Overseas Trade Marketing Plan 5: Target Market Factors

Target Market

A deep and broad knowledge of the product’s differentiation according to the expectations, needs, and purchasing patterns of the target market (the envisioned consumer demographic) is advantageous. Networks of dealers, distributors, and brokers provide a valuable resource of insight into markets and consumers. The target market’s appetite for the offering must be weighed against the ability of the market to pay the price required to cover costs and realize profits.

The fit between product and target market will be determinative of product success. However, comprehension of the target market – its purchasing power and proclivities – is a key element of the marketing plan. This element is likely to be more challenging when a foreign market is targeted – by their nature, domestic markets are familiar territory and risk will always be more readily discernible due to proximity and experience. Foreign markets, on the other hand, represent relatively unknown territory and uncertainty. In general, distance – geographic and/or psychic/cultural – correlates strongly with cost and complexity.