But choosing a tightly defined target market offers disadvantages as well. The challenge, however, is that developing the right marketing strategy can involve a lot of hit or miss, and for small businesses, the costs related to misunderstanding your market can be catastrophic.
Share on Facebook Target marketing means selecting a market segment and directing your marketing efforts toward that segment.
Companies using target marketing are more effective because they reach the right consumers with messages that are more applicable.
Psychographic Analysis Demographic data depict "who" is likely to buy a product or service. That tightly defined target market could guide all marketing decisions, from message to advertising outlets.
A market analysis reveals to the firm what it must change to meet the market's needs more profitably. Acquiring psychographic data requires more effort. The market analysis section of a firm's business plan incorporates market size, growth rate, profitability, cost structure and distribution channels.
Therefore, small firms may opt to use secondary data, which is not customized to their marketing needs. These attributes can include income level, formal education level, geographic location and marital status.
Advantages Gained from a Market Analysis by Helen Akers - Updated September 26, A market analysis involves primary and secondary research methods that reveal where a firm and its products stand relative to its competition. Products One advantage of target marketing is the ability to offer the right products.
Unguaranteed Success A market analysis does not guarantee an accurate diagnosis of a market. A high-end women's clothing retailer would likely target career women with high incomes, for example. A product manager who properly targets her customers knows their age range.
It may not also be possible to have a single market analysis covering all the parameters in the market such as price, demand and consumer preferences.
The Wrong Target When you focus exclusively on a target market, you must be sure it works for your product or service. Such costs can be discouraging and unnecessary. Big data has great value, but accessing that data is expensive, and you have to keep analyzing that data to stay abreast of buyer trends.
Considerations Their are ethical ramifications to consider with target marketing, according to the University of Maryland's University College. The marketing research manager may hire a research agency to conduct phone surveys, which can costs tens of thousands of dollars.
For example, a small toothpaste manufacturer may introduce whitening strips for people 35 and over. An analysis regarding the firm's strengths, weaknesses, opportunities and threats called SWOT analysis reveals how the firm is perceived internally and externally.
The process of communicating that vision to your audience is the essence of branding.Jan 09, · A target market analysis is a study you do of your potential customers. Knowing how to do a market analysis will enable you to figure out exactly who you will market and sell to. Jun 27, · About the Author.
Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing. In this article, we'll look at the Segmentation, Targeting and Positioning (STP) Model*, an approach that you can use to identify your most valuable market segments, and then sell to them successfully with carefully targeted products and marketing.
Segmenting and Targeting Your Market: Strategies and Limitations Abstract [Excerpt] Almost any marketing textbook will tell you that the key to successful marketing can be summed up.
Target marketing means selecting a market segment and directing your marketing efforts toward that segment. For example, a home improvement store might target homeowners ages 35 to 55 who make an income of $75, or more in Columbus, Ohio.
Target marketing is a three-step process.
The first step is to describe and profile distinct customer groups -- market segments -- that may respond to different product or service offerings or to a unique communication message and media mix. The second step is to select one or more of these market segments for targeting.Download