How Target Marketing Can Increase Your Profit!

Learn Target Marketing and Increase Profit

It is not possible for a marketer to have similar strategies for product promotion amongst all individuals. Kids do not get attracted towards products meant for adults and vice versa. Every segment has a different need, interest and perception. No two segments can have the same ideologies or require a similar product.

What Is Targeting in Marketing?

Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a specific group of customers within that audience. It defines a segment of customers based on their unique characteristics and focuses solely on serving them.

Instead of trying to reach an entire market, a brand uses target marketing to put their energy into connecting with a specific, defined group within that market.

The types of target markets are often segmented by characteristics such as:

  • Demographics: age, gender, education, marital status, race, religion, etc.
  • Psychographics: values, beliefs, interests, personality, lifestyle, etc.
  • Business Industry: business industry or vertical
  • Geographic Areas: neighbourhood, area code, city, region, country, etc.

Through this strategy of market segmentation, brands get more specific about their target market. They can focus on a small group of customers who will be most likely to benefit from and enjoy their products.

For example, a brand that sells day planners may decide to focus on a smaller, specific target market. Instead of marketing to the masses, they may focus solely on selling planners to female business owners. Or they could choose to exclusively market to high school teachers. Both examples are smaller, more specific segments of the day planner’s potential market.

Target Marketing refers to a concept in marketing which helps the marketers to divide the market into small units comprising of like-minded people. Such segmentation helps the marketers to design specific strategies and techniques to promote a product amongst its target market. A target market refers to a group of individuals who are inclined towards similar products and respond to similar marketing techniques and promotional schemes.

Kellogg’s K Special mainly targets individuals who want to cut down on their calorie intake. The target market in such a case would be individuals who are obese. The strategies designed to promote K Special would not be the same in case of any other brand say Complain or Boost which majorly cater to teenagers and kids to help them in their overall development. The target market for Kellogg’s K Special would absolutely be different from Boost or Complain.

Jordan, a college student went to a nearby retail store to purchase a shirt for himself. The retailer tried hard to sell a nice formal shirt to him but somehow could not convince Jordan. Jordan left the store sad and empty-handed.

Where do you think is the problem?

The problem is neither with Jordon nor the shirt. The retailer, in this case, failed to understand that Jordan, being a college student, was not the target audience for the formal shirt. No amount of convincing helped as the retailer was targeting the wrong audience. The target market for a formal shirt would be office goers or professionals. Funky T-shirts, casual shirts would have worked better for Jordon.

The target market for Zodiac Clothing Company Limited or Louis Philippe would be the office goers whereas the target market for Levi’s would be the school and college kids.

The target market for Cat moss or Ginny and Jony would be kids.

In simpler words, target market consists of like-minded individuals for whom an organization can afford to have similar strategies, promotional schemes and advertisements to entice them and prompt them to purchase the product. Once a company decides on its target audience, it implements various promotional strategies to make a brand popular amongst them.

The basis of Target Marketing

  • Age
  • Gender
  • Interests
  • Geographic location
  • Need
  • Occupation

Why target marketing? (Need for Target Marketing)

  • Organizations can use similar kind of strategies to promote their products within a target market.
  • They can adopt a more focused approach in case of target marketing. They know their customers well and thus can reach out to their target audience in the most effective way.

How to create Target Market

  • The organization must first decide who all individuals would fit into a particular segment. A male and a female can’t be kept in the same segment. The first and the foremost step is to decide on the target market.
  • The next step is to identify need and preference of the target market. It is essential to find out what the target market expects from the product.
  • Once the target market is decided, organizations can decide on the various strategies helpful to promote their product.

Target Market Selection

Target market represents a group of individuals who have similar needs, perceptions and interests. They show an inclination towards similar brands and respond equally to market fluctuations.

Individuals who think along the same lines and have similar preferences form the target audience. The target market includes individuals who have almost similar expectations from the organizations or marketers.

Obese individuals all across the globe look forward to cutting down their calorie intake. Marketers understood their need and came up with Kellogg’s K Special which promises to reduce weight in just two weeks. The target market for Kellogg’s K Special diet would include obese individuals.

Individuals who sweat more would be more interested in buying perfumes and deodorants with a strong and lasting fragrance.

How to select the Target Market?

It is essential for the organizations or marketers to identify the set of people whom they want to target ?. Marketers must understand the needs and expectations of the individuals to create its target market.

The target audience must have similar needs, interests and expectations.

Similar products and brands should entice the individuals comprising the target market.

Same taglines and advertisements attract the attention of the target audience and prompt them to buy.

