Target Marketing - Term Paper Example

? The Arts of Target Marketing Introduction Target marketing is not all about breaking a market into various small segments and attracting the attention of the marketers confining their focus on a few key sections of the market such as competitors and price among others. The implication of target marketing suggests that various considerations should be taken into account with the purpose of identifying the customer groups who are to be targeted. The approach helps in preparing appropriate marketing efforts for the effective implementation of marketing strategies developed. It is worth mentioning that ‘Marketing’ is termed as the art of creating wants among people who gradually turns out as the potential customers of the product and/or services rendered (Kotler, 2011). Identification and segmentation of such customer group as the target is one of the fundamental tenets of target marketing (Cahill, 1997). According to Smith (1956), segmentation of markets is focusing on customers with similar interest to that of the marketer, so that it becomes easier for the organization to develop beneficial communication and thus satisfy the customer need effectively. Target Marketing Approach Customers’ demand varies from one group to the other. Thus, the identification of these demands emerges to be quite challenging for the marketers implementing the target marketing approach. After identifying customer demands, marketers develop the product and various marketing strategies to satisfy the demand of the particular customer group(s) targeted. Thus, target marketing helps the company to identify their most potential customers. With this concern, marketers tend to emphasise on various aspects of market and human psychology which define the satisfaction and demand of targeted customers. Furthermore, with the assistance of target marketing, strategies are developed to offer the products and/or services according to the customers’ demand which in turn boosts customer satisfaction. Therefore, target marketing assists the organisation to attain additional customer satisfaction rewarding higher loyalty and competitive advantages, although it initially deals with a concentrated group of customers (Smith, 1956). The motto of target marketing is to identify most viable segments focussing on which the organization can attract maximum number of customers and retain the valuable customers by satisfying their demands. It is in this context that target marketing can assist organisations in gaining sustainable growth (Bragg, 2005). The main reason for focusing on certain specific customer groups who have been targeted is to develop a marketing mix strategic alliance that can satisfy the customer needs in the best possible way. Marketing mix is so prepared that it supports the strategies of target marketing. Target marketing approach can be highly beneficial if marketing mix is prepared with great attention which also helps in enhancing the competency of the organisation to a large extent. Thus, supreme customer value is ought to be achieved with the benefits provided by the marketing mix which further can prove to be very crucial for target marketing approach (Bragg, 2005). It is worth mentioning that customers’ interests are given the maximum preference while preparing target marketing strategies. Marketers pay keen attention in selecting the target market. The process is initiated when marketing experts analyse different characteristics such as demographic and psychographic qualities possessed by the potential customers. Demographic analysis consists of age, geographic location, gender, earning capacity, education level and relationship status that can influence the demand of the customers. Similarly, psychographic analysis includes offering price of the products; convenience provided by the product, how safe the product can prove to be, availability of the product i.e. how far the customers need to travel to make the product available and so on which defined the satisfaction level of the customers (Restrepo, 2008). Target marketing helps in achieving higher customer satisfaction emphasising on the development of the product and/or services fundamentally on the basis of the customers’ interest. This also helps in analysing the current market trend that can prove to be helpful from long-term perspectives. Analysing the current trends of the target market, changes in the customer’s perception can be identified easily that would assist in further development of effective strategies (Restrepo, 2008). Most of the organizations executing the approach of target marketing adopt strategies such as product differentiation, which provide them with an advantage over their competitors. Thus, selection of market based strategies can also be referred to as target marketing. It is in this context that market segmentation can be stated as a result of adaptive strategies (Restrepo, 2008). It was suggested by Wright that targeting and segmentation are most commonly used as popular marketing and competitive strategies. These strategies are accepted by many organizations and are defensive too, provided it is designed with proper care and attention. With the implication of target marketing a company enjoys the opportunity to develop expertise in that particular segment (Cahill, 1997). Implications of Target Marketing Target marketing involves implementation of the strategies so that it can obtain effective results. Thus, it becomes quite vital for the marketing experts to obtain adequate knowledge about the market situation as well as the later affects associated with the application of target marketing. It demands tremendous conceptual and practical knowledge to identify the segments with due consideration to the organisational strengths and its weaknesses (Dacko, 2008). Companies need to organise and carry out research for obtaining satisfactory results in respect to identify the most potential customer group aimed at the identification of their preferences and demands. Experts from different marketing departments of organizations can be hired to conduct the research. Target marketing is also considered as one of the most important tools of marketing to gain efficiency in sales and branding as well. Target marketing helps an organization to flourish in its market providing it with higher competitive advantages and sustainability. It tends to develop loyalty among the valuable customers by developing the products and/or services adhering to the preferences of the targeted customer groups. Therefore, target marketing can be of huge support in generating profits for the organizations and also in contributing to its sustainable growth (Dacko, 2008). Conclusion Kotler (1991) unambiguously stated that target marketing is one of the best ways of approaching to market-oriented problems. Target marketing is not limited to the division of small segments of market. It has a boarder view and numerous advantages that are considered to be quite vital in today’s contemporary business environment. It is worth mentioning that target marketing can be expanded gradually focusing on greater circle of population from a particular concentrated customer group. Notably, it is fundamentally required that the targeted customer groups or market shares similar interests or else it shall be quite challenging for the organisation to deal with the diversified set of interests and preferences (Cahill, 1997). Cosby stated, “I don't know the key to success, but the key to failure is trying to please everybody” (Bragg, 2005). Thus, satisfying each and every customer’s needs specifically to earn their preferences shall in turn largely hamper the organisational operations and adversely affect its competency as well (Bragg, 2005). References Bragg, R. (2005). Center for Profitable Agriculture. Target Market Identification & Development. Retrieved from http://cpa.utk.edu/pptpresentations/agri-tourism/targetmarketpres2-04.pdf Cahill, D. J. (1997). E-marketing. Target Marketing and Segmentation: Valid and Useful Tools for Marketing. Retrieved from http://www.emarketing.net.cn/upload/file/2008/05/13/231210691273732.pdf Dacko, S. G. (2008). The advanced dictionary of marketing: putting theory to use. Oxford University Press. Kotler, P. (1991). Marketing Management: analysis, planning, and control. Prentice-Hall. Kotler, P. (2011). Marketing Insights from A to Z: 80 Concepts Every Manager Needs to Know. John Wiley and Sons. Restrepo, J. A. (2008). Eureka Facts. Segmentation – Targeting – Positioning. Retrieved from http://www.eurekafacts.com/STPArticle.pdf Smith, W. R. (1956). Product Differentiation and Market Segmentation as Alternative Marketing Strategies. Journal of Marketing, Vol: 20, pp. 3-8. Read More