Target market

 Definition: The selection of potential customers to whom a business

wishes to sell products or services.
 To identify the target market :
o Segmentation – Demographic, This segment involves
categorization of customers based on factors such as age, income,
family size, gender, education . Geographical, based on the region
Behavioral , clubs factors like brand loyalty and value of quality.
Psychographic people's interests, life styles and personalities.
o Targeting - Market specialization, Product specialization, Selective
specialization, Single-segment, Full market coverage
o Positioning -customer targets, which are the product of the
segmentation study. competitor targets, which are a product of
the analysis of external environment. competitive advantage
which is also a product of the environmental analysis. Example:
Mercedes is positioned for luxury segment,
Volvo is positioned for safety.

http://www.businessdictionary.com
 SEGMENTATION
 SEGMENTING THE MARKET
o Demographic Segmentation: This segment involves
categorization of customers based on factors such as age,
income, family size, gender, education, nationality, race, etc.
o Geographical Segmentation: segmentation based on the
region is important while dealing with specific products like
desert coolers, fur coats, blankets, snow boots, raincoats, etc.
the climatic conditions will determine one's target area.
o Behavioral Segmentation: This form of segmentation clubs
factors like brand loyalty and value of quality.
o Psychographic Segmentation: This type of categorization
involves clubbing of people's interests, life styles and
personalities.

By Priya Johnson Published: 4/7/2010

 TARGETING
 Single-segment strategy - also known as a concentrated strategy. One
market segment (not the entire market) is served with one marketing
mix.
 Selective specialization- this is a multiple-segment strategy, also known
as a differentiated strategy. Different marketing mixes are offered to
different segments.
 Product specialization- the firm specializes in a particular product and
tailors it to different market segments.
 Market specialization- the firm specializes in serving a particular market
segment and offers that segment an array of different products.
 Full market coverage - the firm attempts to serve the entire market.

2002-2010  NetMBA.com
 POSITIONING
 According to Brooksbank (1994), the positioning strategy
should include three components:
o customer targets, which are the product of the segmentation study.
o competitor targets, which are a product of the analysis of external
environment.
o competitive advantage, which is also a product of the
environmental analysis.
 In developing the positioning objective , Ries (1996) is
concise and clear: "positioning is not what you do to the
product, but what you do to the mind.“
 Example: Mercedes is positioned for luxury segment,
Volvo is positioned for safety.
Eureka Facts, the Smart Marketing
Information. BY: JORGE A. RESTREPO
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