ACKNOWLEDGEMENT

A project is the fruit of experiment and experience and it goes a long way to modeling a
person and gaining a new insight in that field of research.

In this rewarding experience, one recognizes the help and support rendered by kind
heart behind its success.

I would take this opportunity to thank all my teachers, especially Prof. …………………the
co-ordinator of Course name. I would like to thank Prof…………………….., my project
guide, who sincerely guided and supported me in doing the project. I would also like to
thank the Managers of Company name, who has given me the relevant information on
the topic

Definition
A target market is a group of customers (individuals, households or
organisations), for which an organisation designs, implements and maintains
a marketing mix suitable for the needs and preferences of that group.
Target marketing goes against the grain of mass marketing. It involves
identifying and selecting specific segments for special attention.[2] Targeting,
or the selection of a target market, is just one of the many decisions made
by marketers and business analysts during the segmentation process.
Examples of target markets used in practice include:

 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

INTRODUCTION
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.
The target market typically consists of consumers who exhibit similar
characteristics (such as age, location, income or lifestyle) and are
considered most likely to buy a business's market offerings or are likely to
be the most profitable segments for the business to service.
Once the target market(s) have been identified, the business will normally
tailor the marketing mix (4 Ps) with the needs and expectations of the target
in mind. This may involve carrying out additional consumer research in order
to gain deep insights into the typical consumer's motivations, purchasing
habits and media usage patterns.
The choice of a suitable target market is one of the final steps in the market
segmentation process. The choice of a target market relies heavily on the
marketer's judgement, after carrying out basic research to identify those
segments with the greatest potential for the business.
Occasionally a business may select more than one segment as the focus of
its activities, in which case, it would normally identify a primary target and
a secondary target. Primary target markets are those market segments to
which marketing efforts are primarily directed and where more of the
business's resources are allocated, while secondary markets are often
smaller segments or less vital to a product's success.
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.
ACKNOWLEDGEMENT

A project is the fruit of experiment and experience and it goes a long way to modeling
a person and gaining a new insight in that field of research.

In this rewarding experience, one recognizes the help and support rendered by kind
heart behind its success.

I would take this opportunity to thank all my teachers, especially Prof. …………………the
co-ordinator of Course name. I would like to thank Prof…………………….., my project
guide, who sincerely guided and supported me in doing the project. I would also like
to thank the Managers of Company name, who has given me the relevant information
on the topic
Definition
A target market is a group of customers (individuals, households or
organisations), for which an organisation designs, implements and
maintains a marketing mix suitable for the needs and preferences of that
group.
Target marketing goes against the grain of mass marketing. It involves
identifying and selecting specific segments for special
[2]
attention. Targeting, or the selection of a target market, is just one of the
many decisions made by marketers and business analysts during the
segmentation process.
Examples of target markets used in practice include:

 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

INTRODUCTION
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.
The target market typically consists of consumers who exhibit similar
characteristics (such as age, location, income or lifestyle) and are
considered most likely to buy a business's market offerings or are likely to
be the most profitable segments for the business to service.
Once the target market(s) have been identified, the business will normally
tailor the marketing mix (4 Ps) with the needs and expectations of the target
in mind. This may involve carrying out additional consumer research in
order to gain deep insights into the typical consumer's motivations,
purchasing habits and media usage patterns.
The choice of a suitable target market is one of the final steps in the market
segmentation process. The choice of a target market relies heavily on the
marketer's judgement, after carrying out basic research to identify those
segments with the greatest potential for the business.
Occasionally a business may select more than one segment as the focus
of its activities, in which case, it would normally identify a primary target and
a secondary target. Primary target markets are those market segments to
which marketing efforts are primarily directed and where more of the
business's resources are allocated, while secondary markets are often
smaller segments or less vital to a product's success.
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.
Who are you targeting?

Often when you ask a small business owner who they are targeting as
customers, their response is “Everyone”, or “Anybody interested in…” They
might refine this audience down to “homeowners” or “people who go to the
gym”. This is still too broad. The problem is with this is, not all consumers
think alike, and not everyone is going to purchase your product. Because of
this broad focus, marketing can miss the mark.

