A target market refers to a certain group of potential customers to whom a company wants to sell its services and/or products. This group often includes specific customers to whom the company directs its marketing efforts. The target market is not dissociated from the total market for a certain product or service.
In a particular target market, the consumers share similar characteristics including demographics, income, buying habits, and location. In order to prepare an effective marketing plan, it is essential for businesses to identify their target market. Having no knowledge of the respective target market can result in a significant amount of loss of both time and money.The target market for a product or service can be segmented on certain characteristics. So, before you learn about the different types of a target market, you need to know about different types of segmentation. The characteristics that help to identify the traditional market segments include:
Based on these individual characteristics, the target market is classified in the following types.
A company needs to target a specific market with the desired positioning in mind. It is important to acknowledge that all brands cannot have the no.1 spot. However, being in the top 5 brands in the market for a certain target market is not a bad position to aim for. Once the target market is identified, a brand should focus on positioning and deciding future strategy based on the needs of the target market.
The term “marketing mix” was first coined by E. Jerome McCarthy in 1960s. Since then it has been considered one of the fundamental elements of successful marketing efforts. The term refers to a particular set of actions or tactics that a company uses to promote its product or service in the market.
The 4Ps of marketing and the marketing mix are often used to express the same meaning. However, they are not the same thing. The 4Ps of marketing – product (or service), place, price, and promotion – help brands enhance the components of their marketing mix. Here are some questions that allow the brands to understand and define the 4Ps of marketing.
Product/Service:
Over the years, marketing experts have developed a number of marketing models. The 4Ps of marketing is just one of the many. However, when it comes to optimizing your marketing mix, the questions that are mentioned above are key to success.
The main object of evaluating a market segment is to identify one or more segments to enter. While selecting respective target markets, brands need to decide whether on a particular segment of the market or to serve the mass market. The choice a brand makes determines its marketing mix and positioning plank. Interestingly, businesses practice a number of strategies in today’s date to find their niche audience. However, most target marketing strategies revolve around these following tactics.
In certain cases, there may be no strong differences in consumer characteristics. In those situations, developing a separate marketing mix for different segments may cost more than the potential gains. In the absence of segmentation, brands need to develop a single marketing mix for the total market.
Companies with this strategy assume that individual customers have similar needs that can be met with a common marketing mix. This strategy actually reduces production and marketing costs. Marketing costs are also lower as only one product needs to be promoted.
Brands may be able to identify several potential target segments that can be served profitably. In such situations, the brands develop specific marketing mixes to cater to all or a few of those market segments.
The differentiated marketing strategy is considered to be the most sought after strategy as it has the potential to generate sales volume and high profits. However, it involves greater product design, production, inventory, promotion, marketing research, and higher management cost.
When a brand identifies several market segments but still chooses to serve only one (or a few), this strategy becomes quite useful. The brand generally targets just one segment with one marketing mix. It analyses the needs and motive of the segment's customers and develops a specialized marketing mix.
Some companies have witnessed that concentrating resources towards a narrowly defined market segment is more profitable. This is convenient for companies with limited resources. Interestingly, focused marketing allows R&D expenditure to be concentrated on meeting the needs of one set of customers.
In certain markets, the requirements of the customers are unique. Moreover, their purchasing power is sufficient to make separate marketing mixes for individual customers a viable option.
Brands using this strategy directly discuss their needs and design their services accordingly. Generally, there is a close relationship between the supplier and the customer.At times, having all the details about a topic might not be enough to deliver a remarkable assignment. Time constraints, lack of confidence, and fear of plagiarism – all these can stop you from preparing an assignment on a familiar topic. If you think you are not able to deliver an assignment on target marketing, the experts of MyAssignmenthelp.com have a solution for you.
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