A company cannot focus on all market sectors at the same time. It can only serve a few market sectors.
The areas the company wants to serve are called the target market and the process of determining the target market is known as market targeting.
Market segmentation is the process of separating the overall market into several segments or portions. Once the market is segmented, the company must evaluate each sector and decide how many and which ones to target. In this article, you will learn more about marketing targeting, so stay tuned.
Definition of marketing targeting
Marketing targeting involves segmenting a market and then focusing marketing efforts on one or a few key groups of customers whose desires and aspirations best match your product or service offering. It can be the key to attracting new customers, increasing revenue and making your business a success.
The beauty of target marketing is that focusing your marketing efforts on certain groups of consumers simplifies and reduces the cost of promoting, pricing and distributing your products and/or services, while providing a reference point for all your marketing operations.
Why is marketing targeting so important?
Marketing targeting is crucial because it is part of a complete marketing plan. It influences advertising, customer experience, branding and sales operations.
The following operations can be performed when a company focuses on target market segmentation:
- address a certain group of people directly. When readers can immediately relate to the content, marketing messages reach them more deeply;
- attract and convert qualified leads. You are more likely to attract the right people if the message is addressed directly to the target people;
- increase customer loyalty. The ability to differentiate from competitors by reaching out to consumers on a more intimate and human level fosters more lasting connections;
- improve products and services. Knowing more about consumers allows us to see products and services in a new light;
- distinguish the brand from the competition. When companies stop trying to speak to every customer in the market and instead focus on a smaller portion of that audience, they begin to differentiate themselves from their rivals in their industry.
Marketing targeting strategies
Marketing targeting methods can be broadly divided into several types.
Mass marketing
Mass marketing is the practice of marketing to the entire population using a single approach.
The objective of mass marketing is to make the product known to as many people as possible. A concerted effort is made to reach everyone through mass media such as television, newspapers and cell phones.
For items that are used often, such as toothpaste and toothbrushes, mass marketing is all that is needed.
Segment Marketing
Segment marketing, which is known for its unique targeting technique, focuses on a group of people identified as the target audience. The goal of target marketing is to attract people to products.
For new products entering the market with established companies,this sector marketing works well.
However, this type of specialized marketing is expensive.
Niche marketing
Niche marketing focuses on a certain market segment.
All marketing revolves around this narrow market segment. Luxury items such as Gucci and Armani are examples of niche marketing.
Small businesses with limited production and sales can benefit from niche marketing.
Micromarketing
Micromarketing targets a much smaller population than niche marketing.
The definition of micromarketing is personalized marketing or one-to-one marketing.
Products are tailored to the needs of the consumer and the customer’s preferences and desires are included in the micromarketing techniques.
