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Almost every business has to decide who its target market is. This decision is essential, as it will dictate most of your marketing decisions. This blog post will discuss eight different types of market targeting that you can use for your business.
Remember that there is no “one size fits all” approach to this; you must determine which strategy works best for you and your customers. But with the correct information, you can make an informed decision about target customers and start seeing results!
There are numerous ways to define market targeting. In general, market targeting is the process of identifying and segmenting a target market and then designing a marketing mix that meets the needs of that market. Market targeting aims to select the most promising group of customers to focus on and then tailor the marketing mix to their specific needs. Several different approaches can be taken when it comes to market targeting.
Why is Market Targeting Important?
A target market is a group of people on whom a business has decided to focus its marketing efforts. This group can be defined in some ways, including by age, location, gender, occupation, and interests. There are many benefits to defining a target market. First, it can help businesses save money and resources by targeting only those consumers who are most likely to be interested in their products.
Second, it can help businesses better understand the needs and wants of their target consumers. Lastly, it can help companies to develop more effective marketing strategies. For these reasons, target markets are essential for businesses of all sizes.
What are the types of Target Markets?
There are four main types of target markets:
A geographic target market is a term used to describe the process of identifying and targeting consumers in a specific geographic location. This can be done for a number of reasons, including increasing sales, reaching new customers, or entering new markets.
There are many ways to identify and target a geographic target market. One standard method uses target market segmentation, which divides a larger market into smaller, more manageable segments. This can be done based on many factors, including location, demographics, and consumer behavior.
Another method for targeting a geographic target market is to use geotargeting. This is a process of using location-based data to target consumers in a specific area. For example, businesses can use tools like Google AdWords and Facebook Ads to target consumers in specific geographic locations as we show above.
The demographic target market is the group of people who are most likely to buy your product or service. To identify your demographic target market, you need to consider age, income, location, and lifestyle. Once you know your target market, you can start marketing directly to them.
There are several options for reaching your target audience. You can use traditional marketing channels like television, radio, and print advertising. Or you can use more modern methods like online advertising and social media marketing. Whichever way you choose, make sure you target your message to the right people.
For example, If a firm sells kitchen products, it should develop a target market strategy for Women aged 20-50.
Psychographic target markets are those segments of the population that can be divided based on psychological factors. These factors can include opinions, attitudes, values, interests, and lifestyles. This information can then be used to create more effective marketing campaigns that appeal to the specific target market needs and wants of the target market.
One of the best times to use psychographic segmentation is when you want to target a specific market for your product or service. For example, if you are a florist, you may want to target people who have upcoming birthdays. If you are a restaurant, you may want to target people who are celebrating their anniversary.
Psychographic segmentation can also be used to target specific markets for your product or service. For example, if you are a florist, you may want to target people who have upcoming birthdays. If you are a restaurant, you may want to target people who are celebrating their anniversary.
Facebook now provides ‘birthday month’ and birthday ‘next week’ targeting options that can be used to identify psychographic target markets. In the image below we outline this feature:
Simply go to your Facebook Ads Manager and create a new ad campaign to use this targeting option. Then, under the ‘Audience’ section, select ‘anniversary’ from the list of life events.
Behavioral targeting is a form of internet marketing that focuses on consumer behavior. The technique for performing this involves collecting information about the possible client’s online surfing and purchasing habits from a number of sources.
This data can then be used to create targeted ads that are more likely to interest the individual, increasing their chances of taking notice and perhaps even clicking through.
Behavioral targeting can be an effective way to reach out to potential customers who may be interested in what you have to offer. However, it is essential to remember that not everyone will respond positively to this type of marketing, so it is crucial to use it judiciously.
Now that we’ve gone over the different types of market targeting let’s look at some target market examples. To succeed in business, you need to know and define your target market. Your target market is the group of people most likely to buy from you. But how do you find them? And once you’ve found them, how do you targeting effectively?
Here are eight examples of companies that have successfully targeted their markets:
Example #01: Nike
Market targeting is a process that companies use to identify which groups of consumers are most likely to purchase their products or services. Companies consider some factors when determining their target markets, including age, gender, income level, and lifestyle. For example, Nike’s target market is 11–55-year-olds.
Nike spans generations by targeting middle-aged customers with disposable income and building relationships with younger consumers to ensure future growth and create lifelong brand supporters.
By understanding its target market, Nike can create marketing campaigns that appeal directly to the needs and desires of its target consumers. As a result, the company has grown its brand and effectively maintained a loyal customer base.
Example #02: Lululemon
Lululemon is a yoga-inspired athletic apparel company that targets female consumers. The company’s target market research would be women aged 18–34 who are health-conscious and have an active lifestyle.
To reach its target market, Lululemon uses a variety of marketing channels, including social media, in-store events, and direct-to-consumer marketing. Additionally, it has a strong brand presence through social media influencers and ambassadors.
Example #03: Apple
Apple is a technology company that designs and manufactures consumer electronics, software, and online services. The company’s products are targeted at a wide range of consumers, including students, professionals, and creative professionals.
Apple has a very diverse product lineup that includes smartphones, tablets, laptops, and desktop computers. Additionally, the company offers various services, such as iCloud, iTunes, and the App Store.
To reach its target market, Apple uses a mix of marketing channels, including traditional advertising, digital marketing, and word-of-mouth marketing. Also, the company has a strong brand presence through its iconic product design and user-friendly interface.
Example #04: Wix
While anyone can use Wix.com’s products, the company has identified a target market of small businesses and entrepreneurs. Wix provides everything these individuals need to create a professional website, including templates, hosting, and e-commerce solutions.