Instead of trying to market to everybody, targeted marketing makes your

product or service as attractive as possible to certain groups of people. Firms
focus their marketing efforts on a specific and defined audience.

This week’s topic explores targeted marketing and how businesses use
targeting to be more effective with their marketing and improve their ROI.

“Provided that sales in the target segment are higher than lost sales in the
non-target segment, the firm is undoubtedly better off financially.” (Cahill,
1997)
What Is Targeting?

Targeting focuses all marketing efforts on the defined group or groups of

people MOST LIKELY to become profitable customers. These groups of
customers will have common characteristics and interests and could be
based on existing customers, as there is likely to be similar people who you
will also benefit. The targeted customers might also be groups of people who
overlooked by the competition. If they are profitable, this then presents an
opportunity for that business.

The benefits of targeting

With targeting, marketing becomes more affordable, efficient and effective at

generating customer leads. Saving money on marketing and a better return
on investment are the most obvious benefits of targeted marketing —
especially for small businesses with frugal marketing budgets. Targeted
marketing is far more cost-effective than mass marketing as firms are not
wasting time and money marketing to people who will never be a customer.
Instead, the target audience is specific consumers who are most likely to
become customers.

“Firms can obtain significant benefits by targeting their promotions.”

(Narayanan & Manchanda, 2009)

If we understand who our most profitable customers are, we will know which
customers are not profitable, and we can also overlook them with our
marketing which is important with paid advertising (why waste your money!?)

Targeting should begin with the customers and the marketplace. Therefore,
it creates a strategic focus as the firm must take a realistic and well thought
out approach to their product or service offering, their marketing and their
customers. This integrated approach ensures everything is a good fit.
If you are not targeting specific groups of customers with your
communication, the message can become blurred. The broader the targeted
market is, the broader their preferences, needs and desires are. The more
focused your message is, the more receptive the target audience will be.

What is a Target Market?

Identifying their target market/s is a crucial step for any firm when developing
their strategic marketing plan. A target market is the group/s of customers
that a business focuses their marketing efforts on. The people they want as
their customers. It is a segment of the total market for a good or service. The
consumers who make up a target market share similar characteristics,
defined by demographics such as gender, location and age as well as criteria
based on their consumer behaviour.

“A target market is, at its most basic, simply the market or submarket (such
as a segment) at which the firm aims its marketing message(s).” (Cahill,
1997)

This target market determines other key factors for a product or service such
as distribution and pricing, or it can influence aspects of the product or
service itself. After identifying what group/s of customers you wish to target,
you must learn their values and consumption habits. This will help you
strategize how to communicate with them effectively and ensure your
offering best fits their requirements. If something is not right, firms can modify
aspects of the product or service itself, or its marketing such as the
packaging, pricing or even the brand name to help facilitate a more
successful result with their target market.

Target marketing sits alongside the positioning strategy. Positioning creates

an image of a brand’s product or service in the mind of a target customer. It
defines how the brand’s offering is unique and how it provides a distinct
benefit to customers. Marketing communicates a brand’s positioning to
consumers to influence their perception.

Your positioning must be attractive and credible to the people who require
your product and are most likely to purchase it.

“This identification of target customer groups is market segmentation, where

customers are aggregated into groups with similar requirements and buying
characteristics.” (Dibb & Simkin, 1991)
An orange segment — think of your target market as a segment

Segmentation: defining your target market

The strategy of using targeted marketing to reach specific groups or clusters

of customers is market segmentation. A firm can choose one or even
numerous segmented groups as their target market, divided up based on
their characteristics, based on their unique marketplace. As customers have
unique buying patterns to try and understand, this process helps to match
customer demands with a firm’s ability to satisfy them.

Firms can follow a range of different segmentation strategies such as

concentrating on a single segment with one product or brand, concentrating
on numerous segments with one brand or having many brands or products
each targeting a unique segment.

Market segments are specific and objective, comprised of people with similar
characteristics that are likely to respond similarly to a marketing campaign.
This helps businesses to optimise their branding, advertising and sales.

