Target marketing pdf

This allows companies to approach customers with products addressing their needs, and meeting the preferences, while maintaining their competitive edge. Targeting By identifying the market segments, marketers need to decide which market place they intend to serve or offer their products. Upon deciding on or identifying the target group the company may select to apply a single or a combination of marketing strategies; such as mass marketing undifferentiated marketing , single segment differentiated marketing or multi-segment concentrated marketing Simkin, The question remains which strategy the company shall apply is highly dependent on a number of market, product offering, and competitive factors.

By considering the above, targeting specific population becomes more organized, to ensure cost efficiency, and effectiveness of resources in the marketing efforts, instead of offering it to a mass market Kotler et al, Figure 3.

Positioning The third and final stage in the market segmentation process covers positioning. Once the company identifies the segments and chosen which segment or segments to target the final step is to decide on precisely, on how and where in targeted segments to pitch a product or a brand. As Describes by Aaker, what differentiates a product is not just calling a feature unique, it must mean something to customers in the manner of being relevant and important.

Upon definition of the same then draw a clear image on what perception each market segment has about the products, enabling marketers to position their product in a more competitive angle, assisting in devising an effective market campaign appreciated in the minds of customers.

Ernst et al. The marketing team will launch a communication plan to the target customers, with an objective of creating customer awareness on the availability of such product in the market.

If the associated steps are not carefully assessed during implementation, product credibility may be at stake, such as overemphasizing product attributes during positioning with a limited opinion about the product in the market Ernst et al. Product may fail to satisfy the need of the customer, resulting in customer attritions.

Failure to use appropriate positioning methods and channels can result in a weak positioning, implying that positioning messages are incorrectly communicating the attributes of a product to the target market. Improper communication, may push the customer to purchase from competitors products, due to the fact of having a vague picture of the company products, and having a full understanding of competitors.

Overall, market positioning is a vital activity that allows the customers to differentiate a product from competitors in the market. Through positioning, new customers are attracted and old customers retained. Successful positioning is an indication that the business has understood the customer needs and expectations Ernst et al.

STP Critique STP have been found to be an effective strategy in creating and expanding in markets, yet this strategy has been limited by current economic trends Lynn, Globalization has opened markets both domestically and internationally, increasing the competition world-wide, making it easier for customers to purchase from any business around the world, posing a challenge on marketers in creating an effective segmentation or strategic positioning.

Consequently, governments adopting free-market economic systems has resulted in increased competition because of high number of services and products providers availability locally and globally.

At some point, all the useful segments in a market will have been identified and any further segmentation will produce segments that are insufficiently differentiated in terms of drivers of demand or too small to profitably target Lynn, Additionally, emergence of e-commerce has exposed consumers to new purchasing channels, implying that a customer may be influenced by a company targeting and positioning strategy, yet, for pricing, delivery, or convenience reasons, the customer may decide to purchase online from another supplier in another region.

Critiques of STP state that consumers belong to more than one segment rather than just one segment. Further, it is wrong to assume that it is more profitable to target segments with the greatest response because segments outside the target group are in most cases aware of the marketing mix and targeting the segment with the greatest response is not necessarily the same as producing the marketing mix with the greatest response Lynn, Implying a lost business opportunity and may lead to discrimination and exploitation in some instances.

Al STP Application. American Express marketing strategies at its core revolves around STP, with its global presence through its 3 main product lines: Consumer, corporate, travel accounts and services.

Over Years plus of history, American Express has positioned itself as an accessible, convenient, secure and trustworthy, Bhasin et.

The success of American Express company can be accredited to its ability to identify viable, profitable, and long-term segments, and tailor products meeting the needs and demands of global markets across the years of its service.

American Express Segments their market primarily on geographical location, psychographics, and demographics. Targeting American Express target affluent professionals, business travelers, seeking experience around the payment services offered, and features across the board that may meet their needs, while providing a peace of mind.

Applying differentiated marketing, American express effectively reaches to target groups based on their lifestyle, shopping, travel, and status preferences. For example, American Express target early career graduates whose income bracket is between to USD by the Bleu credit card, offering them financial flexibility, and revolving payment options.

According to Jet et. Al American Express introduced Centurion card as exclusive service to selected individuals who demonstrate a financial, and engagement ability, to earn the access to the premium club by invitation only. Positioning The American express company with its range of payment products, positions itself the idle partner for consumers, and corporates, providing expense management solutions, closed loop payment cycle, bringing a financial peace of mind to both card member and merchants.

Closed loop cycle provide quick resolution of financial disputes that might arise between card members and merchants, resolving such dispute in a record time to maintain customer and merchant loyalty, Sidi et. With all written, American express applies the consumer-benefits positioning.

Making it challenging for competitors to replicate. Save Save P3. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Target Market Profile In the light of bringing innovation and revolutionary hemp textile into the apparels market, the market condition plays a significant role in analyzing the needs of customers and the trending social factors that can potentially impact the purchase behaviors.

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Sherona Reid. Akshay Gattu. Puja Bhardwaj. Marte Caronongan. Mia Mohsin. Aiqa Ali. Example: For more than 90 years, Coca-Cola offered only one product version to the whole market and hoped that it would appeal to everyone.

Undifferentiated marketing provides cost economies. Differentiated Multiple Segment Marketing: The marketer decides to enter several market segments and develops separate offers for each.

