Benefits Of Target Marketing For A Business

Target marketing is an important aspect for any business to find the perfect customers. Target marketing can help increase revenue, lower costs and boost efficiency in an organization by making sure to reach your perfect prospects. This guide will review the benefits of target marketing, what are the disadvantages of target marketing, why is target marketing so important, and 3 steps to target marketing.

In this guide, we review the aspects of Benefits Of Target Marketing For A Business, what are the disadvantages of target marketing, why is target marketing so important, and 3 steps to target marketing.

Benefits Of Target Marketing For A Business

If you’ve ever shopped online, you know how powerful targeted marketing can be. For example, when you visit an e-commerce site and search for “vacuum cleaners,” the website might show ads for specific brands or models of vacuum cleaners that match your search criteria. Targeted marketing is also popular offline: When someone visits a store whose inventory is tailored to their needs, they may buy more than they intended to because they feel like the retailer understands them and their interests.

Target marketing is great for consumers, but it’s also beneficial for businesses.

While target marketing is great for consumers, it’s also beneficial for businesses. For example, when you’re a small business and need to make money ASAP, targeted advertising can drive sales right away. If a customer sees an ad that speaks directly to them or their needs (like “get new tires before winter”), they’ll likely make an immediate purchase online or in-store. This is because the messaging resonates with them and has been tailored specifically for them!

In addition to boosting sales right away, target marketing also allows you to concentrate on your customers’ needs and wants. This makes customers more satisfied because they feel like their interests are being taken into account instead of being sold something at random that may not fit what they’re looking for at all (or worse: left behind). It’s important for businesses like yours not only survive but thrive in this competitive marketplace by giving customers what they want while also getting ahead economically by keeping costs down with targeted ads versus blanket ads across multiple mediums without any real knowledge about who will be seeing those ads or where those individuals might be located geographically speaking.”

When a retailer uses market segmentation to identify product preferences, they can tailor their advertising to those subgroups.

When a retailer uses market segmentation to identify product preferences, they can tailor their advertising to those subgroups. For example, if a clothing store wanted to increase sales of sweaters and boots during the winter months, they could create an advertisement targeted at people who live in cold climates and are likely to buy these items. By doing this, the retailer can sell more products without having to invest in expensive advertising campaigns that reach everyone equally.

If you’re selling products, target marketing allows you to concentrate on your customers’ needs and wants.

Target marketing allows you to concentrate on your customers’ needs and wants. It’s well known that happy customers are more likely to buy products they want, be loyal to a company that meets their needs, recommend products they like, and feel appreciated and valued by a company that meets their needs. This means that you’re making it easier for people who have similar interests or lifestyles as your current customers to find out about what you’re offering.

This can also help increase sales if done properly: If someone sees something they like but doesn’t know where else they can get it from then they may just go ahead with the purchase at least once because of the convenience factor – meaning that if this happens once then there could be repeated business down the line due to customer satisfaction!

When a company is more focused, they can grow faster.

When a company is more focused, they can grow faster.

This is because it allows them to:

  • Focus on the right customers
  • Focus on the right products
  • Focus on the right distribution channels
  • Focus on the right marketing channels (and sales channels)

Targeted advertising can drive sales right away.

Targeted advertising can help you reach the right audience.

Targeted advertising can help you find out what your customers want.

Targeted advertising can help you find out what your competitors are doing.

Targeted advertising can drive sales right away.

Generating leads and testing potential buyers is much easier when targeted advertising is in place.

Targeted advertising allows you to find your target audience and test different ads to see which ones work best. You can also use targeted advertising to generate leads when the time comes.

Retailers can use market segmentation to focus on consumers who want the same products they do.

Market segmentation is an approach that helps you to focus on consumers who want the same products you do. It allows you to narrow down your potential customer base by dividing them into groups based on their needs and preferences, then using this knowledge to create targeted marketing messages for each of the groups.

For example, if you sell clothing for women and men, segmentation would help differentiate between female shoppers and male shoppers by identifying which grouping has more money and is more likely to buy from your brand. This way, instead of spending money on advertising all around town in hopes of attracting both audiences at once, a retailer could spend it only where it makes sense: in areas where they know one group will spend more than another (i.e., magazine ads targeting females or radio ads targeting males).

what are the disadvantages of target marketing

Target marketing means selecting a market segment and directing your marketing efforts toward that segment. For example, a home improvement store might target homeowners ages 35 to 55 who make an income of $75,000 or more in Columbus, Ohio. That tightly defined target market could guide all marketing decisions, from message to advertising outlets. But choosing a tightly defined target market offers disadvantages as well.

Target marketing means selecting a market segment and directing your marketing efforts toward that segment. For example, a home improvement store might target homeowners ages 35 to 55 who make an income of $75,000 or more in Columbus, Ohio. That tightly defined target market could guide all marketing decisions, from message to advertising outlets. But choosing a tightly defined target market offers disadvantages as well.

The Wrong Target

When you focus exclusively on a target market, you must be sure it works for your product or service. When you choose one market segment, you exclude others. The ones you exclude could offer you many sales, maybe even more sales, than the one you chose. Remain aware of this potential disadvantage when you focus on a target market, and be prepared to change your tactics if you find you need more sales.

