Market Targeting: Introduction, Definition, Procedure and Methods

Target Marketing is done after market segmentation, i.e. once the marketer has identified different segments within the market (read more about what is market segmentation) . After the segmentation, the marketer then devises various marketing strategies and promotional schemes which will suit the demand of the market. This is done keeping in mind the tastes of the individuals of particular segment. This process is called targeting. Organisation targets them, once market segments are created,Targeting is the second stage. There are three steps, and this includes segmentation, targeting and market positioning.

The marketers and various organisations use various marketing plans and schemes target their products amongst the various segments.

• The most apt example here would be of NOKIA as it offers handsets for almost all the segments. They very well understand their target audience. Also each of their handsets fulfils the needs and expectations of the target market and therefore Nokia is so popular.
• Another example would be of Chik Shampoo in India that started the sachet revolution. People of the lower income group could also afford to try the new products. It fulfilled an aspiration.

Target marketing is the art of marketing only to a desired target market. Therefore, it is also called as niche marketing whose main target involves two steps such as

1. Deciding your market segment
2. Designing your marketing mix

What are Target markets

Target markets are groups of which have a specific segmentation as given below:

• Geographic (their location or climate region)
• Product-related segmentation (relationship to a product)
• Psycho-graphic segmentation (similar attitudes, values, and lifestyles)
• Demographic segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle)
• Behavioural segmentation (occasions, degree of loyalty)

Strategies for reaching target markets

There are 4 basic strategies for reaching the target market:

• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing
• Niche marketing

Mass marketing (Undifferentiated Marketing)

This is a type of marketing strategy wherein a product is sold through persuasion to a wide audience. Here, it is decided by the business unit that they will ignore market segment differences and appeal to everyone with one offer. Their main aim is to reach the largest number of people possible. The media used by them are television,newspapers and the internet(information technology, social media etc). It involves incurring huge expenses.

Differentiated marketing strategy

It is also called multi-segment marketing wherein the company decides to provide separate offerings to each different market segment that it targets. The main focus here is to appeal to multiple segments in the market. Here the company provides unique benefits to different segments.

Concentrated marketing Or Niche marketing

This approach focuses on selecting a particular market so you can concentrate on understanding the needs and wants of that particular market. Here it is the niche on which marketing efforts are targeted. This is a useful strategy as it helps the firms to focus on one segment enabling them to compete effectively against larger firms.

Direct marketing

Direct marketing is one way to reach out to target markets for the marketers. Keeping track of customers profile is integral here and the databases usually come with consumer contacts. The contacts are in the form of email, mobile no., home no., etc.

Case study of Target marketing – Titan watches

Titan watches are the best example of target marketing because of the following reasons .

• Segment selection –Titan targets multiple segments. These segments are usually based on their income, social and behavioural attributes Therefore, it targets a variety of customers as in who have low incomes and also the customers with high income.
• Marketing mix –Titan has a new product for each segment and so it does not offer the same product to different customers. Example,a Sonata is for the low income group whereas a Tommy Hilfiger will be offered to the high purchasing power individual.
• Positioning – Each product of Titan is positioned in a way that when you walk in the store you will find that there are separate sections for each class of customers depending on their income groups.
• Customer life cycle marketing – Titan ensures that it has a product whether its customer is a college going individual, a working women or a high income professional.

So, titan is an excellent example when it comes to target marketing.

Read More:
Product Management Fundamentals Definition and Example
Theories on Motivation in Organizations and Management
Group Dynamics: Types, Formation of Groups and Group Cohesiveness

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