What does the term 'target market' refer to?

The term 'target market' specifically refers to a defined or specific group of consumers to whom a company aims its marketing efforts and products. This concept is essential in marketing because it allows businesses to focus their resources and strategies on the demographics and characteristics of the consumers most likely to purchase their products or services. By identifying and understanding their target market, companies can tailor their messaging, product development, and promotional activities to better meet the needs and preferences of that group, ultimately leading to more effective marketing and increased sales.

In contrast, a broad group of consumers refers to a wider audience that may not be as effectively targeted. The entire market for a product encompasses all potential customers, which is too vast for focused marketing campaigns. A group of competitors in a market is unrelated to the concept of a target market, as it pertains to other businesses rather than consumers.