Target Market Identification – the method used to sort potential clients for sales and marketing campaigns,

advertising, and promotions using income, demographic, and lifestyle characteristics of a market and census
information.

Target Market – one which should be focused while making campaigns and strategies by a marketer to gain
maximum profits. This is the first factor to consider in designing market campaign.

Segmentation helps in identifying a target market.

Target Market – is a set of identified in customers to where a company capitalizes on (targets to sell its products
or services). This helps companies target people, to whom they will get maximum profit. This helps boost sales.

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished
from the products of the competitors.

Steps to Identify the Target Market

1. Consulting the business plan: Analyze the company goals and the product service being offered.
2. Research: Go for secondary research data
3. Developing customer profile: Customer profile is the detailed description of a typical potential customer,
including information regarding demography and psychography.
4. Finding the location of the target market: Helps in the proper delivery of the promotional message
5. Monitoring: Continuous research

The concept of market segmentation was coined by Wendell R. Smith (1955), in his article Product
Differentiation and Market Segmentation as Alternative marketing Strategies.

Bases of Market Segmentation

1. Gender
2. Age group
3. Income
a. High Income Group
b. Mid Income Group
c. Low Income Group
4. Place
5. Occupation
6. Usage
7. Lifestyle

Types of Market Segmentation

1. Demographic Segmentation - “categorical classification of target market”, i.e., masculine, feminine, age,
gender
a. Age and life-cycle segmentation
b. Gender segmentation
c. Income segmentation
d. Generation Segmentation
e. Social Class Segmentation
2. Geographic Segmentation – based on the location of target market, i.e., where is the target consumer
living?
3. Behavioral Segmentation – based on the customers’ attitude
a. Occasions
b. Benefits
c. User status – classifications as non-users, ex-users, potential users, first-time users, regular users
d. Usage rate – non-users, light, medium, and heavy product users
e. Loyalty Status – classification: 1. Loyal, 2. Split loyals, 3. Shifting loyals, 4. Switchers
f. Attitude – Attitude toward the product
4. Psychographic Segmentation – on the basis of personality, lifestyle, and attitude
Benefits of Market Segmentation

1. More Precise Definition of the market

2. Maximum Customer Satisfaction
3. Effective Marketing Strategy
4. Essence of Modern Marketing
5. Improved Profitability
6. Optimum Use of Productive Resources
7. Benefit of Specialization
8. High Competitiveness
9. Collection of Valuable Information
10. Identifying Market Opportunity
11. Benefits to Society and nation
12. Benefits to small scale industrial units

Marketing Mix – is a set of four decisions (Product, Price, Place, Promotion) that need to be taken before
launching a product.

2 Types of Marketing Mix

1. Product marketing Mix – Product, Price, Place, Promotion

2. Service Marketing Mix - Product, Price, Place, Promotion, People, Physical evidence, Process

Variables of Marketing Mix

1. Product
2. Pricing
3. Place
4. Promotions

Marketing Analysis – is study of dynamism of a market. The attractiveness of the market

Most common factor for Marketing Analysis: SWOT (Strengths, Weaknesses, Opportunities, Threats)

Dimensions of marketing Analysis

1. Market Size
2. Growth Rate of the Market
3. Market Trends
4. Market Profitability
5. Key Success Factors
a. Technology Progress
b. Economies of Scale
c. Efficient Utilization of resources
6. Distribution Channels
7. Industry Cost Structure

Importance of a Market analysis

1. Market Analysis Puts Your Customer First

2. Market Analysis Forces Companies to Look Inward
3. Market analysis Helps Determine your USP: in terms of
a. Brand – associating brand with a cause
b. Product – positioning the product as the finest/highest quality
c. Service – offering one-of-a-kind experience
d. Price – positioning as the most affordable
e. Audience – branding as to helping community