When you focus exclusively on a target market, you must be sure it works for your product or service. When you choose one market segment, you exclude others. The ones you exclude could offer you many sales, maybe even more sales, than the one you chose. Remain aware of this potential disadvantage when you focus on a target market, and be prepared to change your tactics if you find you need more sales.

Small Market Share

The target market you choose may not be large enough to support your business. One characteristic of target markets — their well-defined, limited scope — can work against you if that segment does not contain enough customers. Capturing 100 percent of a small market can still leave you with low sales.

The target market you choose may not be large enough to support your business. One characteristic of target markets — their well-defined, limited scope — can work against you if that segment does not contain enough customers. Capturing 100 percent of a small market can still leave you with low sales.

Ethical Problems

Some businesses receive criticism for targeting certain market segments. For example, outlets who sell lottery tickets in disadvantaged neighborhoods can come under fire for the appearance of taking advantage of desperate people with a promise of riches that isn’t likely to come true. Similar problems could arise for a business selling firearms in a notoriously violent neighborhood. Look at your target marketing to make sure it will not engender potentially harmful publicity.

Some businesses receive criticism for targeting certain market segments. For example, outlets who sell lottery tickets in disadvantaged neighborhoods can come under fire for the appearance of taking advantage of desperate people with a promise of riches that isn’t likely to come true. Similar problems could arise for a business selling firearms in a notoriously violent neighborhood. Look at your target marketing to make sure it will not engender potentially harmful publicity.

Sharing a Market with Competitors

Before selecting a target market, you should examine the competition in that market. You may not be the first one to notice the advantages of a market segment. If that segment is saturated with companies marketing to it, choosing that target market could hinder your sales rather than help them. Look for target markets that can bear additional marketing and support the kind of sales you need.

Before selecting a target market, you should examine the competition in that market. You may not be the first one to notice the advantages of a market segment. If that segment is saturated with companies marketing to it, choosing that target market could hinder your sales rather than help them. Look for target markets that can bear additional marketing and support the kind of sales you need.

Kevin Johnston writes for Ameriprise Financial, the Rutgers University MBA Program and Evan Carmichael. He has written about business, marketing, finance, sales and investing for publications such as “The New York Daily News,” “Business Age” and “Nation’s Business.” He is an instructional designer with credits for companies such as ADP, Standard and Poor’s and Bank of America.

why is target marketing so important

Identifying a target market helps your company develop effective marketing communication strategies. A target market is a set of individuals sharing similar needs or characteristics that your company hopes to serve. These individuals are usually the end users most likely to purchase your product.

Determining Your Target Market

Although it may be time consuming up front, determining a target market allows you to focus your marketing efforts in the most cost effective way possible. Begin by clearly defining your product or service and then defining the person or business that will want to use what you have to offer. Understanding the needs of consumers is essential. You can often discover exactly how you can meet consumer needs through careful market research including running a focus group, scanning industry reviews or doing a market survey.

Craft Specific Messages

Once you have identified a target market you can craft messages that appeal specifically to them. As an example, an interior decorator can tailor and market their services to a wide range of prospective clients. The marketing message will need to be designed to attract either the high-end home owner looking for an expensive make-over or the senior citizen looking to downsize while still retaining some of their prized possessions. The needs are very different so each marketing message must be crafted to reflect how each need will be met.

Focus on Potential

Organizations don’t have the time or resources to be able to reach everyone with a product message. Identifying a target market allows marketers to focus on those most likely to purchase the product. Limiting the population funnels research and budgets to the customers with the highest profit potential.

Reach the Right Audience

Once you’ve identified the target market, consider the target audience — the intended recipient of your advertising message. Many times the buyer of your product may not be the same as the end-user so your message needs to be tailored to the person making the purchases. For example, everyone in the home benefits from laundry detergent, but it is most frequently purchased by women who buy the family’s groceries. For that reason, soap commercials traditionally target moms who want their family in clean clothes.

This strategy is sometimes skewed however. When it comes to toys, kids are the big end users, so it might be more effective to market directly to them. Even though it is their parents who buy the toys, kids are big influencers of how their parents spend money in this area. Messages marketed to kids can drive them to persuade their parents to make purchases on their behalf.

Identify an Under-served Market

Businesses of any size can compete effectively by identifying under-served markets. Rather than trying to reach every customer who could use your product, focusing a marketing plan to fit a smaller and possibly unreached part of the total market can allow you to carve out a niche for your product. By focusing resources on a specific customer segment, a small business may be able to better serve a smaller segment of the market than its larger competitors.

Cost-effective Strategies

Once you know who you are targeting, it is much easier to make decisions on media allocations. If your target market is young women, rather than purchase ad space in every magazine., you can advertise only in those popular with that audience. You’ll save money and get a better return on investment by using a target market plan. Media buys will be more efficient as wasted audience — those unlikely to purchase your product — is greatly reduced.

