Transcript 3. Target marketing - Portlethen Academy

MANAGEMENT OF
MARKETING
TARGET MARKETING
LEARNING INTENTIONS/SUCCESS
CRITERIA
LEARNING INTENTIONS:
I understand the role of
market segmentation and
target marketing in the
marketing activities of an
organisation
SUCCESS CRITERIA:
 I can explain what market
segmentation is
 I can give examples of
market segments
 I can explain how market
segments allow target
marketing to take place
 I can explain why target
marketing is better than
mass marketing
MASS v TARGET MARKETING
If you have a product that everybody in the market
is interested in buying or consuming eg bread, chocolate,
milk or soap then you are selling to the MASS MARKET.
However, some customers are interested in buying certain
types of product eg females like to buy cosmetics whereas
men are more interested in buying car accessories.
These types of product can be targeted at the type of
people who regularly buy them by SEGMENTING THE
MARKET.
MARKET SEGMENTATION
This involves using market research
information to split the consumers in your
market into SEPARATE and IDENTIFIABLE
groups (also known as SEGMENTS) with
SPECIFIC WANTS.
MARKET SEGMENTS
Consumers can be split into groups (segments) using the
following characteristics:
• AGE – children want different products compared to
adults
• GENDER – men want different products compared to
women
• INCOME – people with a high income will buy different
products compared to those on a low income
• OCCUPATION – products can be marketed to go with
certain jobs eg stethoscope for a doctor or nurse
MARKET SEGMENTS CONT’D
• RELIGIOUS OR CULTURAL BELIEF – people with
certain religions buy certain products eg Halal meat for
people who are Muslim
• GEOGRAPHICAL AREA – people in different countries
or areas of the same country have different product
preferences and spending habits
• LIFESTYLE – many people have a sporting lifestyle and
buy products associated with this
WHY IS MARKET
SEGMENTATION IMPORTANT?
When businesses know about the various
segments within their market, then they can try
and meet the different wants of each segment by
dealing with each of them in a separate suitable
way eg advertising the products in appropriate
places that potential customers will look or
packaging the product differently.
This is known as TARGET MARKETING.
TARGET MARKETING
EXAMPLE 1
Coca Cola differentiates its products to
different market segments:
DIET COKE for health conscious women
COKE ZERO for health conscious men
CAFFEINE FREE DIET COKE for children
FLAVOURED COCA COLA for other soft
drinkers
TARGET MARKETING
EXAMPLE 2
Target markets may be smaller, but prices
can be higher.
http://news.bbc.co.uk/1/hi/8151011.stm
TARGET MARKETING BENEFITS
The benefits of target marketing are:
• Increased customer satisfaction as
individual needs and wants are being met
• Finding new markets to target thus
increasing the number of customers and
sales income
• Customer loyalty can be maintained more
easily
TARGET MARKETING COSTS
The drawbacks of target marketing are:
• INCREASED COSTS (having lots of
different products to satisfy consumers
can be costly)
• COMPLICATED TO MANAGE (many
different products can be hard for
businesses to keep organised)
TASK
• Complete Worksheet 25 in your jotters