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Target Market

Framed by: Mr.Moumni Souhail

Realised by : Kaoutar Ihssane Mariem Oubair

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Introduction Definition of target market Types of market segmentation

o Demographic segmentation o Geographic segmentation o Psychographic segmentation o Behavioural segmentation

Target Market Strategies Exemples Conclusion

Plan :

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Introduction

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Definition : Target market is a business term

meaning the market segment to which a particular good or service is marketed. It is mainly defined by age, gender, geography, socio-economic grouping, or any other combination of demographics.

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Target market is defined in terms of :

o Demographic segmentation o Geographic segmentation o Psychographic segmentation o Behavioural segmentation

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Demographic segmentation :

The demographic segmentation divides customers into segments based on demographic values such as age, gender, family size, family life cycle, occupation, education, religion, generation, social class and nationality.

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a. Age and life-cycle segmentation : The consumer’s needs and wants

change with age. Therefore some companies use age and life-cycle segmentation, where age and the life-cycle determine the marketing approach.

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b. Gender segmentation : Gender segmentation is used to

differentiate the needs and wants between men and women due to the fact that men and women have different attitudes toward a product.

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c. Income segmentation : Income segmentation divides the

market into different income groups. It is used in automobiles, clothing, cosmetics, and travel.

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d. Generation segmentation : Each generation is influenced by the

times in which they grow up for example the music, the movies, politics and other significant events characteristic of that period.

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e. Social Class segmentation Social class segmentation divides the

customers according to their preferences in cars, clothing, home furnishings, leisure activities, reading habits.

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Geographic segmentation The geographic segmentation divides

customers into segments based on geographical areas such as nations, states, regions, countries, cities.

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Psychographic segmentation The psychological variables derive from

two principal types of customer: personality profiles and lifestyle profiles.

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Behavioural segmentation Behavioural segmentation is based

on the customers’ attitude toward, use of, or response to a product.

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Technographic Segmentation: This type of segmentation differentiates

people based on technology they use. With technology becoming such an ingrained part of our lives, technographic segmentation becomes all the more important.

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Analyzing our Product and Service:

Write out a list of each feature of your product or service. Next to each feature, list the benefits they provide (and the benefits of those benefits).

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Decisions involved in targeting, including strategy :

which segments to targeting. how many products to offer. which products to offer in which segments.

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Targeting strategy decisions are influenced by:

Market maturity.Diversity of buyers' needs and preferences. Strength of the competition.The volume of sales required for profitability.

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1. Concentrated strategy (Single-segment strategy). One market segment (not the entire market). A single-segment approach often is the strategy of choice for smaller companies with limited resources.

Target Market Strategies

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2. Differentiated strategy (Selective specialization or multiple-segment strategy) : Different marketing mixes are offered to different segments. The product it self may or may not be different - in many cases only the promotional message or distribution channels vary.

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Product specialization. The firm specializes in a particular product and tailors it to different market segments.

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Exemples

Desert Coolers : If your company is selling desert coolers, it is obvious that the target market will be extremely in hot regions of the world and not the cold ones.

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Baby Products:

Marketers selling baby products have to segment their market in terms of age group, but they also have to consider pyschographic segmentation, because sales will depend on the lifestyle of the parents. If the parents have a lavish lifestyle, they will agree to spend money on expensive baby products.

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Cosmetics: Cosmetics are gender-based, exclusively

for men or women, thus, segmentation based on gender will have to be done. However, just dividing the market on the basis of gender is not enough. Lifestyles of men and women come into play, because cosmetics come in all ranges and thus depending on the cost of the product, it will require psychographic and behavioral segmentation.

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o Results of wrong targeting strategy

o Ineffective augmentation and targeting led to wrong product offers,

o inappropriate marketing appeals wrong pricing

No firm can offer single product to satisfy all the segment.

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Conclusion

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