Target marketing is a potent marketing strategy that divides a particular market into specific segments, allowing businesses to locate their niche audience. Using target marketing, firms can concentrate their marketing efforts on key segments/niches that closely match their business offerings and objectives and get closer to the best possible leads, leading to increasing conversions, and better sales.
Segmentation, targeting, and positioning (STP) is the central process of target marketing. Together, they help businesses find the right target market and devise effective tactics & long-term strategies. So, what is a target market? What meaning or definition can perfectly describe it? And how do the STP process and target marketing strategies help businesses identify the ideal target market & connect with the right audience?
This content takes a deep dive into all the nuances of target marketing. if you are working on a target marketing assignment help, review this page for quick revision.
Target marketing campaigns begin with market or customer segmentation.
Market segmentation uses multiple attributes to classify customers into the most appropriate segments.
Based on evaluations, businesses choose one or more segments for targeting.
Segmentation, targeting, and placement are the three pillars of any target marketing strategy. Businesses modify and develop customised plans based on their objectives and the nature of the market.
What is the target market strategy meaning? Well, it is a business and market-specific strategy that allows a company to understand a market, segment it in the best way possible, and find the most appropriate segment for product placement.
A terrific target marketing strategy helps businesses find the audience with whom their products & marketing strategies will resonate the most.
Implementation and control of the marketing strategy are essential aspects of any marketing plan. It ensures timely optimisation of tactics, reformulation of objectives, pivoting, and achievement of long-term goals.
It is all about continual monitoring and simultaneous evaluation of all marketing activities, market trends & conditions, assessment of the KPIs of implemented marketing strategies, maintaining records, and using insights to re-evaluate strategies.
So, what are some effective target marketing strategies? The following section explores.
Mass marketing, also known as undifferentiated marketing, is an umbrella term for all those marketing strategies that target the masses.
Businesses offering essential products and services generally engage in mass marketing. These businesses generally use mass media to promote their offerings and target the maximum number of potential customers.
Differentiated marketing strategies come into play when a business needs to target multiple distinct market segments. Differentiated marketing targets every segment differently and offers varied benefits such as varied market coverage, lean & practical usage of resources, reaching a wider audience, improved brand recognition and increased revenue generation.
The downside of this class of strategies is their increased costs, intense competition in a particular niche segment, uncertainty, and limits on business growth.
Also referred to as concentrated marketing, niche marketing focuses on acquiring the largest share of one or multiple niche segments. It is a highly targeted form of marketing and depends on the acute analysis of the targeted market segment(s).
Niche marketing strategies allow businesses to place their products and services in front of a specific audience with well-defined attributes. Niche markets are subsets of a larger population and niche market audiences generally have very particular or quirky requirements.
This is a specialised version of the target marketing strategy that dwells deep into the specific likes & dislikes of the customer. A particular section of customers in a niche market segment is scrutinised, and the features & marketing processes of a product or service are tailored to serve them.
Micromarketing strategies are implemented to cater to a substantially narrow customer base with particular demands & unique characteristics. It entails businesses to do focused research, identify nuances, and then define an audience using fixed & transient attributes.
Technology plays a central role here, and various businesses use analytics to uncover valuable insights from customer data, feedback, etc. Naturally, the costs are high due to all the research involved and the need to design specific advertising campaigns for different segments. Also, the need for an economy of scale is another major limitation, as more significant demographics will not respond to campaigns tailored for a niche audience.
Next, look at the different market segmentation techniques followed by businesses across sectors.
A research-intensive activity, segmentation involves thorough research of a target market and categorising it according to specific attributes, properties, characteristics, and diverse needs of market members. Buyer behaviour, location, demographics, purchasing patterns, quirks and special requirements, etc., are common factors that are targeted and used to categorise a broad population into specific segments.
Five of the most prominent techniques are discussed in brief below.
Demographic segmentation uses specific, measurable statistics based on characteristics such as:
Demographic segmentation is one of the most rudimentary techniques for identifying target markets. The strengths and benefits are many and allow businesses to determine how successful a marketing campaign will be, how to tailor a campaign, which products/services will resonate with whom, etc.
Geographic segmentation is all about segmenting markets & customers according to geographic location. People living in rural areas have different needs than urban and semi-urban areas. Again, for businesses targeting multi-national audiences, the demands and requirements of people from third-world & developing countries will differ from developed countries.
Geographic segmentation takes into account the following variables such as:
Geo-segmentation is often used in tandem with other techniques to identify target markets accurately.
As the name suggests, psychographic segmentation studies the mindset and psychology behind a customer's preferences, buying patterns, etc. Much more in-depth than behavioural segmentation, this particular technique looks at the intricacies of how the audience thinks.
Psychographic segmentation complements demographic counterpart & looks into aspects such as:
Behavioural segmentation investigates the buying behaviour of customers. It tracks the typical process a person goes through while buying a product or purchasing a service. Unlike psychographic segmentation, which focuses on the personalities & thinking patterns of a buyer, behavioural segmentation looks into buying behaviour by studying things such as:
Research and analysis are crucial for accurate segmentation & lie at the core of target marketing campaigns. Read on below to find out the overall process of target market analysis and why data is considered as valuable as money by marketers all over.
Dedicated analysis and understanding the total addressable market are the first steps in target market analysis.
Though the overall process remains the same, different businesses, markets, products and services require different approaches, research and planning. If you are working on a strategy for your target market assignment, connect with MAH.io’s experts for acute assistance.
We wrap things up with some famous examples of target marketing.
Check out the following examples of target marketing to understand how effective a target market analysis can be for a business.
Uber employs a location-based micromarketing strategy in every city it operates in or intends to expand into. For example, when the firm first forayed into the Vancouver market, it used the city’s rainy weather to nudge people into using their ride-hailing app to save time & effort.
Gucci has repositioned itself from a luxury brand to one that caters to the progressive, more generic demographics. Such retargeting has turned it into a much more inclusive brand that supposedly non longer serves only the rich and elite.
Netflix used segmentation, targeting, and positioning to provide accurate recommendations to its diverse audience.
Airbnb segments its market demographically, geographically, and psychographically to suggest ideal travelling destinations, activities, accommodations, and the like.
Well, those were some prominent target marketing examples. Hope all the information above is handy for anyone working on their target marketing assignments.
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