Target Marketing Concepts in Business

A group of customers with similar needs and wants who might require separate products and/or marketing mixes.

The process of dividing a market into distinct groups who might require separate products and/or marketing mixes

The process of evaluating the attractiveness of each market segment and selecting one or more to target.

The process of developing a competitive positioning for a product and an appropriate marketing mix to appeal to the chosen target market.

A strategy that involves making your product or service stand out from the competition in ways that are meaningful and noticeable to the customer.

This means that the difference you create should be hard for competitors to replicate, it should address a specific need or desire of the target market, and it should create a memorable image or impression.

Companies can create awareness and encourage customers to try their product by differentiating themselves from competitors.

Sometimes, especially in the foodservice industry, differentiating yourself is the only way to compete successfully.

Differentiation can be achieved in various ways - through the product itself, the marketing message, or by building a unique brand image.

Creating a distinct position for your product or service within a specific market segment.

Dividing customers into groups based on their social class, lifestyle, and personality traits. It helps marketers understand their target audience's values, attitudes, and behaviors.

People with similar demographics can have drastically different psychographic traits which can impact their purchasing behavior.

Social class affects how people spend their leisure time and the brands they prefer.

Marketers tailor their products and services to different lifestyle groups. This means understanding the needs and activities of their target audience.

Personality traits influence buying decisions. Marketers leverage personality appeals to connect with customers on an emotional level.

This segmentation groups customers based on their knowledge, attitude, and interactions with a product. It focuses on how customers use and react to products.

Categorizing customers based on special occasions that influence their purchasing decisions. This helps marketers create targeted campaigns for specific events.

Analyzing the benefits that customers are seeking from a product. This helps marketers understand and communicate the value proposition of their offerings.

Dividing customers into groups based on easily measurable characteristics like age, gender, income, or education.

Age and life cycle stage are often used in segmentation, as consumer needs change over time. Companies may target different age groups with specific products or marketing strategies.

While age can be a good indicator, it's not always reliable. Some people may be physiologically older but psychologically young, so it's important to consider other factors.

Gender is becoming increasingly important in segmentation, as companies recognize the growing purchasing power of women. This is especially relevant in areas like travel and hospitality.

Income alone is not a reliable indicator of purchasing power. It should be combined with other factors like lifestyle and geography to create a more accurate picture of a customer's ability and willingness to spend.

Although middle-income customers represent the largest segment, attracting and retaining them can be challenging due to their budget constraints and diverse needs.

Demographic segmentation provides a basic framework for understanding customer groups, but neglecting other factors like lifestyles and values can lead to inaccurate targeting.

Demographic segmentation, while useful, should be considered alongside other segmentation strategies to gain a deeper understanding of your customers and their needs.

A marketing strategy where a company ignores segment differences and targets the whole market with a single product.

A marketing strategy where a company targets multiple market segments with different products or offers for each.

A marketing strategy where a company focuses on a specific, narrow market segment with a unique product or offer. This is common for products with specialized needs.

A marketing strategy where a company targets two distinct market segments with different products or offers.

When a company chooses a smaller, more specific market segment to target with its products or services, offering specialized needs.

This strategy can lead to overall higher sales than Undifferentiated Marketing, but it also increases costs due to research, analysis, and advertising for each brand.

This strategy presents a challenge for companies because it requires adapting to specific needs and preferences.

This strategy provides cost savings due to a streamlined product line, but it may not be effective in a competitive market.

Marketing strategy focused on building long-lasting relationships with customers, aiming for repeat business and loyalty.

A strategy focused on dividing customers into groups based on their readiness to purchase a product. This helps businesses understand customer stages, from unawareness to intent.

A segmentation strategy that classifies customers based on usage patterns, including how often they purchase something, how much they spend, and the reason for their purchase.

A segmentation strategy focusing on the benefits customers seek from a product. For example, they may value comfort, prestige, or low price.

Segmentation based on price sensitivity. Customers are grouped based on their willingness to pay higher prices or seek out the best deals.

A strategy that involves using multiple segmentation bases to create a more targeted and refined customer profile. This helps businesses pinpoint specific customer groups within a market.

The process of identifying specific customer segments within a market and designing marketing strategies tailored to their unique needs and wants.

A marketing approach that involves creating a product designed for a specific group and then personalizing it for individual customers based on their preferences.

Segmentation criteria should be measurable, allowing businesses to assess the size, purchasing power, and profile of their target groups.

The process of tailoring a marketing mix (product, price, promotion, and place) to meet the specific needs and preferences of a particular target segment.

Offering services that specifically address the needs of a target market to stand out from competitors.

Gaining an advantage through hiring and training employees who are more skilled or provide exceptional service than competitors.

Leveraging the unique benefits of a company's location to distinguish itself from rivals.

Creating a unique and distinctive brand image that clearly communicates the product's benefits and positioning.

The process of identifying and selecting key competitive advantages to build a strong positioning strategy.

The strategy of choosing a limited number of key differences to promote to your target market.

Key differences often used in positioning strategies, including quality, service, price, value, and location.

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