Transcript Setting the Target Market

SETTING YOUR TARGET
MARKET
Setting the Target Market
• The ‘target market’ for a product is the type
of person you are hoping to attract to buy your
product.
• Niche Market – aiming a product at a small
group of people (they will have something in
common with each other) e.g. a sports car.
• Mass Market – aiming the product at all
people (the mass market) e.g. Soap powder.
• What will your café do?
Niche Market or Mass Market
•
A niche market product will
aim at a certain type of person,
e.g.:
• Age Group
• Gender
• Socio-economic group
• Income group
• Lifestyle group
A niche product is often aimed at a
gap in the market – i.e. where
nothing or not enough exists to
cater for these people already.
• A Mass Market product
appeals to all people, but there
will be lots of competition from
other products
1. Explain if you are
targeting a niche
market or a mass
market with your café.
2. Explain why you have
chosen this market
3. Explain how your café
will appeal to this
group
4. Explain why you think
this type of café will be
successful
Marketing Mix
•
•
•
•
Product
Price
Place
Promotion
Product
“The good or service being
produced”
• What is the product?
• What is the product mix?
(combination of products sold)
• What is the range of products?
(group of similar products e.g.
number of different burgers)
Price
Pricing Strategies:
 Cost Plus Pricing – adding a mark up to the cost of
production.
 Competitor based – charging the same price as
competitors (the market price)
 Skimming – high price initially. For new and unique
products.
• Penetration – charging a low price to get a foothold
into the market. New products only.
• Discrimination – different prices to different
customers
Price
What influences pricing decisions?
Objectives
Production costs
Position in life cycle
Marketing mix
Target market
Customer perceptions
Competitors prices
Place
Means by which products are made available
to customers
Considerations:
Selecting a distribution channel wholesaler, retailer, direct to consumer.
Choosing right sales outlets – maximum
outlets or limited distribution?
Does it fit with the marketing mix?
Promotion
• Marketing activities to make consumers
aware of the product and persuade
purchase
Methods:
Advertising – TV, radio, billboards,
leaflets, brochures, mailing
Sales Promotion – coupons, money off,
loyalty cards, point of sale, free gifts,
samples, competitions
Promotion
Methods continued
Merchandising – point of sale tactics,
display stands, adverts
Public Relations – Charity donations,
sponsorship, public visits, press
relaeases
Personal Selling – sales presentations,
samples