Target market selection

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The marketer develops a complete profile of the various segments found in the market, one or more is selected for a concerned marketing effort. This is known as market targeting.

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Target market selection

  1. 1. Marketing Target Market Selectionfrom HelpWithAssignment.com<br />www.HelpWithAssignment.com<br />
  2. 2. The marketer develops a complete profile of the various segments found in the market, one or more is selected for a concerned marketing effort. <br />This is known as market targeting. <br />Target Market Selection<br />www.HelpWithAssignment.com<br />
  3. 3. How to select potential target markets?<br />For effective targeting of market segments, segments must conform to the following criteria.<br />How to Select Target Markets?<br />www.HelpWithAssignment.com<br />
  4. 4. Identification: Markets segments should be of such a nature that it is easily identifiable. <br />Segmentation variables based on geographic or demographic information is easily identifiable, where psychographic information like lifestyle, activities and opinion is not that easy to identify. <br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  5. 5. Potential market must be worthwhile to marketers and therefore be big enough and sufficient. <br />Marketers can use demographic and geographic information to determine how large and profitable the target market is.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  6. 6. Stability: Marketers prefer target consumer segments that are relatively stable in terms of demographic and psychographic factors with customer needs that increase over time. <br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  7. 7. If this is not possible, the markets must at least be of such a nature that there will be early indicators of changes in the segment so that the marketing strategy can be adopted accordingly.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  8. 8. Accessibility: It is the final criteria in target market selection. This implies that the target market must be economically accessible. <br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  9. 9. Therefore, marketers must be able to reach the targeted market effectively at an affordable cost with the correct application of media such as radio, television, newspaper and magazines.<br />But before a target market is selected there are certain other criteria which must also be observed.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  10. 10. Size and Growth of the Target market: A target market need not necessarily be large. A small one can be more profitable than one in which a large sales volume can be realized.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  11. 11. Marketing management must be convinced that there are further growth possibilities and that investing in the target market under consideration does not have only a short-term dimension.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  12. 12. Attractiveness and potential profitability: The attractiveness of a target market lies not only in its size and growth possibilities but also in the promise of long-term profitability. <br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  13. 13. Attractive segments attract competitors and intense competition can have a detrimental effect on future profits. <br />Serious threats to attractive segments are aggressive competitors who can launch price wars or intense advertising campaigns or even develop new substitute products.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  14. 14. Resources and Skills of the organization: Promising segment opportunities that do not fit in with the long-term objectives set by management cannot be utilized. <br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  15. 15. The same applies when resources and skills to exploit the opportunity are lacking. <br />A segment can only be chosen as a target market if marketing management is fully committed to serving this target market better than any other competitor can.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  16. 16. Compatibility with the organization’s objectives: Apart from the resources and skills of the organization, the choice of a target market must also take into account compatibility with the objectives of the organization. <br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  17. 17. If it is found that the objectives of the organization cannot be fulfilled by the choice of a particular market segment, it should be disregarded.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
  18. 18. Cost of reaching the target market: When a potential target market is inaccessible to an organization’s marketing strategies or the cost to reach it is too high, it should not be considered.<br />Ways to identify Target Markets<br />www.HelpWithAssignment.com<br />
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