Lori Hubbard has over 18 years of experience in the marketing and business field with a focus on marketing strategy and small business development. Hubbard holds a Master of Business Administration in marketing from the University of Cincinnati. An avid sports fan, Hubbard has coached high school and club volleyball for over 10 years.

3 steps to target marketing

Target marketing is essential to getting the most from your marketing dollars by reaching out specifically to those who are most likely to buy your products or services; they are your target market or target audience. The three activities of a successful targeting strategy that allows you to accomplish this are segmentation, targeting and positioning, typically referred to as STP.

Defining Target Marketing

According to an Entrepreneur article describing target markets, your target market consists of those people most likely to buy from you, but markets have become so differentiated that it’s not enough to target an age group or any other single factor. Not everyone in any age group is buying the same things; they have many different opinions, interests and needs. An age group may make sense for your marketing purposes, but age can only be one part of it. You must consider many other factors to arrive at your target market.

Identifying Your Target Market

The goal in identifying your target market is to be as specific as possible, down to the most minute details. A brainstorming session with others who know your product works well because of the two-heads-are-better-than-one adage. Another person may think of the product and its purchasers differently than you do and focus on a factor other than age, such as level of education, technical knowledge, where they live or their gender. The new viewpoint makes you think of an additional factor, and so on. Other ways to learn about your market are to study survey data or conduct your own survey and research all you can about who buys your competitors’ products.

Of course, you’d be happy to sell to anyone, but defining your target market doesn’t mean you won’t sell to anyone else, according to an Inc. magazine article; it just means putting your marketing dollars where they are likely to bring you the most results. Defining your niche in the market is a way that small businesses can compete with large businesses. Remember, too, that if you sell more than one product, you may have different – or slightly different – target audiences for each one.

When you’ve defined all you can about your target market or the target audience who will want to hear or read about your product, you may be shocked at the details you’ve uncovered. For example, perhaps you started out thinking your target market was females aged 30 to 50, but from talking with others and doing some research, you now know that age isn’t as much of a factor as that the females have children, own homes in the suburbs of larger cities, or have attended college but not necessarily earned a degree.

Using the STP Marketing Strategy

One of the most effective methods of target marketing is to use the segmentation, targeting and positioning (STP) marketing strategy. First, divide your market into segments of buyers who share certain characteristics. According to Smart Insights, the most common segmentation is dividing the market by four criteria: demographics, psychographics, geographics and behavioral characteristics. Next, in the targeting step, you analyze the segments and determine which one or ones are currently your best target audience. For positioning, you discuss ways to reach the segments you chose, narrow those down by discussing the pros and cons of each, and design a plan of how and where to reach each target market.

Dividing Your Market Into Segments

There are many possible methods of market segmentation; you aren’t limited to demographics, psychographics, geographics or behavioral characteristics, but they are a good place to start. Demographic criteria are based on the data you have on those in your market, including their ages, gender, level of education, occupations, sexuality, interests and family size. Demographics is the most common segmentation because these characteristics most often determine buying habits.

Psychographics is segmentation according to personality and traits, such as values, opinions and favorite activities. For example, people with expensive lifestyles value luxury and carrying, using or wearing high-end designer items. People who are thrifty value a well-priced product but may also look for quality, though they’re not interested in the brand name.

Geographic segmentation is concerned with customers’ locations, which could be based on their country, city and state, or whether they’re urban or rural residents. Sometimes just a ZIP code can reveal a lot of information. The 1980s television show, “Beverly Hills 90210,” made that ZIP code recognizable as standing for wealth, while other U.S. ZIP codes might be known for areas with high levels of poverty or ones where high-tech individuals are known to live.

Behavioral segmentation looks at how customers behave by how they interact with the business. Are they frequent buyers of one item or type of item? Do they usually buy online or in a store? The USC Marshall School of Business advises in its teaching of the STP model that behavioral segmentation also considers whether buyers are frequent customers – in other words, loyal – or occasional buyers. With people using digital applications often to research products and make purchases, businesses can easily track how often a customer uses their websites, what products people are interested in by what they look at, and what they ultimately bought.

Determining Your Targeting Strategy

After you finish the segmentation, it’s time to analyze each segment and determine which to target with your marketing plan. Have all the segments in front of you on one page or a conference room wall so that everyone involved in the process can easily see the description of each segment as you discuss it. Evaluate each segment on:

With your budget in mind, determine which segment or segments make the most sense to target with your marketing dollars.

Positioning in the Marketplace

The last step, positioning, refers to the position your business or product occupies in the mind of your potential customers, as explained on the Wemla website. You may already have a position in mind for your business or products, but if it’s an inaccurate or incomplete one, you’ll want your messaging to change. If your business or products aren’t known to a segment, you need to carefully consider the message you want to convey. It’s important to get your message right the first time, according to Wemla, because once people have established a position on something, they rarely change.

Now that you have identified the target market(s) you’re going to reach out to, craft the overall message about your business or product(s). A well-rounded marketing plan reaches your intended target market in a variety of ways with a consistent message that appeals to them based on your detailed knowledge obtained through the STP method of target marketing.

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