| It's important to remember that the focus of
marketing is people. If you're concentrating your efforts
on your product or profit only, you'll miss the mark. The
term target market is used because that market - that
group of people - is the bull's eye at which you aim all
your marketing efforts. So, don't forget that a market
is people - people with common characteristics that set
them apart as a group. The more statistics you have about
a target market, the more precisely you can develop your
strategy. The table below shows some examples of market
segments (or groups).
Type of Market Segment
|
Shared Group Characteristics
|
| Demographic Segment |
Measurable statistics such as age, income,
occupation, etc. |
| Psychographic Segment |
Lifestyle preferences such as music lovers,
city or urban dwellers, etc. |
| Use-based Segment |
Frequency of usage such as recreational
drinking, traveling, etc. |
| Benefit Segment |
Desire to obtain the same product benefits
such as luxury, thriftiness, comfort from food,
etc. |
| Geographic Segment |
Location such as home address, business
address, etc. |
Here are examples of target segments that can be
created using the above table:
- Women business owners between the ages of 25 and
60 earning more than $25,000 annually form a
demographic segment.
- People who drive compact cars due to their fuel
efficiency form a benefit segment.
Be careful not to confuse a geographic market segment
with a place. The market is the people who live in the
Sunbelt area, not the Sunbelt area. This is a common
mistake made by business owners that causes them to lose
a marketing focus on their customers.
Design Marketing Strategies with Your Target Market
in Mind
The reason we're concerned with identifying a target
market is because it makes strategies for designing,
pricing, distributing, promoting, positioning, and
improving your product, service, or idea easier, more
effective, and more cost-effective.
For example, if research shows that a sturdy
recyclable package with blue lettering appeals to your
target market and if you're focused on that target
market, you should choose that type of packaging. If,
however, you're product or profit oriented - rather than
people oriented - you might simply make the package out
of plain Styrofoam because it protects the product
(product oriented) or because it's cheap (profit
oriented).
Here's another example: If you know your target market
is 24- to 49-year-old men who like rhythm & blues,
are frequent CD buyers, and live in urban neighborhoods,
you can create an advertising message to appeal to those
types of buyers. Additionally, you could buy spots on a
specific radio station or TV show that appeals to this
type of buyer, rather than buying general media time to
"kinda cover all the bases." Make sense?
In summary, when you're making marketing decisions and
you say "kinda," it's costing you money. Know
who you are aiming for (your target market) and create a
strategy for a direct hit.
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