Define target market. Demographic analysis of target markets – who, size, reached, affordability.

Target market is the group of people that an organization wants to target and meet their needs. Organizations use various demographic factors to determine the target market of a certain product or service. These include age, gender and income levels, as well as location. This allows organizations to estimate the number of potential customers (e.g. the amount of people who might be interested) as well the accessibility (e.g. the best channels through which they can reach these clients). In addition, when evaluating target markets organizations should also look at affordability since it has a major impact on the purchase decisions of consumers. Companies can tailor products and services to better appeal to the target audience by accurately identifying it and considering all demographics that are relevant to this market.