What is Target Market? The Difference between Target Market and Demographics

Target Market and Demographics

For small business owners, the idea of the target market is not news. But, a vague notion about target market won’t cut it in this day and age of fierce competition in the online business landscape. Scant knowledge or complete lack of it means you’ll be giving your competitors free reign over the market. And this means losing prospects to them or missing out on massive sales that could potentially take your business online to the next level. This column defines the target market and talks about the difference between target market and demographics.

  • Target market defined

The target market is a particular group of people with a known problem and is continually looking out for a solution. In other words, it’s a group of people with a specific problem that your business has the exact answer. They perfectly know that they have a problem and are scouring the internet to find the solution for it. Also, your target market can afford your solution, even the most expensive one. The definition can become complicated if you’re offering a wide variety of products and services with global outreach, which means you’re selling to everyone. That’s why you need to know the difference between target market and target demographic.

  • Disparity between a target market and a demographic

Most people use Target market and demographic interchangeably, but they are quite different. When you put target market and demographic side by side, you find that target market is much broader. The reason is that for most online businesses, their product and service offerings tend to appeal to a huge range of people. Aspects of product shelf life, buying cycles, and other factors that might not be influenced by individuals who may be interested in purchasing your products and services can impact the target market. Also, business owners take into account the strategic profit potential of any target market when formulating their models, as well as marketing strategies. This only means one thing: they look at the bigger picture when dealing with a target market.

On the flip side, demographics are individuals within a target market that have similar characteristics. Demographics are what make us who we are. For instance, my demographic is male, 30 years old, I like swimming, I love video games, I live in California, and my favorite food is pasta. So advertisers use these demographics to laser-target their marketing campaigns to specific individuals. Advertisers have to research their target market first to know their demographics to create advertisements that would attract their attention.


When it comes to the online space, advertisers use these demographics to place ads where their target market will browse strategically. In a nutshell, target market consists of age ranges and demographics. Demographics, on the other hand, include individual characteristics such as age, gender, race, and interests.


Additional Reading: Sell Cosmetics Online: The Benefits of This Line of Business