Target marketing

BY
SK MUNAF BASHA
ROSHINI KANUMILLI
FARHEEN SIDDIQUI
BHARAT

Philip Kotler, a marketing guru, defines a target

market as a well-defined set of customers whose
needs the organization plans to satisfy.

He suggests that the target market may be the

total focus of the organization or it may be
viewed as only a starting point for later expansion
to other market segments.

The point is, he recognizes that there are many

groups and you probably won't target them all.

Target marketing is the identification of attractive

market segments and tailoring the marketing mix
to match the needs of target customers.

This contrasts with mass marketing, whereby the

marketing mix is vaguely aimed at all customers.

A specific target market is a homogeneous group

of customers to whom an organization wishes to
appeal; it must be large enough to be profitable,
and its members must have sufficient disposable
income to spend on the goods, services, or ideas.

A target market is a group of customers towards which

a business has decided to aim its marketing efforts and
ultimately its merchandise.

A well-defined target market is the first element to a marketing

strategy.

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.

How Can This Help You

Succeed?

Products targeted at a specific segment are likely

more valuable to that segment

Promotions aimed at a segment convert at higher

rates

Results in better allocation of firm resources

Target markets are groups of individuals that are

separated by distinguishable and noticeable aspects.

Target markets can be separated by the following aspects:

segmentations - addresses (their location climate region)

Demographic/Socio-economic segmentation - (gender,

age, income, occupation, education, household size, 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)

Strategies for reaching target markets.

Marketers have outlined four basic strategies to satisfy target
markets:

Undifferentiated marketing or Mass marketing,

Differentiated marketing,

Concentrated marketing and

Micromarketing/ Niche marketing.

Mass marketing
A market coverage strategy in which a firm decides
to ignore market segment differences and go after
the whole market with one offer.

It is the type of marketing (or attempting to sell

through persuasion) of a product to a wide
audience.
The idea is to broadcast a message that will reach
the largest number of people possible. Traditionally
mass marketing has focused on radio, television and
newspapers as the medium used to reach this broad
audience.

Differentiated marketing
strategy

One where the company decides to provide

separate offerings to each different market
segment that it targets. It is also called multi
segment marketing and as is clearly seen that it
tries to appeal to multiple segments in the market.

Each segment is targeted uniquely as the

company provides unique benefits to different
segments. It increases the total sales but at the
expense of increase in the cost of INVESTING in
the business.

Concentrated marketing Or
Niche marketing
This approach focuses on selecting a particular
market niche on which marketing efforts are
targeted.

Your firm is focusing on a single segment so you can

concentrate on understanding the needs and wants
of that particular market intimately.
Small firms often benefit from this strategy as focusing
on one segment enables them to compete
effectively against larger firms.

Direct marketing
For sales teams, one way to reach out to target
markets is through direct marketing. This is done by
buying consumer database based on the defined
segmentation profiles.
These database usually comes with consumer
contacts (e.g., email, mobile no., home no., etc.).

The Psychology of target

marketing

A principal concept in target marketing is that those who are

targeted show a strong affinity or brand loyalty to that
particular brand. Target Marketing allows the marketer or sales
team to customize their message to the targeted group of
consumers in a focused manner.

Research has shown that racial similarity, role congruence,

labeling intensity of ethnic identification, shared knowledge
and ethnic salience all promote positive effects on the target
market.

Research has generally shown that target marketing

strategies are constructed from consumer inferences of
similarities between some aspects of the advertisement (e.g.,
source pictured, language used, lifestyle represented) and
characteristics of the consumer (e.g. reality or desire of having
the represented style).

Consumers are persuaded by the characteristics in the

advertisement and those of the consumer.

Targeting is to make a thing or group of things a target, to select it or them to

be acted upon.

Targeting (warfare), to select objects or installations to be attacked, taken, or

destroyed

Targeting (politics), to determine where to spend the resources of

time, MONEY, manpower and attention when campaigning for election

Targeted advertising, to select a demographic or other group of people

to advertise to, and create advertisements appropriately

Targeting pods, in warfare

Targeting tower, a radio frequency antenna

Behavioral targeting, in marketing

Gene targeting, in genetics

Geo targeting, in internet marketing

Geographic targeting, in geography

Inflation targeting, in economics

Protein targeting, in cell biology, is the mechanism by which a protein is

transported to its proper destination