Targeting is the most intentionally or unintentionally used strategy by individuals and businesses in all professions. Targeting in marketing has much more to it than only aiming at the relevant market segment for better sales. Let us understand the concept of targeting in marketing parlance.
The Purpose: After market segmentation is done based on various parameters like demographic, psychographic or behavioural, the next step in developing an effective marketing plan for a company is to decide, which segment of the market to Target. There are many questions at this stage, which a business has to answer before moving forward:
- Size of the segment
- Growth of the segment
- Sales potential
- Attainable market share
- Brand loyalty
- Micro and Macro factors affecting the market etc
The above mentioned questions can be answered with effective market research and analytics studies. Also before targeting a particular segment the business has to do its own SWOT(Strengths Weakness opportunities and Threats) analysis as well.
The Approach: certain pointers through which, business can better plan their marketing mix (Product, Price, Place, Promotion) and efforts to minimise chances of failure and increasing the probability of success are by understanding whether:
- The segment being targeted is in line with the companies objective, goals, mission
- Does the product has a USP(unique selling proposition) to offer in that segment
- Distribution channels
- Sales and support resources
- Impact on brand image and many more
Targeting Strategies: The business has to choose from any one of the following targeting strategies to concentrate and develop their overall marketing strategy around it:
Single Segment: Single segment strategy or concentrated strategy is offering one marketing mix to one segment, it is usually used by start-up companies.
Selective Specialisation: It is a multi segment strategy which is also known as differentiated strategy wherein, different marketing mix is offered to different segments.
product specialisation: In this strategy the business specialises in a product and caters to different market segments. for example Titan Watches have segmented the market based on Age and Income groups and has targeted the products with different marketing mix to all age groups and income classes.
Market specialisation: A firm specialises in a particular market segment and offers a variety of products. for example Johnson and Johnson baby products has got a huge product line for baby care segment.
Mass Marketing: This strategy is used by companies to target the entire market by offering a single marketing mix to all segments or by offering different marketing mix to different segments. For example Nokia mobile handsets.
View Point: This dimension of marketing has to be given undivided attention as it involves a lot of immaculate planning and precise decision-making. Because, if we cannot aim for the right target, where is the question of hearing the impact.