HOW DO WE DEFINE TARGETING IN MARKETING?
Targeting is the part of marketing strategy, along with segmentation and positioning, which revolves around the customer’s value and relationship. Therefore, the need to evaluate the various segments in the market such as group or organizations, needs the product or services, to be specially designed to satisfy with help of one or more segments to enter the market. Therefore, marketers need to identify and reviews the unique group of buyers who differ in their needs and preferences. And each segment that is chosen to target, the marketer needs to establish and communicate the unique benefits of the company or product or services, that is been offered in comparison to its competitors in the market.
UNDERSTANDING AND GAUGING MARKET SEGMENTS:
In evaluating the various marketing segments, the company should keep in mind the segment size and how attractive is the market, internal and external strengths and finally concentrate on its objectives or goal. As noticed the larger companies always tend to prefer large segment size but at the same time small companies would avoid large segments as this requires more resources. Hence, segment growth is a desirable characteristic as the companies would like to move ahead with the sales and profits. The companies also need to check what the competitors are onto, such as what discount is the competitor offering, who are the new competitors in the market, as this may affect their part of share in the market and due which the customer may change the brand loyalty because of the low price and the competitor is ready to do business in a low profit for the initial launch stage. Growing need to reduce the price to the customers and also to the suppliers, ...
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... grew by 125 per cent to Rs. 4,442 crores as on March 31, 2000. The net non-performing assets (NPAs net of specific loan provisions) were 0.77 per cent of customer assets as against 1.08 per cent in the previous year, indicating portfolio quality at levels which the bank says are amongst the best in the Indian banking industry”. #1
CONCLUSION:
Therefore, once the company has decided on the segments that it needs to be targeted it does some research to look out in detail, have a projected sales and profit figures and also have a marketing strategy or a campaign plan along with comparison of the competitors. Each segment can be divided in the market to serve the customers better with company also gains profit in it.
REFERENCES:
#1. http://www.hindu.com/businessline/2000/04/15/stories/14150804.htm
# Marketing management by Philip Kotler 14th edition
The company first needs to collect demographic and geographic information relevant to potential store location choices in order to segment its market. It is extremely important that the marketing
The first step is to (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way (Consumer Psychologist, n.d.). •
Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees. . The strategy of sending coupons are huge for a customer, so increase discount based on their purchase history and use the store brand credit card to attract more customers.
A segment profile comes down to describing customer characteristics of a typical customer. It is important to build profitable relationships with the right customer is good for the marketer’s stakeholders. After this, the brand can start to build up their company target market, as well as selecting merchandise that would be best for the store.
Marketing In this day and age is vital for a company to perform at its possible best. Marketing’s main focus is to give great satisfaction to a customer. There are many aspect of marketing, these aspects give marketer’s the tools to help strive for the best possible success they can achieve. They hope that they can create exposure for their brand, product or service.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting.
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
Segmenting the market will allow the company to focus more clearly on targeting the right customers with the right product that better satisfy their needs.
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
Segmentation, targeting and positioning are interrelated activities which are important to achieving a successful Marketing Mix. Discuss these concepts in theory and give practical examples of how they can be applied to one industry of your choice
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
Once a business has successfully completed segmentation based on the market into various groups the targets will be chosen. As we all know no one unique strategy will be able to appeal to all consumer segments therefore being able to come up with different strategies for specific targets are a vital aspect of marketing.
The Role of Product Positioning in Consumer Buying Decision Process Segmenting, Targeting, Positioning (STP) is the process which marketers employ to select target markets. Segmentation is the process of ordering consumers into groups with similar product interests or needs. Targeting involves a company determining which market segments it believes it can satisfy, and then choosing an appropriate targeting strategy for the segments. Positioning is how consumers perceive a brand or product, particularly in relation to other brands and products.