Target Marketing

Target Marketing

 Target Marketing - Breaking a market into segments and then

concentrating your marketing efforts on one or a few key segments
consisting of the customers whose needs and desires most closely match
your product or service offerings.
  refers to a concept in marketing which helps the marketers to divide the
market into small units comprising of like minded people
Target Market

 A target market is the market a company wants to sell its products and
services to, and it includes a targeted set of customers for whom it directs
its marketing efforts. Identifying the target market is an essential step in the
development of a marketing plan.
Target Market Selection
 Target market represents a group of individuals who have similar needs,
perceptions and interests. They show inclination towards similar brands and
respond equally to market fluctuations.
Factors in selecting a Target Market :
Understand the lifestyle of the consumers
Age group of the individuals
Income of the consumers
Spending capacity of the consumers
Education and Profession of the people
Gender
Mentality and thought process of the consumers
Social Status
Kind of environment individuals are exposed to
Target Marketing: Generic Target Marketing
Strategies

 1. Undifferentiated marketing / Mass Marketing:

Mass marketing, also called undifferentiated marketing, involves marketing to
the entire market the same way. Mass marketing effectively ignores
segmentation and instead generates a single offer and marketing mix for
everyone. The market is treated as a homogeneous aggregate. Mass
marketing aims to reach the largest audience possible, and exposure to the
product is maximized. In theory, this would directly correlate with a larger
number of sales or buy-in to the product.
 Example : Toothpaste , Gasoline , and other widely consumed items.
Target Marketing: Generic Target
Marketing Strategies
 2. Differentiated marketing or multi-segment targeting:
A differentiated marketing strategy is one in which the company decides to
provide separate offerings to each different market segment that it targets. It is
also called multisegment marketing. Each segment is targeted in a particular
way, as the company provides unique benefits to different segments. 
 Example : Coca-cola , Diet Coke , Coke Zero.
 Example : Proctor and Gamble separate deodorant for men & women.
Target Marketing: Generic Target
Marketing Strategies
 3. Focus or concentrated targeting / Niche Marketing:
Niche marketing (also called concentrated marketing) is a strategy
that targets only one or a few very defined and specific segments of the
consumer population. The goal is to achieve high penetration among the
narrowly defined target segments.
 Example : Rolex watches has chosen to concentrate on only the luxury
segment of the watch market.
 Target Marketing: Generic Target
Marketing Strategies
 4. Customized marketing / Micromarketing:
Micromarketing is a targeting strategy that focuses even more narrowly than
niche marketing. It caters to the needs of individuals (“individual marketing”
 Example : Investment and Insurance products
 Target Marketing: Generic Target
Marketing Strategies
 5. Local marketing
Is a targeting strategy focused expressly on a small, clearly defined
neighborhood or geographic area. Organizations using this technique strive to
generate a strong local presence, and targets may include any person
or organization within that small area.
 Example: Farm products locally produced.
Steps :Defining and Reaching your target
market

 Step 1: Define your target market

The first step you need to take is to define your target market. Having a clear
profile of your target customers will help you weed out the ‘maybes’ and
‘Nevers’, and ensure that your marketing activities are targeted and cost-
effective.
 Demographics – who are they? What is their age, gender, profession and
income etc.
 Psychographics – How do they think? What are their interests, values,
attitudes, likes and dislikes etc?
 Behavioral – What do they do? How do they consume media? Is it online or
offline? What sites or publications?
Steps :Defining and Reaching your
target market
 Step 2: Reach your target market
You now need to give consideration to how you are going to reach your
target audience. Having spent time on profiling your target market, you should
find this step of the process much easier. To maximize your marketing
investment, you need to fish where the fish are!
Some simple examples – if your target audience are 25-35 year-old busy
professionals, think about social media and online platforms, as these are
mediums that this demographic actively engage with. Alternatively, if your
products or services are aimed at 55-65 year-olds who are largely retired, you
may want to opt for print publications that you know this demographic like to
read.
 Steps :Defining and Reaching your
target market
 Step 3: Identify what type of customers they are
Think about the type of customers you are trying to connect with. Are they
existing, new, lapsed or repertoire customers.

 Step 4: Tailor your marketing to your customers

When you really understand who you’re talking to, you can ensure that all your
communications are on-message and sent using the right channels and media.
Using the intelligence you have gained in the right way ensures that your
marketing budget has the most impact, and is much more likely to lead to high
value sales, and loyal, repeat customers
References :

 managementstudyguide.com
 yourarticlelibrary.com
 thebalancesmb.com
 investopedia.com
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