MARKET TARGETING OT TARGETING
MBA / BBA MARKETING MANAGEMENT QUESTION PAPER 2020 PUNE UNIVERSITY
Introduction
Target Market: It refers to that particular market in terms of
customer group which is selected or identified by marketers to tap it. All
marketing plans & strategies are made according to this target market to
generate revenue which will help firm to increase market share &
profitability
A target market is a group of customers within a business's
serviceable available market at which a business aims its marketing efforts and
resources. A target market is a subset of the total market for a product or
service.
Selecting the "right" target market is a complex and
difficult decision. However, a number of heuristics have been developed to
assist with making this decision.
Examples of target markets
Rolls-Royce (motor vehicles): wealthy individuals who are looking
for the ultimate in prestige and luxury
Dooney and Bourke handbags: teenage girls and young women under 35
years
Points to be considered
Segment overall attractiveness: In this step we analyze all
the opportunities available in the market which could be tapped by providing
appropriate product and the cultivation of profit. • Company’s objectives and
resources: Once the opportunity is identified in the market we need to match
the available resources with the firm which is required to exploit the
opportunity in desired manner.
Targeting in marketing is
a strategy that breaks a large market into smaller segments to
concentrate on a specific group of customers within that audience. ... Instead
of trying to reach an entire market, a brand uses target
marketing to put their energy into connecting with a specific, defined group
within that market.
Targeting is an advertising mechanism, that allows you to segment
some visitors, who meet a defined set of criteria, from the general audience.
It helps increase the effectivity of the campaign. Targeting is also used in
email marketing for segmentation.
Criteria for Targeting:
9 W’s• Who buys our product?• Who does not buy it?• What need
or function does it serve?• What are customers buying to satisfy the need for
which our product is targeted?• What price are they paying?• When is the
product purchased?• Where is it purchased?• Why is it purchased?
FACTORS CONSIDERED IMPORTANT
IN THE SELECTION OF TARGET MARKET STRATEGY•
1. Company’s Resources•
2. Product Homogeneity•
3. Product Stage in the Life Cycle•
4. Market Homogeneity•
5. Competitive Marketing Strategy
Evaluate the Market Segments
Selecting the Marketing Segments
Ø Single
Segment Concentration: Here company is having single product and focus is on
single market. It is applicable for those sellers which has small market and
limited demand in the market. e.g:Fish seller in village having single types of
fish and sell in one village only.
Ø Selective
Specialization: Here companies are dealing in multiple product and multiple
market but they select some specific market for specific product. e.g: Apple •
For Business class Laptop • For Music lovers ipod • For phone users
iPhones
Ø Product
Specialization : Here the firm specializes in marketing a certain product that
it sells to several market. e.g: Nokia Cheaper Price class Nokia 1100 Business
class Nokia E-Series Music lovers class Nokia X-Series
ØMarket
Specialization: Here firm concentrate on serving many needsof a particular
customer group or markets with focused strategy. eg: Johnson & Jonhson for
babies only • Powder • Soap • Shampoo etc
Ø Full
Marketing Coverage: Here firm serve all customer groups with multiple products
focused towards capturing all markets with variety of products in product
portfolio. e.g • Coca Cola • Kinley • Fanta Full market coverage approach can
be applied in 2 ways of Targeting •
Differentiated Market: It makes same strategy for all markets.
Undifferentiated Market: It means separate strategy for each
segment but cover all segments.
Additional points
while targeting market
(a)Ethical choice of market Targeting: It means customer
decision should be taken after considering what is right and what is wrong for
market or customers. We should be fair & honest in dealings with customers.
(b)Segment Interrelationship: All segments are interrelated and
integrated that’s why we should coordinate all segments to minimize the cost of
and utilize all available resources.
Targeting Strategies
(1) Undifferentiated /Standardization:-In Undifferentiated strategy
same product is offered to all market segments with common standardized
features without keeping any difference even in the presence of difference
among customers. Here marketers launch the product with same pricing,
distribution & promotion strategies applicable to all segments. e.g.- coke
& Pepsi
(2) Differentiation:-It is just opposite of above explained.
In this strategy firms differentiates its products for all segments according
the needs& wants of that segments. Due to presence of difference of taste
& preference, buying power etc. among consumers marketers alter its product
features & other related strategy in all segments to fulfill the different
needs of consumers. e.g:- Airlines • First Class • Business Class • Economy
Class
(3)Concentrated/Focused:- It is combination of both. Here the core
product and its strategies remains the same but differentiation is made to take
into account specific customers groups requirements. Here basic product is same
but minor differences are created to offer variety in same product line. e.g:-
Maruti • Zen Lxi • Zen Vxi • Zen Zxi
TARGET MARKETING - PROCESS
„ Target
marketing requires marketers to take 3 major steps:
1„ Identify
and profile distinct groups of buyers who differ in their needs and preferences
(market segmentation).
2„ Select
one or more market segments to enter (market targeting).
3„ For each
target segment, establish and communicate the key distinctive benefit(s) of the
company’s market offering (market positioning).
Selecting Target Market Segments –
Undifferentiated (mass) marketing – (A company’s attempt to appeal
to the whole market with a single basic marketing strategy intended to have a
mass appeal.) –
Differentiated (segmented) marketing – (a company’s attempt to
appeal to two or more well defined market segments with a marketing strategy
tailored to each segment) –
„ Mass
distribution.
„ Mass
promotion of one product for all buyers. Example Coke in 60 & 70s, „ Sold in India „One size
200 ml. T
TARGETING STRATEGY-
The selection of potential customers to whom a business wishes to
sell products or services. The targeting strategy involves segmenting the
market, choosing which segments of the market are appropriate, and determining
the products that will be offered in each segment
WHAT IS A TARGET AUDIENCE?
A target audience is a group of consumers within a predefined
target market that has been identified as the best recipients for a particular
marketing message. And a target market broadly describes B2C or B2B consumers
who care about your product or service and, under the right conditions, are
most likely to spend money with your company.
PROCESS
A THREE-STEP APPROACH TO DEFINING A TARGET AUDIENCE
1. Conduct target customer
research
Your business plan, content marketing strategy, professional
experience and prior knowledge of your target customers will lay the foundation
for your research. Compile all of your existing intelligence on your target
market, and look for opportunities to learn more about it. For example, you
might know that most of your customers are senior-level business people, but
you may not know if they all have the same job title, or if they all consume
content through the same channels.
To uncover key audience insights, use Google Analytics to drill
down into your site traffic and perform a deep audience analysis. Custom
audience reports can show you demographic and psychographic data, geographic
locations as well as the types of technology your site visitors use.
2. Analyze the market
Once you know a little more about your target customers and have
compared that data with your business goals, it’s time to get some context. Not
only are you attempting to place the right messages in front of the right
people at the right time, but you’re also competing with potentially thousands
of other messages.
Review your competitors’ marketing efforts and business plans to
better understand what you’re up against. Likewise, you’ll want to be aware of
any other campaigns your business is currently running, as you don’t want to
cannibalize your share of audience attention.
3. Define the audience
With hard data in tow and a thorough understanding of your
audience’s interests, challenges and needs, it’s time to create a concise
target audience to which you can direct your content marketing efforts.
ASK THESE
QUESTIONS AS YOU WORK TO DEFINE YOUR TARGET AUDIENCE:
What problems does your product or service solve?
Which demographic characteristics influence the decision-making
process?
Which psychographic traits impact content consumption?
How does your audience prefer to engage with brands similar to
yours?
Is your audience segment large enough?
No comments:
Post a Comment