Target Marketing as a Driving Force for Business Success
Target Marketing as a Driving Force for Business Success
The key factor driving the success of most businesses is use of target marketing. Whether a large retail enterprise, a small fledgling company, or a web-based souvenir shop, identifying the target market for products/services up front is simply good planning.
A target market is a group of consumers with similar traits on which the business decides to focus its attentions and marketing strategies. Target markets can fall into one of these categories: geographic segmentation, demographic segmentation (one or a combination of: age, gender, race ethnicity, income, etc., psychographic attitudes, values and lifestyles, behavioural occasions, level of brand loyalty, and product-related segmentation used with established product/services.
Businesses use various methods in deciding which consumer group to target with their goods and services. Target marketing for age groups, for example is a strategy used successfully by companies offering services, such as: banks, video game electronics companies, book publishers, television network executives, and restaurant chains.
When a person decides that he/she wishes to start a business, the individual should set about conceptualizing a business plan. If the business plan is done carefully, mapping out every detail of procedures and function, the business will have a better chance of thriving.
Another pillar of good planning for a company is the effective use of the 4p's: called the elements of marketing. The 4p's of marketing are: product, price, place, and promotion. The combined use of target marketing and the 4p's of marketing is known as the "marketing mix strategy".
Strategies for reaching identified target audiences:
There are four text-book strategies for reaching the selected target audience with goods and services. These are: mass marketing, differentiated marketing, concentrated marketing, and micromarketing. Internet marketing can now be called the 5th strategy as the majority of businesses today, have websites set-up to reach their consumers and potentially new markets (geographic segmentation).
The fact is that everything affects a person's drive and ability to buy, and those deciding factors will also affect the number of interested persons you will actually convert to customers. Essentially, there will be many persons who may have a slight interest in your product or service, but based on the one of the targeting factors, it may just not be feasible for them to indulge in what you have to offer.
You may have a coat factory and it is doing great in Alaska, and seeing as it is doing so well, you have decided to expand your business and your market base. However you will not think about setting up shop in the Caribbean, because even if the natives think that your coats are very pretty and stylish, the chances of them buying even one is slim to none. The fact is that there geographical location does not call for such an item. Unless, you decide to make short coats from cooler materials and this would be a marketing strategy for bending to the needs of a particular target.
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