2. Target Market
• A target market is a
specific group of
customers that you
have identified as
your main market.
• Typically this group
is defined by
demographics and
psychographics.
4. Mass Marketing
• Mass marketing is a
market coverage
strategy in which a
firm decides to
ignore market
segment differences
and go after the
whole market with
one offer.
5. Differentiated Marketing
• A differentiated
marketing strategy
is one where the
company provides
separate offerings
to each different
market segment
that it targets.
6. Concentrated Marketing
• Concentrated
marketing is a
strategy which
targets very defined
and specific
segments of the
consumer
population. It is
particularly effective
for small companies
with limited
resources.
7. Demographics
• Age •Income
• Gender •Education
• Race •Marital Status
• •Occupation
Location
9. Profile Your Existing Clients
• Demographics
• Psychographics
Profile Your Products &
Services
• What demographics are your products or
services designed for?
• What lifestyles are your products or services
designed for?
10. Profile Your Community
• Demographics
• Psychographics
Profile The Target Market of
Your Competition
• Demographics
• Psychographics
11. Defining Your Target Market
• Our target market for our [product or
service] is [women / men / individuals /
companies] who are [demographics] and
who need/want to [psychographics].
12. Questions To Ask
• Are there enough people
within my target market to
support my business?
• Can they afford my products
or service?
• How many competitors serve
my target market?
• How will I reach my target
market?
• What drives my target market
to make purchasing
decisions?
13. Join Us Next Time
Transforming Your Business
March 2013
Engagement Marketing
To register: http://thetransformationaljourney.com/march-2013/
Date: March 13, 2013
Time: 11:30 a.m.-1:00 p.m. Mountain Time
• During this tele-session you will discover how you can use engagement
marketing strategies as a way to develop your client relationships, establish
new connections with prospective new customers and ultimately increase
sales.
Editor's Notes
Targeting a specific market does not mean that you have to exclude people that do not fit your criteria from buying from you. Rather, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.
Mass Marketing Differentiated Marketing Concentrated Marketing
Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy.[1] It is the type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience. By reaching the largest audience possible exposure to the product is maximized. In theory this would directly correlate with a larger number of sales or buy in to the product. Mass marketing is the opposite to Niche marketing as it focuses on high sales and low prices. Mass Marketing aims to provide products and services that will appeal to the whole market. Niche marketing targets a very specific segment of market for example specialized services or goods with few or no competitors.[2] Wide audience - Since the target audience is broad, the number of successful hits is high despite of the low probability of a single person turning up. Less risky - If all the efforts in one particular area goes in vain, still the eventual loss is less compared to a loss in the narrowly focused area. Production cost per unit are low on account of having one production run for homogeneous product. Marketing research cost and advertising cost are relatively low.[5] Higher potentials of sales volume and efficiency of scale in a much larger market.[6]
The Oreo cookie is a popular cookie in the U.S., known for its two discs of chocolate with a white cream filling. The Double Stuff Oreo cookie is also marketed to U.S. consumers. However, Kraft has formulated a different version of the Oreo to target consumers in China. The Chinese version consists of four layers of long, thin biscuits coated in chocolate. Kraft CEO, Irene Rosenberg, trusts her executives who live and work in China to know what consumers would prefer in order to maximize their profits. In Germany, Kraft is appealing to the tastes and preferences of German consumers by creating dark chocolate products. It is also introducing premium instant coffee in Russia, which is a beverage that is popular to consumers. Everyone knows what an Oreo cookie is supposed to be like. It's round, black and white, and intensely sweet. Has been for 100 years. But sometimes, in order to succeed in the world, even the most iconic product has to adapt. In China, that meant totally reconsidering what gives an Oreo its Oreoness. At first, though, Kraft Foods thought that the Chinese would love the Oreo. Who doesn't? The company launched the product there in 1996 as a clone of the American version. Lorna Davis, who is in charge of the global biscuit division at Kraft, says the Oreo did OK. But it wasn't a hit. It was almost pulled out of China. But before the cookie was declared a failure, Kraft thought that maybe a little research was in order. And so a decade after it was introduced, Kraft finally asked the right question of Chinese consumers. A question unthinkable in the United States: What's the problem with an Oreo cookie? The answer was surprising. Chinese consumers liked the contrast between the bitter cookie and the sugary cream, but, "they said it was a little bit too sweet and a little bit too bitter," Davis explained. It turns out that if you didn't grow up with Oreos and develop an emotional attachment to the cookie, it can