Answer to Question #315174 in Marketing for amelia

Question

Some companies market their products without first identifying their target. After several months of operation, they profile their customers and classify them geographically, demographically and psycho-graphically. The most recurring profile of customers is identified as the "target market" is this workable? Explain briefly.

Answer 1

No, For your startup company to be successful, you need to identify your target market. Identifying the target market is an essential part of a product development plan, along with manufacturing, distribution, price, and promotion planning. The target market determines significant factors about the product itself. Organizations don't have the time or resources to be able to reach everyone with a product message. Identifying a target market allows marketers to focus on those most likely to purchase the product. Limiting the population funnels research and budgets to the customers with the highest profit potential.