What is targeting the market?
The second step in the product promotion process concerns market targeting concerns the selection of a particular group or a small set of groups to which the company will advertise. It is based on the idea that because it is not really possible to do or do something that pleases everyone, the company must specialize. Companies choose an advertising group that will strengthen their brands, as well as to get the notion of potential sales for production or financing. Three main approaches can be used to do so: universal, selective or concentrated. It is common for the organization to reconsider its target groups and related campaigns over time, because the markets are always somewhat flexible.
Definition and differentiation
market targeting is the second of three steps to promote the product - the other two are segmentation and location. Together these phases are sometimes called STP. While segmentation divides the whole market into different groups, the target is to choose exactly which one of the groups will focus on advertising efforts. Once a company fromCustomers on which they will concentrate will place their products or services specifically for this group. People sometimes use this term to refer to the whole set of STP processes, causing some confusion.
The main principle
The concept of the main concept of this phase of product promotion - and the STP processes as a whole - is that the company can never sell everyone successfully. The needs, wishes, beliefs and habits of people around the world are so diverse that it is virtually impossible to create a product or service that is truly universal for all. The focus of efforts on only one or a handful of groups is therefore necessary for connecting with customers and complete sales.
Purpose
The main reason for the organization is using targeting to the market is more of its brand's strength. When a company knows exactly to whom it will be sold and what makes these individuals to buy, it is better able to create advertising campaigns thatThey effectively communicate the brand message. In the end, this usually ends in increasing sales, increasing revenue and profits.
Organizations also use these methods when they want to get an idea of how much they sell. These predictions are particularly important for purchasing managers who are responsible for buying everything the company needs to operate and inventory managers to monitor what the organization has at hand to meet consumer requirements. It also depends on the supervisors of production, who must plan operations based on what the leaders and inventory management.
Sales related estimates are sometimes necessary for an enterprise to obtain initial financing from banks or investors. By displaying a selected group and how many transactions it is likely to have this sector, investors and banks have a better concept of how great their investment could be. It also shows that the company thoroughly invented its platform and advertising schemes and financiers consider it a good sign that OrgaThe west is serious enough to succeed.
undifferentiated approach
is one of the ways to manipulate the selection of the target group is an undifferentiated approach. The basic concept is that the product or service has a broad attraction that exceeds factors such as age, gender and location. Instead of trying to adapt to the strategy for generating sales within one or two groups of consumers, the company uses a campaign aimed at gathering customers from all areas of life. This approach maintains the number of potential buyers high, but it is difficult to think of how to attract advertising to many different kinds of people.
DIFFERENCED ACCESS
market targeting can be alternatively selective non -differentiated. With this approach, business identifies two or more specific groups of consumers who are highly likely to become loyal customers. Efforts focus primarily on creating a relationship with those identified consumers. SelEctual methods often include the creation of specific programs that talk about the needs of targeted groups, although the goods and services provided are basically the same for all programs.
Concentrated Access
The third approach is or concentrated marketing. Here, business identifies only one specific group of consumers, which is very likely to generate enough income to achieve profit. This may include finding a niche of consumers that are overlooked, or the development of goods and services that attract a larger consumers segment by offering something that competition does not. This strategy has become less popular because companies have learned that the presence with multiple groups usually creates more sales. Using concentrated Technique is risky because the inability to sell a single selected group can force society to completely redefine or even turn off.
flexibility and change
what people want, think and do the procedureEm time, so markets are never quite static. In addition, as soon as the company has been in the segment for a long time, it will reach a point where many other new customers are simply not available to attract. In order to maintain income and profits in these contexts, companies often modify advertising campaigns that have their target focus for their current target groups over time or if necessary. People can therefore see targeting the market as a flexible process that requires regular reassessment.
advantages and disadvantages
Overall, selecting a limited number of target groups provides a degree of focus that makes most of what the company does, making more cost -effective operations. This efficiency is not Completly free. Segmentation and finding which group can cause the highest number of sales require a huge amount of research that businesses must spend money to complete.