be a weird-tasting little thing. And this started a whole process in the Chinese division of Kraft of rethinking what the essence of an Oreo really is. Kraft changed the recipe and made the cookie more chocolatey. The cream less cloying. "So they said this is a better balance," Davis said. And it started to sell. But once the Kraft team began to tinker with the classic features of an Oreo, why not go all the way? They started to ask other provocative questions. Why does an Oreo have to be black and white? Davis sent us an Oreo with green tea filling. Another had a bright orange center divided between mango and orange flavor. And why should an Oreo be round? They developed Oreos shaped like straws. In China, you can buy a long rectangular Oreo wafer, the length of your index finger. Impossible to twist apart, but Davis points out that it makes it easier to dunk in milk. It almost became a philosophical question. If an Oreo isn't round and black and white and crazy sweet, is it still an Oreo? What is the essence of Oreoness? What the Chinese team at Kraft figured out is that an Oreo is an experience. You pry it apart, scrape out the filling with your teeth and plop it into a glass of milk. Their shorthand for the concept: "Twist, Lick, Dunk." All the wild new shapes and flavors of Oreo wouldn't work in China, unless they could somehow share that same experience. "In the early days people said there's no way that Chinese would twist, lick, and dunk because that's a strangely American habit," says Davis. But luckily for the Oreo team, the Chinese consumer was just starting to respond to emotional advertising. Oreo launched a series of TV ads where cute children demonstrate to their parents and other adults how to eat an Oreo cookie in the American style. Davis says they saw sales of Oreos double in China, then double again, and again. Its now the best-selling cookie in China. But more important, Davis says they learned a lesson about global business. "Any foreign company that comes to China and says, 'There's 1 1/2 billion people here, goody goody, and I only need 1 percent of that' ... [is] going to get into trouble. You have to understand how the consumer operates at a really detailed level." Sometimes the results surprise you. That rectangular wafer Oreo is no longer just in China. You can buy it in Canada and Australia. By the time the Oreo finishes its world travels and come back home, Americans might not recognize it.
How to Define Your Target Market: Choose Specific Demographics to Target Figure out not only who has a need for your product or service, but also who is most likely to buy it. Think about the following factors: • Age • Location
Psychographics are more personal characteristics of a person, including: • Personality • Attitudes • Values • Interests/hobbies • Lifestyles • BehaviorAttitudes & Values
Profile Your Existing Clients Who are your current customers, and why do they buy from you? Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product/service. How to Define Your Target Market: Analyze Your Product/Service Write out a list of each feature of your product or service. Next to each feature, list the benefits they provide (and the benefits of those benefits). For example, a graphic designer offers high quality design services. The resulting benefit is a professional company image. A professional image will attract more customers because they see the company as professional and trustworthy. So ultimately, the benefit of high quality design is to gain more customers and make more money. Once you have your benefits listed, make a list of people who have a need that your benefit fulfills. For example, a graphic designer could choose to target businesses interested in increasing their client base. While this is still too general, you now have a base to start from.
Who are the people who live in your community? How to Define Your Target Market: Check Out Your Competition Who are your competitors targeting? Who are their current customers? Don't go after the same market. You may find a niche market that they are overlooking.
Defining your target market is the hard part. Once you know who you are targeting, it is much easier to figure out which media you can use to reach them and what marketing messages will resonate with them. Instead of sending direct mail to everyone in your zipcode, you can send only to those who fit your criteria. Save money and get a better return on investment by defining your target audience. My target market for life coaching services are women who are 50-70 years old who are going through a major life transformation and who want to proactively create positive change in their lives.
Defining your target market is the hard part. Once you know who you are targeting, it is much easier to figure out which media you can use to reach them and what marketing messages will resonate with them. Instead of sending direct mail to everyone in your zipcode, you can send only to those who fit your criteria. Save money and get a better return on investment by defining your target audience.
Defining your target market is the hard part. Once you know who you are targeting, it is much easier to figure out which media you can use to reach them and what marketing messages will resonate with them. Instead of sending direct mail to everyone in your zipcode, you can send only to those who fit your criteria. Save money and get a better return on investment by defining your target audience.