For example, a Gym might choose to market to fitness-minded people

between the ages of 15 and 40 in Hamilton, New Zealand. To make this
segment even more defined, they might choose to market to people with
strength and performance-based goals, attend the local university, and use
a lot of social media. The gym could further break down this market into
further niches, such as performance-based goals for sport, or powerlifting or
CrossFit, or bodybuilding.

Target market characteristics

The process of dividing a target market into segments uses three key
categorisation techniques. They are demographics, psychographics and
behavioural.

Demographics: Demographic segmentation aims to build an accurate

picture of who the target market “is” by using statistical characteristics of
human populations to identify these people. These include:

· Age

· Location

· Gender

· Occupation

· Ethnic background

Psychographics: Psychographics segmentation looks at consumers as

people (not customers), seeking to better understand the personal
characteristics on a human level. This includes their lifestyle, key values and
activities. These include:

· Personality

· Opinions, attitudes, and beliefs

· Values

· Interests/hobbies

· Lifestyles
Behavioural: Behavioural segmentation defines people based on their
actions and thoughts as a consumer. This helps marketers to further define
who they want to attract and who they do not want to attract. These include:

· Purchase Behaviour

· Customer Loyalty

· Occasion or timing

· Benefits sought

· Usage

Understanding the consumer behaviour of your target market

Brands need to understand what their target consumers believe are the most
important components of a product or service when they decide to purchase.
How will they use the product? What product features are most appealing to
them? Market research is a crucial step to get your positioning in the market
right.

Before releasing a new product, it is beneficial to test it with the target market.
Using focus groups are a fantastic way to test perceptions and the
performance of your offering with the types of people you want to purchase
it. This constructive feedback will allow you to make improvements before it
comes to the market. Analyse industry or talk to existing customers about
what they want from a product. This will all help answer important questions
you may have about your marketplace or target customers.

After the product is on the market, it is beneficial to monitor sales data or use
customer surveys and other actions that help monitor performance and
better understand customers and what they want. Measuring customer
satisfaction allows brands to continuously improve their offering.
“Each target market needs to be addressed in different ways in order for a
marketing campaign to be effective.” (Geraghty & Conway, 2016)

Communicating with your target market

It is important to market to your target market precisely, otherwise, you waste

precious time and money. Targeted advertising helps improve the efficiency
of matching brands with customers. To reach a target audience, marketers
must consider how and where to communicate to reach these people and
have them listen. Do they read the local paper every day? Are they browsing
Facebook? They might watch a lot of television. Once you have chosen
where to advertise, what marketing message will best resonate with them?
Marketing must match customers preferences and behaviours. You will only
learn this through trial and error or market research.

Traditional marketing communications include television, radio or film

advertising or product placements, sponsorship of events or live sport,
billboards, point of purchase placement, print advertising such as flyers,
business cards or newspaper and magazine adverts. Studies have indicated
that magazines have the longest life span of any traditional form of marketing
(See Blakeman, 2014). People can share magazines around with their
friends, or they are often left by businesses for customers to browse whilst
they wait, such as in the waiting room at the Doctors, at cafés or the local
fish and chips shop, and can be left for months or even years on end.

In-person events are the most successful form of lead generation for B2B
businesses (See Tomas, 2015), making networking events, conferences or
expos popular with salespeople. It is much easier to convert face-to-face
than it is with any other marketing technique, it is just very time consuming
and you do not have a massive potential audience as you do online. The
important thing to consider is, will your communication method reach your
target audience.
Advances in digital marketing

Innovations in technology and software over the past quarter of a century

has made it possible for any business to collect valuable data about
customers and potential customers. Digital marketing provides many
targeted marketing tools such as email marketing, blogging and search
engine marketing or optimisation and gives marketers a much higher
capacity for in-depth analysis of consumer behaviour than was possible
through traditional means of marketing. The growth and popularity of social
media have helped businesses to create highly customised and
personalised targeted advertising based on the behaviours we learn from
peoples’ habits online.