A target market is as a group of customers or buyers that a business aims its marketing strategies and, ultimately, its products at. Your target market is the most important part of planning a marketing strategy.
A target market is a group of individuals who are segregated by certain factors. There are various ways to approach segmentation based on these factors:
- Geographic segmentation – segmentation according to region and climate
- Demographic or socioeconomic segmentation – segmentation based on gender, income, age, and education
- Behavioral segmentation – segmentation in terms of degree of loyalty and by occasion
- Physiographic segmentation – segmentation by values, attitude, and lifestyle
- Product related segmentation – segmentation based on relation to the product
Types Of Target Marketing Strategies
Target marketing strategies involve dividing a broad target market into subsets depending on extensive analysis of the target market in general. This is important because the company needs to decide how many, and which, segments it’s going to compete in. Let’s take a look at some tried-and-tested target marketing strategies.
Mass (Or Undifferentiated) Marketing
In this case, the company ignores the concept of market segmentation. Here, the company designs a single marketing strategy and appeals to every customer in the same way.
This is usually adopted by the first company that establishes itself in a new industry as there is no competition at this stage.
Here, a company designs a variety of offers to target specific segments of the market. This helps appeal to each segment in an effective manner.
This is the most common marketing strategy and has the potential to generate higher profits, increase sales, and create economies of scale.
However, differentiated marketing means that a business will need to invest much more in processes like production, inventory management, promotion, and market research.
Niche market focuses on specific products, specific market needs, production quality, and price range. This is more common amongst larger organisations. For example, an organisation that specifically sells villas will be able to focus their search and find promising customers because they’re aware of the kind of consumer who would buy a certain type of villa.
Customised (One-To-One) Marketing
The requirements of an individual customer may be highly-specific in certain markets. These customers have a high purchasing power and can afford to shell out more money, enabling companies to design a separate marketing mix for each individual.
There are other ways to approach this as well, but these strategies will enable you to take your business to the next level. If you’re confused about how to choose a target market strategy, you can hire the services of Infinity Intellectual. We’ve been designing result-oriented market strategies for years and have a long list of satisfied clients.