Benefits of Targeting a Market.
Marketing is necessary for products. Proper marketing is important since it increases the sales of products and hence increases the profits. There are very many marketing strategies that can be used by a given business entity. These methods have different success rates. Targeting a specific group of customers is one of the effective ways of product promotion. Emphasis are focused on the customers most likely to purchase the products. All the efforts will, therefore, be put on the target market to maximize on them.
This form of marketing is more reliable to the small business enterprises. It is a very effective strategy since there are an assured returns unlike the other broad marketing mechanisms. The businesses employing this type of marketing enjoy numerous benefits. First and foremost a business can concentrate more on the features of their products that are more important to the target market. This will provide this group with all the reasons to purchase the products since they are specific to their needs and desires. The overall effect of this strategy is the increase in profits.
Secondly, communication is enhanced once a business has spotted their target market. Communication with customers may be done whether in written form or verbally. Addressing of the customers queries can be done via these channels. Feedback from the customers can also be received. Fixing of a raised problem, therefore, becomes easier. These advancements will enable the business to meet the customers’ expectations. This will result to more reliable and loyal customers. At the end, the number of customers influenced by the loyal customers will increase.
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Some of the advantages of targeting a market are described above. However for this strategy to work, there are certain characteristics that are associated with targeting market. Geographic target market is one such characteristic. This means that the consumers of a given product are located in the same location. It may cover a town, a city or even a state. Some products do well in some regions better than others. A second example is the demographic or socioeconomic target market. Age group, gender, level of income and education level falls under this category. The target market of the product is the group that is most likely to purchase their products.
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A target market can also be defined as a behavioral target market. The degree of loyalty is a major concern in the behavioral target market. Businesses just use ways to award loyal customers. This may include measures such as giving discounts to the customers depending on how much they spend on their purchases. And finally, a market can be targeted by product related segmentation. The focus is on customers owning certain products. For instance, a business can sell computer accessories to computer owners. Creation of a more specific target campaign, decreasing the number of competitors and increasing sales are the importance of product related segmentation.