MKT 100 - Ch 5 Target Markets

• Target Market


  A group of people and organizations you decide to sell to
• Targeted Marketing


  Differentiating some aspects of marketing (offering, promotion, price) for different groups of customers selected
• Mass Marketing


  Selling the same product at the same price and using the same promotion and place channels for everybody
• Benefits of Segmenting and Targeting Markets

  • Avoid head-on competition with other firms trying to capture segments
  • Develop new offerings and expand profitable brands and product lines
  • Remarket older, less-profitable products and brands
  • Identify early adopters
  • Redistribute money and sales efforts to focus on your most profitable customers
  • Retain "at risk" customers in danger of defecting to your competitors
• One-to-One Marketing


  The steps companies use to develop closer relationships with their customers
• Steps in One-to-One Marketing

  1. Establish short-term metrics to evaluate the consequences of your efforts

  2. Identify customers

  3. Differentiate among your customers

  4. Interact with your customers, targeting your best ones

  5. Customize your products and promotional messages to meet their needs
• Market Segment


  A group of customers who share a SIMILAR SET OF NEEDS AND WANTS within an overall marker
• Market Segmentation


  A process of identifying and categorizing the overall market into groups with similar needs and wants
• Target Market


  The available market segment which the company decides to pursue
• Segmentation Identification


  • Behaviour
  • Occasions
  • Benefits
  • User Status
  • Usage Rates
  • Buyer Readiness
  • Loyalty Status
  • Geographic
  • Psychograph
  • Demographic
• Identification in B2B Markets

  • Attitude (Enthusiastic, Positive, Indifferent, Negative, Hostile)
• Segment Attractiveness


  • It is identifiable
  • It is Accessible
  • It is Responsive
  • It is Sizable
  • It is Growing
  • Not full of Competitors
  • The company has the resources to compete in it
  • It fits with the firm's objectives
• Multi-Segment Marketing


  A strategy that allows firms to respond to demographic changes and other trends in markets, and helps companies weather an economic downturn by allowing customers to trade up or down among brands and products
• Concentrated Marketing


  Involves targeting a very select group of customers, a risky strategy used by firms with limited resources
• Niche Marketing


  Involves targeting an even more select group of consumers, a new effort to isolate markets and target them is called Microtargeting
• Positioning


  How consumers perceive a product or service relative to the competition
• Repositioning


  A strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis on changing market preferences
• Positioning Statement


  Used internally within the firm to communicate how you want consumers to perceive your product or service, using market research and marketing communications to consumers
• Perceptual Maps


  A graph that visually displays where your product stands based on criteria critical to buyers, to avoid head-to-head competition and position somewhere on the map where your competitors are not clustered