Engaging in target marketing:
Salt of the Earth
Do all markets segment? Are there any markets where every customer wants the same thing i.e. demand is homogeneous?
When posed this question, people invariably suggest the market for salt is one where there are no different segments. After all, one salt is much the same as another. We put it in our food and apart from health issues think no more about it. The mention of health gives us a clue as to the existence of a distinct market segment within the overall market for salt. We are now aware that too much salt is bad for our health, but many people do not like the idea of cooking and eating without salt. As a result there are now healthier versions of salt available with different constituents targeted specifically at this segment. Once we recognize that there are different salt products aimed at different segments we find there is a whole range of different types of salt targeting the needs of different segments of the market e.g. ‘up-market’ sea salt, ‘hand dried’ crystals, basic salt products for price-conscious consumers, extra large packets for the catering trade and even rock salt for those who simply want to clear their paths of snow and ice. A bewildering range of salt products can by found by keying ‘salt’ into your search engine.
The fact that most markets are made up of heterogeneous demand clusters means companies have to decide which of these clusters to serve. Most companies recognize that they cannot effectively serve all the segments in a market. They must instead target their marketing efforts.
Imagine you are a part of the project team developing a new car. Should the proposed new model be a two, four or five-seater model? Should it have a 1000, 2000 or 3000cc engine? Should it have leather or fabric seats? In deciding these issues, the overriding factor is customer demand, i.e. what are the customers’ needs? Some customers (segments) may want a five-seater, 2000cc model with leather upholstery, while others may prefer a four-seater with a 1000cc engine and fabric seats. One solution is to compromise and produce a four-seater 1500cc model with leather seats and fabric trim. Clearly, such a model would go some way to meeting the requirements of both groups of buyers, but because the needs of neither market segment are precisely met and catered for, customers might prefer and purchase from suppliers who meet their requirements exactly.
In order to secure these advantages, the base(s) used for segmentation should fulfil the following criteria:
Of all requirements for effective segmentation, this last one is the most important. It is an essential prerequisite in identifying and selecting market targets. These criteria are examined later in this chapter when we discuss the variety of bases for segmenting markets. Of course target marketing is not without its disadvantages which are:
Stuck for Choice
Major car producers such as Ford, Chrysler and Fiat produce a model and variations on that model for virtually every segment of the market. The following is a list of the model range of passenger cars available from Ford in September 2009:Ka
Most of these main model variants are available with several engine options, several trim variants, a myriad of colours, and a huge range of accessories. Provided the customer wants a Ford they would be hard put not to find something that suited them. In short, the patterns of demand we referred to earlier require that marketers develop specific marketing mixes (i.e. products, prices, promotional appeals and distribution channels that are aimed or targeted at specific market segments). This ‘targeting’ vs. ‘mass marketing’ approach is referred to as using a ‘rifle approach’ as opposed to using a ‘shotgun approach’ to achieve market impact.
We now examine steps in target marketing and how these steps work in practice.
Marketing Management Related Tutorials
|Consumer Behaviour Tutorial||Marketing Strategy Tutorial|
|Marketing Research Tutorial||Principles of service marketing management Tutorial|
|Advertising Management Tutorial|
Marketing Management Related Interview Questions
|Consumer Behaviour Interview Questions||Marketing Strategy Interview Questions|
|Marketing Concepts Interview Questions||Marketing Research Interview Questions|
|Principles of service marketing management Interview Questions||Advertising Management Interview Questions|
|Brand Management Interview Questions||Marketing Interview Questions|
Marketing Management Related Practice Tests
|Consumer Behaviour Practice Tests||Marketing Strategy Practice Tests|
|Marketing Concepts Practice Tests||Marketing Research Practice Tests|
|Principles of service marketing management Practice Tests||Advertising Management Practice Tests|
|Brand Management Practice Tests|
Marketing Management Tutorial
Development Of A Strategic Approach To Marketing: Its Culture; Internal Macro- And External Micro-environmental Issues
Markets And Customers: Consumer And Organizational Buyer Behaviour And Marketing Strategy
Markets And Customers: Market Boundaries; Target Marketing
Product And Innovation Strategies
Channels Of Distribution And Logistics
Customer Care And Relationship Marketing
Marketing Information Systems And Research
Analysing The Environment: (opportunities And Threats) And Appraising Resources (strengths And Weaknesses)
Evaluating And Controlling Strategic Marketing
Strategic Marketing Planning Tools
Services Marketing And Not-for-profit Marketing
All rights reserved © 2018 Wisdom IT Services India Pvt. Ltd
Wisdomjobs.com is one of the best job search sites in India.