Download Target Marketing - Ron R. Kelleher

Target Marketing
What is it?
A particular market segment at which a marketing campaign is focused.
Why is it Important?
The beauty of target marketing is that it makes the promotion, pricing and distribution of your products
and/or services easier and more cost-effective. Target marketing provides a focus to all of your marketing
activities.
Why is it Needed?
Selecting a target market segment for a product rather than attempting to sell to the entire market can be a
more efficient use of promotion dollars, because a greater market share can be achieved by capturing most or
all of a segment via a carefully directed marketing plan that reaches precisely the right people with the right
message than by trying to capture market share with a generic approach. It is also a better use of production
resources if they can be concentrated on a single product and/or package, thus experiencing economies of
scale.
Strategies for Reaching Target Markets
Marketers have outlined four basic strategies to satisfy target markets:
1.
2.
3.
4.
undifferentiated marketing or mass marketing,
differentiated marketing,
concentrated marketing, and
micromarketing (or niche).
Market Segmentation
Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on
one or a few key segments.
Target markets are groups of people separated by distinguishable and noticeable aspects. Target markets can
be separated into:
Type of Market Segment
Shared Group Characteristics
Demographic Segment
Measurable statistics such as age, income, occupation,
etc.
Psychographic Segment
Lifestyle preferences such as music lovers, city or
urban dwellers, etc.
Use-based Segment
Frequency of usage such as recreational drinking,
traveling, etc.
Benefit Segment
Desire to obtain the same product benefits such as
luxury, thriftiness, comfort from food, etc.
Geographic Segment
Location such as home address, business address, etc.