Targeting strategy, which stands for market segmentation, targeting, and positioning in marketing, is an important way of doing business. The process of finding the relevant target market and target audience to whom a corporation wishes to sell its products is known as targeting. Any product or service will not be useful to everyone. As a result, businesses must concentrate on the people they wish to target. As previously said, targeting is the process of making a decision based on the segment’s attractiveness. The targeting strategy entails segmenting the market, selecting the most relevant segments, and identifying the products that will be supplied in each segment.
A company with many products can decide whether each segment should receive a generic product (as in mass marketing) or a personalized product (as in niche marketing) depending on the market’s diversity, maturity, amount of competition, and estimated sales volume. A successful targeting plan aids a company in achieving targeted sales growth, improved promotional strategies, and strong client loyalty, among other things. As a result, any marketing firm’s targeting approach is its foundation. Most businesses do not choose all of the segments in a market to operate in; instead, they target one or a few of the recognized segments.
The selection process of the target market is as follows.
Examine relevant market segments
Following the examination of market segment profiles, a marketer is likely to find numerous relevant market segments that require additional investigation and to rule out some categories. In this step, one should look into a few key factors.
Estimation of sales
Each segment’s anticipated cost association
Develop a market segment profile
A market segment profile highlights the distinctions between people and organizations in different segments and describes the similarities among potential customers within a segment.
Decide the segmentation method to use
Consumer market segmentation variables are as follows.
Variables in demographics
Characteristics of different individuals
Variables that affect behavior
Choose a certain market to target
The final stage is to decide which market one wants to go after. This stage is influenced by a variety of factors, including the opportunities and risks that segmentation presents.
After selection, a company or organization that sells a variety of goods and services can decide whether to launch a general product (as in mass marketing) or distinct products for different market groups (as in multi-segment marketing) based on the demands and behavior of each market segment.
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