Target Market Matrix

The Target Market Matrix is a 2x2 matrix used to identify and prioritize target markets for a business. It helps to determine which markets are most profitable and which are most likely to succeed.

At a very high level, the Target Market Matrix is used in the context of business, marketing, finance.

Target Market Matrix quadrant descriptions, including examples
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What is the Target Market Matrix?

A visual explanation is shown in the image above. The Target Market Matrix can be described as a matrix with the following quadrants:

  1. High-Profit/High-Growth: Markets that are both profitable and have the potential for rapid growth. Example: Luxury cars.
  2. High-Profit/Low-Growth: Markets that are profitable but have limited potential for growth. Example: Grocery stores.
  3. Low-Profit/High-Growth: Markets that are not profitable but have the potential for rapid growth. Example: Social media.
  4. Low-Profit/Low-Growth: Markets that are neither profitable nor have potential for growth. Example: Pet rocks.

What is the purpose of the Target Market Matrix?

The Target Market Matrix is a 2x2 matrix used to identify and prioritize target markets for a business. It helps to determine which markets are most profitable and which are most likely to succeed. The four quadrants of the matrix represent four different market segments: high-profit/high-growth, high-profit/low-growth, low-profit/high-growth, and low-profit/low-growth.

The high-profit/high-growth quadrant is the most desirable, as it represents markets that are both profitable and have the potential for rapid growth. These markets should be targeted first. The high-profit/low-growth quadrant represents markets that are profitable but have limited potential for growth. These markets should be targeted second. The low-profit/high-growth quadrant represents markets that are not profitable but have the potential for rapid growth. These markets should be targeted third. The low-profit/low-growth quadrant represents markets that are neither profitable nor have potential for growth. These markets should be avoided.

The Target Market Matrix can be used to identify target markets for a business, prioritize those markets, and make decisions about which markets to target. For example, a company may decide to focus on the high-profit/high-growth markets first, followed by the high-profit/low-growth markets, and then the low-profit/high-growth markets. This can help the company focus its resources on the most profitable and successful markets.


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What templates are related to Target Market Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Target Market Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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