What Is The Target Marketing Concept?

Target marketing involves breaking down the entire market into various segments and planning marketing strategies accordingly for each segment to increase the market share . ... In order to attract a particular segment of the market, the company at times, modifies the product accordingly.

What is target marketing and explain the steps in target marketing?

The target marketing process provides the fundation for selecting the target market – a chosen segment of the market that an organization wishes to serve. It consists of the 3 step process of (1) segmentation, (2) targeting, and (3) positioning .

What is target marketing and its importance?

A target market is a group of consumers identified as likely purchasers of a company’s product . ... Choosing a target market is important because it enables the firm to direct its resources to those customers with high potential for sales growth, interest in the product and loyalty to the brand.

What is an example of target marketing?

A target market is the segment of consumers most likely to want or need a business’s products or services. This group of people is a subset of the business’s total market. ... For example, a children’s toy may have boys ages 9–11 as the target market and the boys’ parents as the target audience.

What are the 3 target market strategies?

The three activities of a successful targeting strategy that allows you to accomplish this are segmentation, targeting and positioning , typically referred to as STP.

What are the advantages of target marketing?

• provides an understanding of competition;
• gives insights into competitive advantage, and how this can be best applied;
• allows the company to better appreciate of what customers need;
• enables the company to produce more effective marketing plans;
• uses company resources more effectively.

Why is target marketing so important?

Targeting in marketing serves brands and consumers. It improves marketing strategies and audience experiences , builds brand awareness and loyalty, and even leads to better products and services. Plus, target marketing makes it easier for brands to reach audiences in an authentic, more meaningful and personal way.

What are the steps in target marketing?

1. Identify Your Customer Base.
2. Know Your Competition.
3. Review Products and Services.
4. Identify the Demographics of Potential Customers.
5. Target Potential Demographics.
6. Analyze the Psychographics.
7. Make a Decision.

What is the first step in the target marketing process?

The first step in the S-T-P process is market segmentation . In this phase of the planning process, the business identifies the market potential or the total available market (TAM). This is the total number of existing customers plus potential customers, and may also include important influencers.

How do you introduce a target market?

1. Look at your current customer base.
2. Check out your competition.
3. Analyze your product/service.
4. Choose specific demographics to target.
5. Consider the psychographics of your target.
6. Evaluate your decision.
7. Additional resources.

What are the four targeting strategies?

• Undifferentiated marketing:
• Differentiated marketing or multi-segment targeting:
• Focus or concentrated targeting:
• Customized marketing:

What types of customers are you targeting?

• 1 – Ideal Clients. ...
• 2 – Potentially Good Clients. ...
• 3 – Possible Clients. ...
• 4 – Not Targeted.

Who are possible target markets?

These include gender, age, income level, race, education, religion, marital status, and geographic location . Consumers with the same demographics tend to value the same products and services, which is why narrowing down the segments is one of the most important factors to determine target markets.

How do they choose a target marketing strategy?

1. Understand the lifestyle of the consumers.
2. Age group of the individuals.
3. Income of the consumers.
4. Spending capacity of the consumers.
5. Education and Profession of the people.
6. Gender.
7. Mentality and thought process of the consumers.

How do companies choose a target marketing strategy?

Look at the types of customers who are likely to purchase your products and use your services. Consider things such as age, gender, income level, marital status, occupation, educational level, gender and ethnic background. Identify which customer categories have the greatest need for your products.

How do you evaluate a target market?

1. Analyze your offerings. Ask yourself what problems your products and services solve, and, in turn, to whom they appeal. ...
2. Conduct market research. ...
3. Create customer profiles and market segments. ...
4. Assess the competition.