A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately

its merchandise.[1] A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace. Once these distinct customers have been defined, a marketing mix strategy of product, distribution, promotion and price can be built by the business to satisfy the target market. Target markets are groups of people separated by distinguishable and noticeable aspects. Target markets can be separated into: geographic segmentations, addresses (their location) demographic/socio-economic segmentation (gender,age, income occupation, education, sex, household size, age, and stage in the family life cycle) psychographic segmentation (similar attitudes, values, and lifestyles) behavioral segmentation (occasions, degree of loyalty) product-related segmentation (relationship to a product)[2] Industrial market segmentation is a scheme for categorizing industrial and business customers to guide strategic and tactical decision-making, especially in sales and marketing. While government agencies and industry associations use standardized segmentation schemes for statistical surveys, most businesses create their own segmentation scheme to meet their particular needs. While similar to consumer market segmentation, segmenting industrial markets is different and more challenging because of greater complexity in buying processes, buying criteria, and the complexity of industrial products and services themselves. Further complications include role of financing, contracting, and complementary products/services. The goal for every industrial market segmentation scheme is to identify the most significant differences among current and potential customers that will influence their purchase decisions or buying behavior, while keeping the scheme as simple as possible (Occam's Razor). This will allow the industrial marketer to differentiate their prices, programs, or solutions for maximum competitive advantage.