Gregory Ciotti once said, “Marketing is an Enthusiasm transferred to the customer”. The world is moving towards rapid digitalization. So, there is an urgent need for the online presence of your business through a website, social media etc. On the other hand, there is a need for an efficient marketing strategy to grow your business curve exponentially. Any product build or service provided is irrelevant if it does not have the proper reach. This is where marketing comes into picture. But, marketing at times becomes costly if not executed properly. Thus, Target Marketing plays a vital role with its cost effective approach and elevates the business curve to great heights.
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What is Target Marketing?
In general, Target Marketing is a process of dividing the total market into sub-markets known as “segments”. Once you divide the market into segments, target your marketing strategies to each of these sub-markets individually. Specific customer groups should be targeted, those who closely match with your products and service offerings. Consequently, when marketing is carried out for a specific group of customers, promotion, pricing and distribution becomes easy and cost effective. This is the beauty of Target Marketing.
Target Marketing Segmentation
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It is important to realize that there are a number of ways in which the total market can be divided into segments. However, depending on the type of product or service your business provides the division of the target market also changes. In general, the three types of target marketing segmentation are:-
1. Demographic Segmentation
The division of sub-markets in Demographic Segmentation is done based on factors such as gender, age, marital status, race, education, religion and income level. It is the most important type of segmentation. It also gives you a proper analysis of how your product and services are marketed. In addition to this, it also caters to efficient stock maintenance and supply chain management at times. For instance, demographic segmentation provides the liquor shop owner the most preferred brand and type of liquor based on the age groups.
2. Geographical Segmentation
In this, division is done based on the geographical location. Depending upon the scope of your business the market can be divided in terms of neighborhood, city, state and country if the business is international. Geographic Segmentation depends on what product or services are needed in a particular geographical area. For example, majority of hotels and restaurants are always present near railway stations, bus stands or airports.
3. Psychographic Segmentation
The term called lifestyle is booming these days in the 21st century. It is an adjective of how a person is living his life. Two things on which the lifestyle of a person depends. First, how educated a person is and other is the amount of money the person has. British Government had conducted a survey based on which lifestyle or social classes are categorized into six different types:-
A – Upper class.
B – Middle class.
C1 – Lower Middle class.
C2 – Skilled Working class.
D – Working Class.
E – Subsistence class.
Psychographic Segmentation divides the market based on these six categories. They basically are divided depending on the choices they make while buying goods or the type of services they prefer. In order to illustrate, upper class people prefer quality over quantity always whereas others prefer quantity over quality in most cases. In particular, the psychographic segmentation is hand in glove with Geographical Segmentation. For instance, luxury car showrooms such as, BMW, Audi, Mercedes etc are mostly present at places where upper class people have their residence.
Online Target Marketing
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Furthermore, once your business acquires an online presence many gates will open to target the market through social media platforms. Most used social platforms such as Facebook, Instagram, Twitter, Linkedin and also search engines like Google through their adsense play a vital role in order to perform target market segmentation. These social media sites contain options to segment the market based on customers’ likes, dislikes, area of interest etc. For instance, Linkedin is business oriented therefore has specific options to segment the marketing campaign based on number of employees, type of industry and geographic location. In addition to this, all the online target marketing is much more cost effective than any other marketing practice with a better reach.
To summarize, after segmentation, market brands get more specific about their target market. It is the best marketing strategy that everyone should include in order to stay up in this market. Target Marketing gives you the strength of directly communicating with the potential customers. Through Target Marketing, once you start engaging with a small but defined customer base your position becomes unique in the market. Ultimately, the demand of your product or service increases and elevates the profit of your business. Target Marketing serves as a satisfying medium between both customers and brands. Above all, it improves product, service operations, and differentiates a particular brand or product to stand out and make a bigger difference in a cost effective manner.