Docstoc

Target Market

Document Sample
Target Market Powered By Docstoc
					 Chapter 11
Target Market
What is a Market/Target Market

• A group of people who have a
  demand for a product.
• The particular group that you are
  interested in reaching
• Example Teens, 25-44 year old
  males, and senior citizens
  Why do Businesses choose a
       Target Market?
• Identifying potential customers
 for your business, product or
 service can be difficult as people
 are constantly changing, but if
 you know your target audience
 you can better learn how to
 market to them.
 Example of A Target Market:
• Al’s clients are parents with young children, many from his
    daughter’s preschool. Al sends a quarterly newsletter to his
    clients. Because he focuses on a target market with
    common needs, he is able to select
     articles that have almost universal appeal to that market.
•   His newsletter includes one article that discusses practical
    information relevant to his clients’ situation but has little to
    do with his products and services. For example, one month
    he included an article on toddler car seats, written by a
    local consumer advocate. Another article will discuss
    something relevant to the products and services Al provides
    as a financial advisor such as education planning. His
    clients appreciate both types of information. Al’s
    newsletters help cement his relationship with his clients.
Who is the target market
for these products?
1. OLD SPICE DEODORANT
2. COVER GIRL MAKE-UP
3. TI MUSIC
4. NY GIANTS SWEATSHIRTS
5. LEXUS
What is Market Segmentation?

• Uses specific characteristics to analyze
 your market by breaking down a larger
 target market into smaller segments.
  –Demographics
  –Psychographics
  –Geographics
  –Buying Characteristics
  Draw Picture of Segmentation
What are Demographics

• Age
• Gender
• Location
• Education
• Income Level
• Marital Status
• Household type
What are Psychographics

• Needs: Security, Love
• Values: Status, Success
• Buying Styles: Fads, Price
• Culture: Religion, politics
• Interests: Recreation, shopping
Psychographics (attitudes)
examples

•       Need for status
•       Role of money (does it buy material
     things, self-esteem, etc?)
•       Ethics/"moral compass"
•       Risk-taker vs. conservative
•       Spendthrift vs. hoarder of money
•   And when the target audience is identified, you'll
    then have an idea of what your key message
    should be and how to convey it.
What is Market Research

• A process designed to identify solutions to
  a specific marketing problem. Example,
  identifying which products to sell.
• Two Types:
   – Primary – Surveys, Focus Groups
   – Secondary – Internet, Government
     Sources
Types of marketing research
• Marketing research, as a sub-set aspect of
  marketing activities, can be divided into
  the following parts:
• Primary research (also known as field
  research), which involves the conduction
  and compilation of research for the
  purpose it was intended.
• Secondary research (also referred to as
  desk research), is initially conducted for
  one purpose, but often used to support
  another purpose or end goal.
By these definitions, an example of primary research
would be market research conducted into health
foods, which is used solely to ascertain the
needs/wants of the target market for health foods.

Secondary research, again according to the above
definition, would be research pertaining to health
foods, but used by a firm wishing to develop an
unrelated product.
The Research Process

• Identify a need or problem
• Obtain Primary and Secondary Data
• Organize Data
• Analyze Data
• Recommend Solutions
• Implement a plan of action

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:10/7/2012
language:English
pages:13