Market Targeting
Market Targeting
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
The key steps in target marketing are market segmentation, market evaluation, and product positioning. Market segmentation means dividing mass markets into distinct groups of buyers with relatively homogeneous preferences, attitudes, or behaviors, which distinguish them from the rest of the market.
Second step after Market segmentation is market targeting. Market targeting also known as market evaluation that means assessing the sales potential of each segment and selecting the segments that are most suitable for exploitation. Sales potential is a function of the number of people in the segment, their disposable incomes, and their willingness to pay for product attributes, together with the organization’s ability to serve them.
Indicators of sales potential include size, growth rate, price sensitivity, current usage in the product category, etc. When all segments have been analyzed, the marketer can choose to accept them at five levels: single segment (one product to one segment only), selective specialization (one product to more than one unrelated segments), product specialization (one product to several segments), market specialization (more than one products to a particular customer group), or full market coverage (one or more product to all customer groups).
DEMOGRAPHIC
1. AGE 2. RACE 3. GENDER 4. MARITAL STATUS 5. OCCUPATION 6. EDUCATION 7. INCOME
GEOGRAPHIC
1. COMMUNITY 2. STATE 3. REGION 4. COUNTRY
PSYCHOGRAPHIC
1. LIFESTYLE 2. GROUP
BEHAVIORAL
1. PATTERN OF USE always in air conditioner temperature and make skin dry 2. PRICE SENSITIVITY Moderate price 3. BRAND LOYALTY Same packaging and easy to
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
The key steps in target marketing are market segmentation, market evaluation, and product positioning. Market segmentation means dividing mass markets into distinct groups of buyers with relatively homogeneous preferences, attitudes, or behaviors, which distinguish them from the rest of the market.
Second step after Market segmentation is market targeting. Market targeting also known as market evaluation that means assessing the sales potential of each segment and selecting the segments that are most suitable for exploitation. Sales potential is a function of the number of people in the segment, their disposable incomes, and their willingness to pay for product attributes, together with the organization’s ability to serve them.
Indicators of sales potential include size, growth rate, price sensitivity, current usage in the product category, etc. When all segments have been analyzed, the marketer can choose to accept them at five levels: single segment (one product to one segment only), selective specialization (one product to more than one unrelated segments), product specialization (one product to several segments), market specialization (more than one products to a particular customer group), or full market coverage (one or more product to all customer groups).
DEMOGRAPHIC
1. AGE 2. RACE 3. GENDER 4. MARITAL STATUS 5. OCCUPATION 6. EDUCATION 7. INCOME
GEOGRAPHIC
1. COMMUNITY 2. STATE 3. REGION 4. COUNTRY
PSYCHOGRAPHIC
1. LIFESTYLE 2. GROUP
BEHAVIORAL
1. PATTERN OF USE always in air conditioner temperature and make skin dry 2. PRICE SENSITIVITY Moderate price 3. BRAND LOYALTY Same packaging and easy to
References: 1. Book Principles of Marketing Chapter 2 (Philip Kotler, Gary Armstrong) Company and Marketing Strategy: Partnering to Build Customer Relationships (page 73) 2. http://www.emmagem.com/wp/2012/08/17/beauty-review-johnsons-oxygen-fresh-gel-lotion/ 3. http://www.willamette.edu/~fthompso/ManEX/Sem112_MktSeg/mts.html 4. http://www.jnj.com/wps/wcm/jsp/showData.jsp?q=lotion 5. http://www.johnsonsbaby.com/our-promise 6. http://www.truthinaging.com/body/johnson-johnson-baby-lotions-have-high-risk-profile