To select a target market, it is essential for the organizations to study the following factors:

  • Understand the lifestyle of the consumers
  • Age group of the individuals
  • Income of the consumers
  • Spending capacity of the consumers
  • Education and Profession of the people
  • Gender
  • Mentality and thought process of the consumers
  • Social Status
  • Kind of environment individuals are exposed to

Always remember you would never be successful if you try to impress everyone. Be specific

Identify individuals who show similar characteristics. Put them in one group to create target market within a broad market.

Market targeting

The list below refers to what’s needed to evaluate the potential and commercial attractiveness of each segment.

  • Criteria Size: The market must be large enough to justify segmenting. If the market is small, it may make it smaller.
  • Difference: Measurable differences must exist between segments.
  • Money: Anticipated profits must exceed the costs of additional marketing plans and other changes.
  • Accessible: Each segment must be accessible to your team and the segment must be able to receive your marketing messages
  • Focus on different benefits: Different segments must need different benefits.

Why Is Targeting in Marketing So Important?

Targeting in marketing is important because it’s a part of a holistic marketing strategy. It impacts advertising, as well as customer experience, branding, and business operations. When your company focuses on target market segmentation, you can do the following:

  • Speak directly to a defined audience. Marketing messages resonate more deeply with audiences when readers can relate directly to the information. Brands that have a large, varied market of customers often struggle with creating marketing campaigns that speak directly to their audience. Because their viewers are very different, few slogans or stories can resonate with each person on a personal level. Through target marketing, you can alleviate this problem and focus on crafting messages for one specific audience.
  • Attract and convert high-quality leads. When you speak directly to the people you want to target, you are more likely to attract the right people. Your marketing will more effectively reach the people most likely to want to do business with you. When you connect with the right people, you are then more likely to get high-quality, qualified leads that will turn into paying customers.
  • Differentiate your brand from competitors. When you stop trying to speak to every customer in your market and start focusing on a smaller segment of that audience, you also start to stand out from competitors in your industry. When customers can clearly identify with your brand and your unique selling propositions, they will choose you over a competitor that isn’t specifically speaking to or targeting them. You can use your positioning in marketing to make your brand more well-known and unique.
  • Build deeper customer loyalty. The ability to stand out from competitors by reaching your customers on a more personal, human level also creates longer-lasting relationships. When customers identify with your brand and feel like you are an advocate for their specific perspectives and needs, they will likely be more loyal to your brand and continue to do business with you over a longer period of time.
  • Improve products and services. Knowing your customers more intimately also helps you look at your products and services in a new way. When you have a deep understanding of your target audience, you can put yourself in their shoes and see how you can improve your offerings. You can see what features you can add to better serve your customers.
  • Stay focused. Finally, the benefit of using targeting in marketing is that it also serves to help your brand and team. Target marketing allows you to get more specific about your marketing strategies, initiatives, and direction of your brand. It helps you clarify your vision and get everyone in the organization on the same page. You have more direction when it comes to shaping upcoming plans for both marketing and the business as a whole. A focused approach helps you fully optimize your resources, time, and budget.

What You Need Before You Start Target Marketing

Using targeting in marketing serves both customers and brands. It improves product development and operations, and it allows a brand to differentiate itself, stand out, and make a bigger impact. But before you start target marketing, you need something important.

The best target marketing plans start with creating a clear and detailed buyer persona.

A buyer persona is a description of a semi-fictional character that represents your ideal customer. It is a detailed summary of the characteristics, qualities, and habits of a person who is in your target audience.Knowing your ideal audience helps you decide which target markets to focus on. When you deeply know your ideal customer, you can identify ways to segment them into a more defined audience.To create a buyer persona, you need to imagine your ideal customer and describe their:

  • Demographics
  • Professional Roles
  • Values and goals
  • Challenges
  • Sources of influence
  • Buying decisions

As you create a buyer persona, don’t guess at the details that describe your ideal target customer. To be successful at targeting in marketing, use real data and facts to form your buyer persona. Perform research to learn about your ideal customers.

  • Conduct interviews with your former and current customers.
  • Talk to your sales team and find out what trends they see and experience.
  • Track data on your point of sale systems and web analytics.
  • Engage in social listening on social media to see what conversations customers have with your brand and industry.

To be successful at targeting in marketing, use real data and facts to form your buyer persona.

 

Attachments

Related Post

thumbnail
hover

Everything You Need To Know About...

Training is an organized activity conducted to improve the performance of an employee and to bring about a considerable change in the skill...

thumbnail
hover

The Hidden Agenda Of Positioning

Great Lessons You Can Learn From Positioning Market Positioning What is the market position? In marketing and business strategy, market...

Leave us a comment