Target Marketing
By Rupal Jain
According to Wikipedia,
“Market Specialization is a business term meaning the market segment
to which a particular good or service is marketed. It is mainly
defined by age, gender, geography, socio-economic grouping, or any
other combination of demographics.
It is generally studied and mapped by the organization through list and reports containing demographic information that may have an effect on the marketing of key products / services.
A product focusing on a specific target
market contrasts sharply with one, following the market strategy of
mass marketing”.
There are three targeting strategies an organization can adopt:-
1. Undifferentiated Marketing: - It is a standardization
strategy option, where the firm offers the same product, uses the same
advertising, promotional, distribution, publicity, public relations
and pricing strategies to different market segment. E.g.: - Pepsi and
Coca-Cola.
2. Differentiated Marketing Strategy: -
It contradicts the Undifferentiated Marketing Strategy where
the firm develops different products / services to suit the need of
varying groups which increases their marketing and operational
expenditures. E.g.: - Airline Industry.
3. Concentrated Marketing: - This
is a “focused” approach of the firm to target only one particular
segment and create a niche market of that particular segment. In other
words instead of targeting a small share of a large group, the company
aims at a large share of a small group.
Targeting can be done by the firms by adopting a logical and
systematic methodology / steps. Which are as follows: -
STEP 1: - Identify the potential buyers:
- Through proper market research and market segmentation (it is
the process of pulling apart the entire market as a whole and
separating it into manageable disparate units based on various
demographic, political, economic and social factors; it can also be
customer / product / competition related segmentation).
After the process of Segmentation the
next step is for the organization to decide how it is going to target
these particular group(s).
STEP 2: - Select the target audiences: -
The factors that influence Targeting are the Internal and External
Environment. Internal environment includes the mission, vision, values
and objectives of the firm; whereas; External factors are the social,
cultural, economic, global, demographic, natural, task, technological,
political and legal environment.
Through appropriately compiling the
customers profile to decide the 4 P’s – Product, Price, Place and
Promotion and obtain the demographic, psychological, geographic and
behavioral information of the buyer. Targeting is deciding the
potential buyers, products to be offered and appropriately positioning
each product to the segment.
STEP 3: - Proper positioning of the Product:
- After developing an appropriate segmentation and target
strategy; positioning strategy can be worked out effectively.
Positioning enables the firm to create a positive image, gain
competitive advantage and place the brand in the customers mind to
enhance their goodwill and become the most preferred brand.
Positioning can be in the form of
product, price, promotion, service, distribution channel, image,
people, advertising, publicity, public relation or selling
differentiation.
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