Target market


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Target market - Unitedworld School of Business

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Target market

  1. 1. Target Market Market:Market: people or institutions with sufficient purchasing power, authority, and willingness to buy A target market is a group of people toward whom a firm markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences.
  2. 2. Types of Markets: Consumer Markets:Consumer Markets: Goods or services purchased by an ultimate consumer for personal use. They sell the products to mass. Eg. Soft drinks, Cosmetics etc.
  3. 3. Business Markets:Business Markets: Goods or services purchased for use either directly or indirectly in the production of other goods and services for resale. E.g.. Heavy equipments, building etc.
  4. 4. Global markets: When the company expand their business and placed their products to international market. Non-profit and Governmental market: eg. NGO
  5. 5. The Role of Market Segmentation Market Segmentation:Market Segmentation: division of the total market into smaller, relatively homogeneous groups No single marketing mix can satisfy everyone. Therefore, separate marketing mixes should be used for different market segments.
  6. 6. Step 1. Market Segmentation Bases for Segmenting Consumer Markets Geographic Demographic Age, gender, family size and life cycle, or income Psychographic Social class, lifestyle, or personality Behavioural Occasions, benefits sought, user status, usage rate, loyalty Nations, states, regions or cities
  7. 7. The Market Segmentation Process Stage I: Identify Segmentation Process Stage II: Develop Relevant Profile Stage III: Forecast Market Potential Stage IV: Forecast Market Share Stage V: Select Specific Segment
  8. 8. Advantages of Segmentation: Increase in competitiveness Market expansion Customer retention  Have better communication
  9. 9. • Size, purchasing power, profiles of segments can be measured. • Segments can be effectively reached and served. • Segments are large or profitable enough to serve. MeasurableMeasurable AccessibleAccessible SubstantialSubstantial DifferentialDifferential ActionableActionable • Segments must respond differently to different marketing mix elements & programs. • Effective programs can be designed to attract and serve the segments. Requirements of effective market segmentation:
  10. 10. Steps in Segmentation, Targeting, and Positioning : 1. Identify Bases for Segmenting the Market 2. Develop Profiles of Resulting Segments 3. Develop Selection Criteria 4. Select Target Segment(s) 5. Develop Positioning for Each Target Segment 6. Develop Marketing Mix for Each Target Segment Market Positioning Market Targeting Market Segmentation
  11. 11. Levels of Market Segmentation: Mass Marketing Same product to all consumers (no segmentation) Mass Marketing Same product to all consumers (no segmentation) Segment Marketing Different products to one or more segments (some segmentation) Segment Marketing Different products to one or more segments (some segmentation) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Niche Marketing Different products to subgroups within segments (more segmentation) Niche Marketing Different products to subgroups within segments (more segmentation) Local Marketing Tailoring brands/ promotions to local customer groups Individual Marketing Tailoring products/ programs to individual customers
  12. 12. Step 1. Market Segmentation Bases for Segmenting Business Markets Bases for Segmenting Business Markets Bases for Segmenting Business Markets DemographicsPersonal Characteristics Situational Factors Operating Characteristics Purchasing Approaches
  13. 13. Segmenting Business Markets Segmentation by customer size or geographic location Four segments of business customers Programmed buyers Relationship buyers Transaction buyers Bargain hunters
  14. 14. Market Targeting Focusing marketing decisions on a very specific group of people an organization wants to reach. Identifying and developing products/ services for a specific market.
  15. 15. Evaluating Market Segments (developing selection criteria) Segment Size and Growth Analyze sales, growth rates and expected profitability for various segments. Segment Structural Attractiveness effects of: Competitors, Availability of Substitute Products and, Company Objectives and Resources Company skills & resources relative to the segment(s). Look for Competitive Advantages.
  16. 16. Strategies for Reaching Target Markets
  17. 17. Segment 1Segment 1 Segment 2Segment 2 Segment 3Segment 3 Segment 1Segment 1 Segment 2Segment 2 Segment 3Segment 3 Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 2 Company Marketing Mix 3 Company Marketing Mix 3 MarketMarket A. Undifferentiated Marketing B. Differentiated Marketing C. Concentrated Marketing
  18. 18. when a firm produces only one product or product line and promotes it to all customers with a single marketing mix Sometimes called mass marketing Much more common in the past Undifferentiated Marketing
  19. 19. when a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments Tends to raise costs Firms may be forced to practice differentiated marketing to remain competitive Differentiated Marketing
  20. 20. when a firm commits all of its marketing resources to serve a single market segment Attractive to small firms with limited resources and to firms offering highly specialized goods and services Concentrated Marketing
  21. 21. Step 2. Market Targeting Choosing a Market-Coverage Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies
  22. 22. Most attractive target markets A firm must evaluate the various segments ,decide how many &which ones to target: Single segment concentration. Selective specialization. Product specialization. Market specialization. Full market coverage.
  23. 23. POSITIONING  Positioning is the development of a service and a marketing mix to occupy a specific place in the minds of customers within target markets. Positioning is what the customer believes about your product’s value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence , rather than awareness created by advertising or promotion. Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy.
  25. 25. 1. Positioning by products attributes and benefits:  Associating a product with an attributes, a product feature or a consumer feature. Sometimes a product can be positioned in terms of two or more attributes simultaneously. The price and quality dimension is commonly used for positioning the products. Like, Colgate offers benefit of preventing cavity and fresh breath. Ariel offers a specific benefit of cleaning even the dirtiest of clothes because of the micro cleaning system in the product.
  26. 26. 2.Positioning by price/ quality: One way they do it is with ads that reflect the image of a high_ quality brand where cost, while n not irrelevant, is considered secondary to the quality benefits derived from using the brand. The Wheel detergent or Rin soap which always focuses on the value addition and price. 3.Positioning by use or application: Another way is to communicate a specific image or position for a brand is to associate it with a specific use or application. Surf Excel is positioned as stain remover ‘Surf Excel hai na!’
  27. 27. 4. Positioning by product class: Often the competition for a particular product comes from outside the product class. The product is positioned against others that, while not exactly the same, provide the same class of benefits. Dove is positioned as a moisturizer, not a soap. 5. Positioning by product user: Positioning a product by associating it with a particular user or group of users is yet another approach Motorola Mobile Ad , Facebook.
  28. 28. 6. Positioning by competitor: Competitors may be as important to positioning strategy as a firm’s own product or services. This approach is similar to positioning by product class, although in this case the competition is within the same product category. Moov compares itself with Iodex. 7.Positioning by cultural symbols: An additional positioning strategy where I the cultural symbols are used to differentiate the brands. Humara Bajaj, Tata Tea symbols has successfully differentiated the product it represents from competitors.
  29. 29. Steps to Choosing and Implementing a Positioning Strategy Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation. Step 2. Selecting the right competitive advantage. Step 3. Effectively communicating and delivering the chosen position to the market.
  30. 30. Campus Overview 907/A Uvarshad, Gandhinagar Highway, Ahmedabad – 382422. Ahmedabad Kolkata Infinity Benchmark, 10th Floor, Plot G1, Block EP & GP, Sector V, Salt-Lake, Kolkata – 700091. Mumbai Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.
  31. 31. Thank You