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A target market is a group of customers within a business's serviceable available market at which a business aims its marketing efforts and resources. A target market is a subset of the total market for a product or service. The target market typically consists of consumers who exhibit similar characteristics (such as age, location, income or lifestyle) and are considered most likely to buy a business's market offerings or are likely to be the most profitable segments for the business to service. Once the target market(s) have been identified, the business will normally tailor the marketing mix (4 Ps) with the needs and expectations of the target in mind. This may involve carrying out additional consumer research in order to gain deep insights into the typical consumer's motivations, purchasing habits and media usage patterns. The choice of a suitable target market is one of the final steps in the market segmentation process. The choice of a target market relies heavily o...

A target market is a group of customers (individuals, households or organisations), for which an organisation designs, implements and maintains a marketing mix suitable for the needs and preferences of that group. Target marketing goes against the grain of mass marketing. It involves identifying and selecting specific segments for special attention. Targeting, or the selection of a target market, is just one of the many decisions made by marketers and business analysts during the segmentation process. Examples of target markets used in practice include: Rolls-Royce (motor vehicles): wealthy individuals who are looking for the ultimate in prestige and luxury Dooney and Bourke handbags: teenage girls and young women under 35 years

Selection of a target market (or target markets) is part of the overall process known as S-T-P ( S egmentation→ T argeting→ P ositioning). Before a business can develop a positioning strategy, it must first segment the market and identify the target (or targets) for the positioning strategy. This allows the business to tailor its marketing activities with the needs, wants, aspirations and expectations of target customers in mind. This enables the business to use its marketing resources more efficiently, resulting in more cost and time efficient marketing efforts. It allows for a richer understanding of customers and therefore enables the creation of marketing strategies and tactics, such as product design, pricing and promotion, that will connect with customers' hearts and minds. Also, targeting makes it possible to collect more precise data about customer needs and behaviors and then analyze that information over time in order to refine market strategies effectively. The first st...

Markets generally fall into two broad types, namely consumer markets and business markets . A consumer market consists of individuals or households who purchase goods for private consumption and do not intend to resell those goods for a profit. A business market consists of individuals or organisations who purchase goods for one of three main purposes; (a) for resale; (b) for use in producing other goods or services and; (c) for general use in daily business operations. Approaches to segmentation will vary depending on whether the total available market (TAM) is a consumer market or a business market. Market segmentation is the process of dividing a total available market, using one of a number of key bases for segmenting such as demographic, geographic, psychographic, behavioural or needs-based segments. For example, a demographic segmentation of the adult male population might yield the segments, Men 18-24; Men 25-39, Men 40-59 and Men 60+. Whereas a psychographic segmentation mig...

A key consideration in selecting the target markets is whether customer needs are sufficiently different to warrant segmentation and targeting. In the event that customer needs across the entire market are relatively similar, then the business may decide to use an undifferentiated approach . On the other hand, when customer needs are different across segments, then a differentiated (i.e. targeted) approach is warranted. In certain circumstances, the segmentation analysis may reveal that none of the segments offer genuine opportunities and the firm may decide not to enter the market. When a marketer enters more than one market, the segments are often labeled the primary target market and the secondary target market. The primary market is the target market selected as the main focus of marketing activities and most of the firm's resources are allocated to the primary target. The secondary target market is likely to be a segment that is not as large as the primary market, but may h...

Positioning is the final step in the S-T-P planning approach (Segmentation→ Targeting → Positioning). Positioning refers to decisions about how to present the offer in a way that resonates with the target market. During the research and analysis carried out during the segmentation and targeting process, the marketer will have gained insights into what motivates consumers to purchase a product or brand. These insights can be used to inform the development of the positioning strategy. Firms typically develop a detailed positioning statement which includes the target market definition, the market need, the product name and category, the key benefit delivered and the basis of the product's differentiation from any competing alternatives. The communications strategy is the primary means by which businesses communicate their positioning statement to target audiences.

Once the segmentation has been carried out, target markets selected and the positioning strategy developed, the marketer can begin to shape the marketing mix (or marketing program ) around the needs, wants and motivations of the target audience. The traditional marketing mix refers to four broad levels of marketing decision, namely: product , price , promotion , and place . When implemented successfully, these activities should deliver a firm's products or services to target consumers in a cost efficient manner. The four core marketing activities include: product, price, place and promotion. The marketing mix is the combination of all of the factors at the command of a marketing manager to satisfy the target market. The elements of the marketing mix are: Product – the item or service that is being offered, through its features and consumer benefits and how it is positioned within the marketplace whether it be a high or low quality product. Price , is a reference to the sacrifices...

Marketers have outlined five basic strategies to the segmentation and the identification of target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing (niche marketing) and micromarketing (hyper-segmentation). Mass marketing (undifferentiated marketing) edit Undifferentiated marketing/Mass marketing is a method which is used to target as many people as possible to advertise one message that marketers want the target market to know (Ramya & Subasakthi). When television first came out, undifferentiated marketing was used in almost all commercial campaigns to spread one message across to a mass of people. The types of commercials that played on the television back then would often be similar to one another that would often try to make the viewers laugh, These same commercials would play on air for multiple weeks/months to target as many viewers as possible which is one of the positive aspects of undifferentiated marketing. However, ...

Digital communications have allowed marketers to segment markets at ever tighter levels - right down to the individual consumer. This process is known as micromarketing, cyber-segmentation or hyper-segmentation. In effect, this allows to the marketer to pursue both a differentiated marketing strategy and a niche marketing strategy to reach the smallest groups in the marketplace. R Hyper-segmentation relies on extensive information technology, big databases, computerized and flexible manufacturing systems, and integrated distribution systems. Data is captured from electronic communications devices, mapped and logged with a management information system. This enables the integration of observed behaviour (domains accessed) with motives (content involvement), geographics (IP addresses), demographics (self-reported registration details) and brand preferences (site-loyalty, site stickiness). Additional data inputs might include behavioural variables such as frequency (site visits), diversit...