Targeting

Targeting is activity involving selection of target markets, which at the relevant marketing expenditures will provide optimal results.This provides a possibility to achieve higher turnover, thereby obtaining a greater market share. Target market is a market where the company should focus, to locate their business. In order to properly assess the effectiveness of the selection of target markets, growth should be in a form of a snowball effect in relation to expenditures on marketing and thus also referred not to the rotation, but the net results (profits). Market segmentation is the basis for the selection of target markets

Experimental plans, involving the application of appropriate marketing tools in selected groups of market segmentation, precede the selection of target markets. To experiment involves the same market and the application of different marketing tools and activities, such as: advertising, exposition, a new form of sale, price change, discount, etc.

Criteria for choosing target markets

There are several criteria that can be used to choose a target market for a product, including:

• Demographics: Characteristics such as age, gender, income, education, and occupation can be used to identify potential customers.
• Psychographics: Lifestyle, values, personality, and interests can be used to segment the market and identify potential customers.
• Behavior: Purchasing habits, brand loyalty, and usage rate can be used to identify potential customers.
• Geographic: Location, climate, and population density can be used to identify potential customers.
• Benefit: Identifying the specific benefit that your product or service provides, and then targeting those customers who are most likely to be in need of that benefit.
• Competitors: Identifying the target market of your competitors and positioning your product or service to fill a gap in the market.

It's important to note that a company may choose to target multiple markets simultaneously, and that the target market may change over time as the product or company evolves.

Targeting — recommended articles

Selection of target markets — Types of market segmentation — Market segmentation process — Target group — Differentiation strategy — Incremental sales — Analysis of customer — Customer equity — Beachhead market

References

• Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.