LESSON 2.2.

TARGET MARKET
 TARGET MARKET

TARGET MARKET CAN BE DEFINED AS THE POTENTIAL BUYER

OF THE PRODUCT. ACCORDING TO PHILIP KOTLER (P.D), TARGET
MARKET IS A WELL-DEFINED SET OF CUSTOMERS WHOSE NEEDS
THE ORGANIZATION PLANS TO SATISFY. CONSIDERING THAT THE
MARKET MUST BE DEFINED IN TERMS OF SIZE, DEMOGRAPHICS,
GROWTH PROSPECTS, TRENDS AND SALES POTENTIAL MARKET
AND THE TOTAL AGGREGATE SALES OF THE COMPETITORS
MUST BE PRESENTED.
DESCRIPTION OF THE TARGET MARKET
1. DISTINGUISH OR DETERMINE THE CONSUMER FROM THE CUSTOMER.
2. ENUMERATE THE BENEFITS OF THE PROPOSED PRODUCT TO THE TARGET MARKET
3. HOW AND WHY WOULD THE TARGET MARKET BUY THE PRODUCT OR SERVICE?
4. ESTIMATES OF MARKET SIZE, INITIAL TARGETED GEOGRAPHIC AREA, ENTERPRISE`S
TARGETED MARKET SHARE.

BUSINESS-TO-BUSINESS MARKETS INCLUDE:

1. TARGET MARKET
2. FREQUENCY OF PRODUCT PURCHASE
3. TENDENCY FOR REPLACEMENT NEEDS VERSUS EXPANSION PURCHASING PROCESS
4. ESTIMATES OF MARKET SIZE, INITIAL TARGETED GEOGRAPHIC AREA, ENTERPRISE`S
TARGETED MARKET SHARE.
 BUSINESS-TO-CONSUMER MARKETS INCLUDE:
1. DEMOGRAPHIC FACTORS, SUCH AS INCOME LEVEL, AGE RANGE, GENDER,
EDUCATIONAL LEVEL, ETHNICITY OF THE TARGET MARKET;
2. PSYCHOGRAPHIC FACTORS OF THE TARGET MARKET;
3. BEHAVIORAL FACTORS SUCH AS FREQUENCY OF PRODUCT PURCHASE AND
SHOPPING BEHAVIOR OF THE TARGET MARKET.

EXAMPLE:
THE TARGET MARKET OF THE SAID BUSINESS IS LOCATED AT KIDAKU, WITH THE
TOTAL POPULATION OF 999 AND ITS FEMALE POPULATION IS 499. THE WOMEN FROM
ADOLESCENT TO LATE ADULTHOOD ARE THE TARGET MARKET.
THEN, DESCRIBE THE ADOLESCENT AND ADULTHOOD DEMOGRAPHIC,
PSYCHOGRAPHICS AND BEHAVIOURAL FACTORS.
 CATEGORIES OF CONSUMER
1. PRICE SHOPPERS – THIS GROUP IS INTERESTED IN THE BEST DEAL FOR A
PRODUCT.THEY ARE COMMONLY CALLED AS PRAKTIKAL AND PRICE CONSCIOUS.
2. BRAND –LOYAL CUSTOMERS – THIS GROUP BELIEVES THAT THEIR PRESENT
BRANDS ARE SUPERIOR TO OTHERS AND ARE WILLING TO PAY FAIR PRICES FOR
PRODUCTSJUST TO ACQUIRE IT.
3. STATUS SEEKERS – PEOPLE WHO ARE INTERESTED IN PRESTIGIOUS OR CALLED
(SIGNATURE) BRANDS OR KNOWN PRODUCT CATEGORIES AND WILLING TO PAY AT
ANY PRICE.
4. SERVICE OR FEATURE SHOPPERS – THIS GROUP SEEKS A HIGH VALUE ON
CUSTOMER SERVICE AND PRODUCT FEATURES AND WILL PAY FOR THEM.
5. CONVENIENCE SHOPPERS – PEOPLE WHO VALUE NEARBY LOCATIONS,LONG
STORE HOURS AND ARE WILLING TO PAY FOR EASIER SHOPPING.
NEW CONSUMER REALITIES IN 2016
ACCORDING TO THE SURVEY, 72% OF CONSUMERS SAY THEY WILL RESPOND TO
CALLS-TO-ACTION IN MARKETING MESSAGES THEY RECEIVE WITHIN SIGHT OF THE
RETAILER AND 23% OF RETAIL MARKETERS USE SOME TYPE OF GEO LOCATION
MARKETING IN THEIR MOBILE MARKETING.

SEAMLESS SENSATION – THE ONLINE AND OFFLINE EXPERIENCES ARE INTERTWINED

AS CONSUMERS NAVIGATE THEIR DAILY LIVES SEAMLESSLY, RESONATING WITH BOTH
PHYSICAL AND THE DIGITAL REALM. THE CULTURE IS CHANGED. THE LANGUAGE IS
CHANGED. THE PHYSICAL AND DIGITAL WORDS ARE SEAMLESSLY INTERWIND. WHAT
BRANDS SHOULD BE DIGITALLY-FOCUSING ON IN THE UPCOMING YEAR IS SEAMLESS
EXPERIENCE.AUTHENTICITY TAKES A NEW LEAP IN THE INFO OVERLOAD DIGITIZED
WORLD WHERE CONSUMERS ARE EMPOWERED TO DEFINE THEIR OWN VERSION OF
TRUTH.(ADOBO MAGAZINE,ISSUED ON JAN-FEB 2016)
THANK YOU!