Is there a difference between target market and target audience?

You may have heard of the brand Gymshark, an online, British activewear company that has seen rising popularity in the United States. The company exists to unite the “conditioning” community and offers a range of products including apparel, gym accessories, equipment and a training app.

What originally started as a company out of a home garage in 2012, has now grown to cover 18 million social media followers and serves over 230 countries across its 14 online stores. Even with limited resources during its first operating years, Gymshark promoted its products and increased sales year after year. By 2016, just four years after launching, the company was named the UK's fastest-growing company.

By utilizing a digital strategy and defining their primary target market, Gymshark was able to permeate an already competitive industry. As the company continued to grow, it collaborated with influencers to ensure its marketing reached more defined target audiences.

As a business, trying to target everyone as a customer base won’t get you successful results. Having a clear understanding of your company’s target market and audiences will allow your company to develop a strategy that can help guide your sales and marketing teams to success.

Target market…target audience; aren’t they the same thing? Not quite. Although both terms involve dividing individuals into different segments, they differ based on your resulting marketing goal.

Let’s take a deeper dive

What is the target market?

Prior to launching your business, you probably asked yourself, “Who do I want to sell my product or service to?” and “Who can afford my product or service?” Initially, you were thinking about your target market.

A target market is a segmented group of individuals with shared characteristics that a company has identified as potential customers for its products or services. This group consists of customers whose needs and desires seem to align with your product or service. The target market can be categorized based on broad factors such as demographic (age, gender), geographic (countries, cities), psychographic (beliefs, values) and behavioral characteristics (brand loyalty, user frequency).

What is a target audience?

A target audience is a specific segmented group of customers pulled from your broader target market. Your audience will include some of the same individuals from your target market but with more defined characteristics. Essentially you are narrowing your focus. For example, if Gymshark’s target market includes individuals living in North America, their target audience may be more focused on individuals living in California, New York and Florida.

Identifying a target audience allows your business to create and launch focused marketing and advertising campaigns to specific segments of customers. These customized campaigns help enhance the customer experience and can make consumers feel more valued and appreciated.

Target audiences can also be used to focus on creating a new product or service that caters to that group’s needs.

Let’s look at the comparison chart for another example.

Target Market vs. Target Audience Example

Let’s say you're a shoe company based in Seattle, but you are looking to launch a few stores in California to coincide with your upcoming fall line release. As you gear up for your store openings, you also want to start a summer marketing campaign that promotes your new fall line and the launch of your new locations.

After conducting some research, you find that your sales are higher among individuals between the ages of 26-35 who make between $55,000-75,000. Instead of creating a broader campaign, your team recommends a campaign directed at specific audiences who live in and around San Diego, Los Angeles and San Francisco. You have essentially narrowed your target market to a specific niche or target audience.

When defining your target market and your target audience, you don't want to assume that you or your employees are prime representations of either group. Be sure to omit any preconceived notions, biases or assumptions about your targets and take the time to do some research. Determining the target market and audience allows for specific marketing strategies catered toward the consumers who are willing to buy your product. This will not only generate revenue but can also bring awareness to any potential underserved markets. In addition, defining your audiences can lead to efficient use of company resources when trying to reach the right customers.

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