same product to a wide audience

It is focused on what’s common rather than different

Major brands like Coca-Cola and Walkers promote to a large target market through national TV adverts

Aiming products at a small, specific group of customers with specialised needs

German vegan shoe brand Ethletic focuses its products only on eco-conscious consumers

Offering different products or marketing campaigns for different market segments

Car company Ford manufactures small city cars, family SUVs, and electric models to meet the needs of different groups of customers

Targeting one specific segment and tailoring everything to that market

Luxury watchmaker Patek Philippe focuses its marketing on high-income professionals

Increased sales and customer loyalty

• Products and promotions that meet customer needs encourage repeat purchases and positive word-of-mouth

More efficient use of marketing spending

• Focusing on the most likely buyers avoids wasting money on advertising to people who have no interest in the product

Stronger brand identity and reputation

• A clear target market helps the business develop an image that customers recognise and trust

Better understanding of customer wants and trends

• Studying a specific market segment helps businesses respond quickly to changing tastes and develop new products

Wasted resources if marketing is aimed at the wrong audience

• Time and money spent on the wrong segment won’t generate sales and could reduce profit

Low sales due to misunderstanding customer needs

• If the product or promotion doesn’t appeal to customers, demand will fall even if the overall market is healthy

Damage to brand image if the product or advertising doesn’t appeal to the intended market

• Marketing that feels inappropriate or irrelevant can make customers lose trust in the brand, harming long-term success