TARGET MARKET

MARKETING MIX
The combination of product, price, placement and promotion

Before a company can develop an appropriate mix of 4 ps, it has to define its.

TARGET MARKET

TARGET MARKET
The group of customers or consumers to whom a firm sells or wishes to sell its products OR A sub-group of a larger market chosen as the focal point for a marketing or advertising campaign.

Once market researchers have determined the target market.

the company can develop an appropriate marketing mix.

TARGETED MARKETING
A practical marketing activity carried out in defined market segments Exists in two forms:

concentrated marketing differentiated marketing

Concentrated marketing
A marketing strategy that refers to a firm's specialization in one or two market segments and the creation of just one specialized marketing mix

Differentiated marketing
A marketing strategy used by firms that take into account several market segments. These firms elaborate a specialized marketing mix for each of these segments.

Firms are free to choose between

Shotgun" approach Rifle approach

Shotgun" approach
A marketing approach whose aim is to cover as wide an area or population as possible. Shotgun approach hits more objects than one, even if only randomly.

Rifle approach
A marketing approach whose aim is to concentrate efforts on a narrowly defined area in order to achieve a clearly defined target.
A rifle aims only at a chosen target.

TARGET MARKET SEGMENTATION

Determined by 4 variables:

Demographic Psychographic Geographic Behavioural

Demographic Segmentation
Age Gender Race Marital Status Income Education Occupation Religion Ethnic Group

Example no.1
How would you describe the demographic segment targeted by this advertising campaign?

14

Example no.2
How about this ad? What is the target demographic for this ad campaign?

15

Psychographic Segmentation

ATTITUDES

Lifestyle

PERCEPTIONS

BELIEFS

This segmentation provides insight into consumers motivation

Geographic Segmentation
Country Region State City Neighborhood Geo-demographic Urban/ suburban / rural

Behavioural Segmentation
Places and buying methods preferred by purchasers Quantities of goods bought Expected benefits from product use Brand loyalty etc.

How would you describe the market segment targeted by this advertising campaign? Prestige? Safety?

Example no.3

Fuel Economy?

Advantages of market segmentation

Better satisfaction of customer needs More efficient promotion and distribution of the product, as concentration on just a part of a market brings savings Flexible adaptation of the product to the customer and thereby the chance of attaining a higher price Development of the competitive edge through product differentiation.

Niche Strategy
A marketing strategy that focuses on a smaller market segment with a considerable growth potential.

The market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.

Positioning
The process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Positioning is looking at the product through the eyes of the customer compared with the competition.

Answer the following questions:

1. What do the elements of the marketing mix focus on? 2. What is the group of customers who may buy the product known as? 3. Why are the consumers who make up the target market for a product referred to as potential customers? 4. What does a successful marketing mix depend on?

5. Complete the diagram below with the elements of the marketing mix: ______ ______ CONSUMERS ______ ______ 6. Why are the arrows in the figure twoway rather than just one-way? 7. Why are consumers the central point of the diagram?

DECIDE WHETHER THESE STATEMENTS ARE true (T) or false (F). CORRECT THE FALSE ONES:

Knowledge about consumer buying habits is essential in developing a successful marketing mix. The company focuses on production in its marketing strategy. Product and promotion combine to form a complete marketing mix. The company directs its marketing efforts toward the target market. The marketing strategies of product, price, placement, and promotion are planned separately.

Thank you for your attention!