Target marketing

Target market
• A target market is a group of customers at whom
the sellers specifically aim their marketing efforts.
• Targeting involves evaluating various segments
and selecting how many and which one to target.
• The three aspects in targeting are
1. Evaluation
2. Selection
3. Coverage
1. Evaluating the segment
The following are the criteria to be used to
evaluate the segment
• Profitability
• Attractiveness
• Growth rate
• Company objectives
• limitations
 Developing a targeted marketing
strategy
1. Define relevant market
2. Analysis of characteristics and wants of potential
customers.
3. Identify the basis for segmenting the market.
4. Define and describe market segments
5. Analyse competitor’s position
6. Evaluate market segments.
7. Select market segments
8. Finalise the marketing mix.
 Identifying and selecting target
markets
• The important factors are
1. socio-cultural, economic development and
infrastructural environment of different districts.
2. Density of population in different villages.
3. Heterogeneity and homogeneity of population
across regions.
4. Mobility, media availability and cost of access to
the area.
5. System of interaction.
 Targeting - coverage of segments
• Undifferentiated marketing - Mass distribution and mass
advertising. eg. Many toilet soap users prefer medicinal value,
cosmetic strength, economy and the feeling of freshness in their
toilet soap. Medimix offers all these features and also claims that it
is a beauty care Ayurvedic family soap. Coca Cola targets both
urban and rural market with the same drink.
• Differentiated marketing - Investigates and identifies differences
between segments and tries to match the market offer to the
desires and expectations of each segment. Eg. Companies
developed 25-30 HP tractors for small or marginal farmers and 50
HP tractors for large farmers.
• Single segment concentration - Due to the small number of
consumers in each segment, targeting only one segment would
spread marketing efforts thinly over a vast area. With Brands like
Lifebuoy Active, Lifebuoy Gold, Lux, Breeze and Liril, HUL targets
different consumers segments in the rural market
• Choosing a coverage strategy

Undifferentiated Differentiated Concentrated

Company resources Moderate Large Limited

Product Variability Less More Less

Product life cycle stage Introduction Growth Maturity/Introdu

ction
Market variability Less High High

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 Positioning
• Positioning is the act of finding the place in the minds of the
customers and locating the brand therein.
• Positioning involves three tasks
1. Identifying the differences of offer vis- a- vis competitors offer.
2. Selecting the differences that have different competitors
advantages.
3. Communicating such advantages effectively to the target
audience.
Eg. Himami positions Sona Chandi Chyavanprash on the two platforms
of a health body and a sharp mind.
Ghari detergent – low price high quality..
Lifebuoy Active – from male soap to a family soap
 Identifying the Positioning Concept
 Product Differentiation – Can be differentiated on the basis of
form, features, durability and quality. Coke introduced Chota Coke
at Rs 5 for rural. Hero Honda came out with the lower priced Dawn
model of motorcycle for the rural buyer. Meswak, Neem and
Babool toothpaste are herbal versions of the soap.
 Service Differentiation – Service may be differentiated in respect of
delivery, installation and maintenance. Reliance, a private LPG
company, when pitted against the three well entrenched public
sector undertakings created service differentiation on the basis of
their distribution network and better refilling facility.
• People – People who are widely respected and admired by
consumers. Endorsement of Coca Cola by Aamir Khan (dressed as a
villager) or of Sona Chandi Chyavanprash by Sunny Deol. Courteous
staff of HDFC Bank.
• Image – Foreign brands image. Image is built by advertisements,
symbols, logos, signs, colors and general reputation of the company.

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 Selecting the Positioning Concept
Critical factors that should be considered while positioning a brand are:
 Attractiveness – Does it provide value to the customer?
 Distinctiveness - Is it different from that of its competitors?
 Pre-emptive - Is it very difficult for the competitors to copy it?
 Affordability - Can buyers pay for it?
 Communicability – Can the product difference be clearly expressed?
Developing the concept
 Deciding which positioning to promote : Lay stress on the generic benefit of
the product. Eg. Sprite bujhaye only pyaas, baaki sab bakwaas.
Thanda matlab Coca Cola.
 Deciding how many ideas/differences to promote – Positioning of two or
three ideas would be a better proposition as rural consumers would think that
they are getting more value for their money.

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