The second most imperative element of effective marketing is to select the appropriate target market from the different market segments identified. This chosen target market is identified to develop and promote a particular product according to the needs of that particular consumer group. Similarly, the goal of targeted marketing is to choose the appropriate market segment and design powerful marketing campaigns solely for those segments. Nowadays, focused target marketing is a key to success for most of the small businesses. A major advantage of targeted marketing is that it sets a definite direction for the company’ s marketing efforts and leads to a more synchronized and cohesive marketing plan, making pricing promotion more time and cost effective. Often, market segmentation is confused with target marketing.
Here, to clearly differentiate between them, it is important to note that segmentation involves dividing the whole market whereas the target market is selecting the segment as its market for concentrating its sales on. A selection of target market requires a complete evaluation of all the market segments and then, the most appropriate one is selected.
The evaluation of the target market is done on the following criteria: SizeThe size of the target market needs to be evaluated and whether it is profitable to invest in the particular size of the consumer market. Expected GrowthThe future of the target market is evaluated and whether it is expected to grow in the near future so it might be profitable to choose it. Competitive PositionThe number of competitors in the market is an important factor and their product offerings. Often, it is not a good idea to launch a product in a market where there is already a strong competitor with the loyal customer base. Cost to ReachConvenience and accessibility is often a major factor in the sales of a product.
Therefore companies need to see the costs associated to reach out to the target market. Compatibility As already mentioned, marketing efforts should be aligned with the goals. Therefore, while selecting the target market, it is important to see that it does not conflict with the organizational goals.
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