Who would buy an SUV?The automobile market is saturated with cars of all segments and sports utility vehicles are just one category among them. Then, why are new models being released frequently? What new do they offer or why would a potential buyer decide one brand and not the other? These questions are answered by the sellers themselves while they address the necessity of their product in the market. Precisely for whom are they releasing the product into the market, what type of population will it attract the most and who will be willing to spend money to buy that particular item, essentially all of this sum up as the target customer of the business under consideration.
Differentiate between your target market, target customer and target audience
When a new item is destined for its inception, it is produced for a certain section of the general population having a set of specified features.You can take the examples mentioned as you for the following page.
A mid-segment SUV with additional accessories like space utilization, airbags for all seats, fluid brake system, movie player, GPS etc will target the customers who belong to the middle class but are in search of economical big-size models capable for traveling long distance with family. The middle-class families having the habit of traveling become the target market, the earning member is the target customer and the family members are the target audience.
A Bitcoin Trader program meant for use in generating bitcoins and altcoins eyes the individual cryptocoin collectors who want to make virtual money of their own, and may or may not trade them. These individuals will actually spend money to use the program and are the target customers, the traders, agents fall as target audience and all those who are involved in stock and cryptocurrency become the target market.
The target market is that section of the population, defined under certain range like income, age or geography which includes potential customers, most likely to buy the product. Target customers are the actual people who spend money and purchase the product from the market for himself and others. Target customers are defined by a group of dividable features like age, sex, know-how, income etc within the target market. The target audience consists of people who use the product, even if they do not monetarily get involved to purchase it, they are influential in determining the sale, but may not be the take the final decision of buying.