This is an old revision of this page, as edited by 123.236.122.182 (talk) at 09:07, 14 December 2010 (→Market segmentations). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.
Revision as of 09:07, 14 December 2010 by 123.236.122.182 (talk) (→Market segmentations)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff) | This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages)
No issues specified. Please specify issues, or remove this template. (Learn how and when to remove this message) |
A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the two elements of a marketing mix strategy that determine the success of a product in the marketplace.
Once these distinct customers have been defined, a marketing mix strategy of product, distribution, promotion and price can be built by the business to satisfy the target market.
Market segmentations
Target markets are groups of people separated by distinguishable and noticeable aspects. Target markets can be separated into:
- • geographic segmentations (their location)
- • demographic/socio-economic segmentation (gender,age, income occupation, education, sex, household size, and stage in the family life cycle)
- • psychographic segmentation (similar attitudes, values, and lifestyles)
- • behavioral segmentation (occasions, degree of loyalty)
- • product-related segmentation (relationship to a product)
Strategies for Reaching Target Markets
Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micromarketing.
Examples
CVS Caremark’s target market is women since they make up 80 percent of the pharmacy chain’s customers. CVS has marketed its stores to aid women who are constantly multitasking. They recently redesigned 1,200 of its 6,200 stores to women, including shorter wait times for prescriptions, wider and better-lit shopping aisles, and more beauty products.
The Oreo cookie is a popular cookie in the U.S., known for its two discs of chocolate with a white cream filling. The Double Stuf Oreo cookie is also marketed to U.S. consumers. However, Kraft has formulated a different version of the Oreo to target consumers in China. The Chinese version consists of four layers of long, thin biscuits coated in chocolate. Kraft CEO, Irene Rosenberg, trusts his executives who live and work in China to know what consumers would prefer in order to maximize their profits. In Germany, Kraft is appealing to the tastes and preferences of German consumers by creating dark chocolate products. It is also introducing premium instant coffee in Russia, which is a beverage that is popular to consumers.
World Wrestling Entertainment’s (WWE) target market is young males. Monday Night RAW® is the number one entertainment program on primetime cable among male viewers (2 million+) including the male demographics of 18-34, 18-49 and 25-54. It is shown at 9:00 PM ET to reach its target market.
Kohl’s department store has a target market consisting of consumers buying for themselves and their families.
The Psychology of Target Marketing
A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Research has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the target market. Research has generally shown that target marketing strategies are constructed from consumer inferences of similarities between some aspects of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the represented style. Consumers are persuaded by the characteristics in the advertisement and those of the consumer.
References
- Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
- Cohen A. Wiliam. (2005) The Marketing Plan. John Wiley & Sons, Inc.
- Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
- Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
- World Wrestling Entertainment. (2009, May 28). Strength in Numbers: World Wrestling Entertainment 2009 Annual Report. Retrieved from http://corporate.wwe.com/documents/annual_report_2009/images/WWE-AR2009.pdf
- Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
- Aaker, J., Brumbaugh, A., & Grier, S. (2000). Nontarget Markets and Viewer Distinctiveness: The Impact of Target Marketing on Advertising. Journal of Consumer Psychology (Lawrence Erlbaum Associates), 9(3), 127. Retrieved from Academic Search Premier database
 | This article has not been added to any content categories. Please help out by adding categories to it so that it can be listed with similar articles. (September 2010) |