These companies expect higher sales volumes by offering product versions and a stronger position within each segment. Differentiated marketing strategy increases costs considerably.

Single Segment Specialization or Niche Marketing: Many companies succeed by producing a specialized product aimed at a very focused market or a niche. This strategy also appeals to firms with limited resources. The company targets a segment and goes for a larger market share instead of a small share in a larger market segment. Example: Recycled paper producers often focus on the market for greeting cards or wedding cards.

Also producing Ventolin for Asthmatic patience. Concentrated strategy may involve more than normal risks. If a large competitor decides to enter the same segment, the going may become quite tough for the smaller company.

This allows them to be compared and contrasted in relation to each other. This is the main strength of this tool. Marketers decide upon a competitive position which enables them to distinguish their own products from the offerings of their competition hence the term positioning strategy. The brand or product manager must determine which strategy is best suited in a given situation to position the brand or the firm, as the case may be. Six steps need to be taken to reach a decision about positioning.

Identify competitors: It may appear simple but it is not. This requires broad thinking. The competing products may not be only those, which come from the same product category with which the brand competes directly.

To do this, a set of product attributes, such as product characteristics, consumer benefits, product uses or product users are chosen for comparison. The task is to identify relevant attributes to avoid any which would be superfluous. Which are the competing brands that consumers consider as similar and which are the ones considered dissimilar. The next step requires the identification of segments or clusters of customers who prefer this product location in the perceptual maps.

Customers who value a certain set of attributes or benefits would form a segment. An ideal product would be the one that is preferred over all others. Making the positioning decision: Up to this point, it may become reasonably clear to make some subjective decision as to which position can be appropriate. In many situations, however, it may become necessary to rethink. Positioning usually involves segmenting the market and choosing one or more segments Monitoring the position: How strongly and advantageously a position is maintained in the market should be monitored periodically by using the tracking studies to measure the image of the brand or the company.

The product may be provided with some new features or it may be associated with some new uses and offered to the existing or new markets. The brand is not seen to have any distinctive association. Over-positioning: In this situation, buyers have too narrowed an image of the brand. Thus, buyers might think that Apple makes only very expensive computers when, in fact, Apple offers several models at affordable prices Confused positioning: Sometimes, attempts to create too many associations or to frequently reposition the brand only serves to confuse buyers.

Doubtful positioning: This situation may arise when customers find brand claims unbelievable keeping in view the product features, price, or the manufacturer. For example, Steve Jobs of Apple Computers developed a unique desktop called the Next which failed in the market as it was neither affordable nor important for the consumers.

The Boston Consulting Group BCG has distinguished four types of industries based on the number of available competitive advantages and their size. Profitability is correlated with company size and market share, e. Stalemated Industry: When there are few potential competitive advantages and each is small.

Profitability is unrelated to company market share, e. Fragmented Industry: Where there are many differentiating opportunities but each opportunity gives very little competitive advantage, for example, a restaurant.

Specialized Industry: Where there are many high-payoff differentiating opportunities. For example, specialized machine tools. There are several variables through which a company can differentiate its market offerings such as: Product Differentiation: A product can be differentiated in many ways such as by changing the form and by varying the features or by setting a superior performance quality or by having a unique and superior design or by having a high degree of reliability or higher durability or simply by having a unique style.

Service Differentiation: When the physical product cannot be easily differentiated, the key to competitive success may lie in adding valued services and improving their quality. A company does so by providing Miscellaneous Services, offering an improved product warranty or maintenance contract; it can also offer rewards, provide customer training, etc Personnel Differentiation: Companies can gain a strong competitive advantage through having better trained people.

Identity comprises the ways that a company aims to identify or position itself or its products. Image is the way the public perceives the company or its product. This is why successful marketers look for specific market segments that they can serve more effectively.

Such mass customization strategies are particularly well suited to Internet marketing, where leaders such as Dell can maintain an interactive dialogue with customers and create a unique bundle of goods and services specifically for their individual needs and wants.

There are a few common bases, which are used in segmentation e. Segmentation is advantageous to marketers in many ways. Instead of spending all marketing resources on a heterogeneous market where customers have varied characteristics and response patterns, segmentation guides marketing managers to identify who are the likely buyers and to spend the resources on these buyers to achieve a time-based result.

Marketers use three strategic options in target marketing. They are undifferentiated marketing, differentiated marketing and concentrated marketing.

In undifferentiated marketing strategy, the same marketing program is offered to everyone regardless of their differences. Positioning is a very important concept in modern marketing. It is the decision by a marketer to try to achieve a well-defined and differentiated brand image relative to competition in a targeted market segment.

What will be the suitable base for the marketing of Televisions? How will you segment the market? Retrieved 27 June Determine how these tools can deliver practical proportionality in a company. For segmentation, the market should be ……………………. A narrowly defined group of consumers with complex set of needs is called ……… market. Daily newspapers have to follow …………………… segmentation. Cosmetics companies segment the market on the basis of …………………….

When individuals are guided in their choices by their beliefs and principles and not by feelings, desires and events, they are said to be motivated by ……………………. Segmentation on the basis of which of the following variables is not a part of behavioristic segmentation? Markets which are not separated by the marketers for the purpose of promotion are called …………………… markets.