By targeting small businesses and entrepreneurs, Wix.com has created a comprehensive product offering that meets the needs of its target market. Consequently, Wix has become a leading provider of website-building solutions for small businesses and entrepreneurs worldwide.
Example #05: Mcdonald’s
In France, Mcdonald’s has a different menu which includes items such as the McBaguette and Croque McDo. In addition, the French McCafe is also a trendy coffee shop located inside Mcdonald’s restaurants. This example shows that companies can create unique products that will appeal to them specifically by targeting local consumers. As a result, this can lead to increased sales and market share.
Example #06: H&M
H&M is a fashion retailer that offers stylish and affordable clothing for women, men, and children. The company’s target market is cost-conscious consumers looking for fashionable clothing.
H&M uses a variety of marketing channels to reach its target market, including television advertising, print advertising, and online marketing. Also, H&M has developed a strong social media presence, with over 30 million followers on Instagram.
Example #07: Amazon
Amazon is an e-commerce platform that sells various products, including books, electronics, furniture, and apparel. The company’s target market is consumers looking for convenience and value.
Amazon uses a marketing campaign mix to reach its target market, including online advertising, search engine optimization, and social media. Additionally, it has developed a strong brand presence through its customer-centric approach to business.
By understanding its target market, Amazon has created a comprehensive product offering that meets the needs of its loyal customers. As a result, it has become the world’s largest e-commerce platform.
Example #08: Walmart
Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. The company’s target market is value-conscious consumers looking for low prices on various products.
To reach its target market, Walmart also uses a variety of marketing channels, including television advertising, print advertising, and online marketing. Additionally, the company has developed a strong brand presence by following the “Everyday Low Prices” strategy.
Organizations use four primary targeting strategies to identify the right audience for their product or service in marketing. These include micro, undifferentiated, differentiated, and concentrated marketing.
Each of these strategies has its advantages and disadvantages, which should be considered when choosing a targeting strategy for your business.
Micromarketing, also known as niche market targeting, is a strategy that focuses on a very small and specific group of consumers. The advantage of this strategy is that it allows businesses to tailor their products or services to a particular group of people.
Micromarketing can be challenging to find the right group of people to target, and businesses may have difficulty reaching a wider audience with this strategy.
2. Undifferentiated marketing
Undifferentiated marketing is also called mass marketing. This type of marketing aims to reach the maximum number of people possible with a single message. Businesses often rely on mass media platforms like television, radio, and print advertisements.
This approach can be effective in raising brand awareness and generating leads. However, creating a message that resonates with such a broad audience can also be costly and challenging. As a result, businesses need to carefully consider their target market and objectives before pursuing an undifferentiated marketing strategy. Nevertheless, undifferentiated marketing can be a powerful tool for driving growth when done correctly.
3. Differentiated marketing
Differentiated marketing is a method of targeting that involves creating marketing efforts that appeal to two or more sections of the target marketing or audiences. Companies can increase brand recognition, reach a larger audience, meet customers’ demands, and boost revenue by segmenting their target audiences and tailoring their marketing messages to specific groups. Differentiated marketing may help firms win in an increasingly competitive market.
On the other hand, it has specific difficulties. For example, creating many distinct marketing campaigns for different categories can be costly and time-consuming. It’s also tough to forecast how customers will react to various messages. However, differentiated marketing may be a valuable instrument for development for firms willing to put down the money and effort.
4. Concentrated Marketing
In order to succeed, businesses need to market their products in the right way. While there are various marketing strategies that companies can use, concentrated marketing is often seen as one of the most effective. This strategy involves a brand directing all effort and resources to develop and market a product for one specific target audience segment; by doing this, businesses can obtain a good position in one marketing segment.
This, in turn, can lead to increased sales and profitability. However, while concentrated marketing is often seen as an effective strategy, it is important to note that it may not suit all businesses. For instance, companies that have a limited budget may not be able to afford to focus all their resources on one target market segment. Nevertheless, concentrated marketing is worth considering for businesses looking to gain a competitive edge.
When choosing a targeting strategy for your business, it is crucial to consider the advantages and disadvantages of each option. The best targeting strategy for your business will depend on your specific goals and objectives. Talk to a marketing professional to develop a targeting strategy for your business.
No matter what targeting strategy you choose for your business, it is essential to remember that your goal should be to reach the maximum number of people possible with your message. You can build a strong marketing strategy by taking inspiration from the above-listed examples.
Differentiated and concentrated marketing are two effective ways, but each approach has advantages and disadvantages. Ultimately, the best targeting strategy for your business will depend on your specific goals and objectives.
Who is nike’s target market?
Nike’s target market is primarily athletic consumers. However, the company has expanded its target market to include non-athletes who are fashion-conscious and trend-savvy. In addition, Nike has also targetted children and young adults as a key market segment.
What is an example of target audience?
There is no definitive answer to this question since it can vary depending on the context. Still, generally speaking, a target audience is a specific group of people intended for a product or message. This could be based on age, gender, interests, or even location. For example, a company selling children’s toys would likely have a target audience of parents or guardians with young children. By contrast, a company selling sports equipment might have a target audience that includes athletes or people interested in staying active and healthy.
What is meant by market targeting?
Market targeting is selecting a specific market to sell a product or service to. The goal is usually to find a subset of the population that is most likely to want and be able to afford the product or service. This can be done using demographic information (e.g., age, sex, income) or psychographic information (e.g., lifestyle, interests).