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Target Marketing

Target Marketing is one of the most prevalent marketing strategies that produce a good impact and result. It involves adopting specialized marketing strategies for a specified set of customers. Target Marketing features on dividing the whole range of customers into different segments and making efforts accordingly. It includes those customers to which the company wants to direct its marketing efforts. This strategy makes it easy for the company to know about the desires and requirements of the target set of customers. It is also impactful for those customers whose choices match the company’s product offerings and services.

What is the target market?

As the names suggest, the target market consists of those customers that are beneficial buyers for the company to increase business.  These are prime targets for the venture, and accordingly, they direct marketing efforts for the best results.

To make it simpler, no customer will buy all products. There are a particular set of customers for each product. Therefore, limiting marketing efforts and strategies to them will bring high profits.

Purpose of Target Marketing

The beauty of this marketing strategy lies in the fact that it involves customizing efforts. The other benefits are as follows:

  • It makes pricing, production, and distribution of services better.
  • It lets conceptualization of products, understanding the needs and requirement of customers becomes easy.
  • It is cost-effective and also focuses on all marketing activities.
  • It is a way to attract new sales, businesses, and an increasing number of shares.
  • It is time-saving and can make use of innovative marketing ideas.

Steps to define the target market for Target Marketing

Now since Target Marketing is not an easy thing to adopt, it involves following several steps, which are as follows:

First of all, it becomes necessary to understand the liking of each set of customers.

Then, identify those customers who are interested in your products.

Adopt marketing efforts for the specified set of customers.

Other than this, there are two significant facts which the company should take into notice before deciding to capture market segments. First is the appropriateness of the set of the customers so that it offers a high business margin and less competition. Secondly, it should be adjustable to the company’s goal and vision.

Before choosing Target Marketing as marketing strategy, one should know the market, level of competition, product pricing, etc. It will help to create a new benchmark.

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Ways of market segmentation for Target Marketing

There are different ways to approach market segmentation in Target Marketing that depends on what methods you want to adopt. But among the best segmentations are demographic segmentation, geometric segmentation, and psychographic segmentation.

Demographic Segmentation

This grouping involves the use of a method that depends on:

  • Age
  • Gender
  • Income
  • Marital status
  • Education
  • Religion
  • Race

It is among the most important market segmentation strategies for identifying target markets. For example, the sales of beard-related products. This is a product that cannot be used by children less than 16.

Therefore, the age of the customer will be a deciding factor.

Geographic Segmentation

This method of segmentation involves the division of the market as per the location. Depending on the address of the business, one should check and gather the list of customers in nearby areas. It can use:

  • Neighborhood
  • Postal or Zipcode
  • State
  • City
  • Region
  • Country

It relies on the fact that the group of customers within the same geographical area tend to show interest in the services and products of the company. If we consider a business of local cab providing service then it will be restricted to local areas and customers. Therefore, for increased earning, one should try to keep the report of nearby customers.

Psychogeography Segmentation

Now, this is a tricky segmentation, but it is quite interesting to achieve. It is completely dependent on socioeconomic class, lifestyle, preferences, etc.  It is a socioeconomic segmentation that has highly educated people at the top, whereas the uneducated at the bottom.

This study involves classification according to values, beliefs, preferences, interests, etc. We can consider an example of clothing. There are different people with different clothing choices.

Platforms like Facebook, LinkedIn, and Instagram have become a better choice to know about the references and beliefs of the people. Moreover, it also talks about the age and locality of customers. Target Marketing is a boon. It is a key to bring revolution in the business.

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