Target market is "a group
of customers at whom an organization specifically aims its marketing
effort." Targeting a market is a well-defined set of a customer whose needs
the company plan to satisfy. The target market and the marketing mix are developed
in relation to the marketing goal shown in the following figure 1
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| Target Market Fig1 |
A retailer's most important
decision concerns the target market. Until the target market is defined and
profiled, the retailer cannot make a consistent decision on product assortment;
store decoration, furnishing; advertising messages and media; price level; and
so on. Also, Wholesalers need to define their target market and not try to serve
everyone. They can choose a target group of the customer according to size criteria
(e.g.only large retailers), they of the customer (e.g.convenience food stores
only), need for service (e.g., Customers who need credit), or other criteria.
Within the target group, they can identify the more profitable customers and
design stronger offers and build better relationships with them. They can
propose automatic reordering systems, set up management-training and advisory
systems,
and even sponsor a voluntary
chain. They can discourage less profitable customers by requiring larger orders
or adding surcharges to smaller ones.
FACTORS OF TARGET MARKET
THE TARGET MARKET NEEDS FOUR
FACTORS.
1.The organization must need the
product or services.
2. The organization must have the
ability to purchase,
3.The organization must be
willing to purchase
4. There must be authority to
purchase.
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Straight and narrow ways of
target markets
Market-oriented managers develop
marketing mixes for specific target markets. This is very different from
production oriented managers who just see a mass market of customers who are
pretty much the same. Target marketers aim at specific "somenodies."
Getting the firm to focus on specific target markets is vital (see fig4
Straight and Narrow ways of Target Markets)
STEPS OF TARGET MARKETING
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| STEPS OF TARGET MARKETING |
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