Choosing Your Market
This target demographic or market is further broken down into location, ethnicity, income group, sex, age and other parameters.
Usually market analysis and demographic assessment is done during a product’s initial concept and designing, however demographic assessment can also be done when you are trying to re-launch the product to a different market and a different demographic.
Why is it important to choose your Target Market?
Target market determines the appropriate placement of your product in the scheme of things. Say, you are trying to launch a new car which is economical in the sense it is fuel efficient, stylish, comfortable and also great value for money.
Now let’s take your target market, which are the connoisseurs of car, rich affluent and with a lot of social status and prestige. You are highly unlikely to make even a single sale to this target market.
The reason is this section of the overall market does not look for efficient and value for money automobiles. They need cars which can magnify their social status and also keep in line with their power and affluent lifestyle. They want status symbols, which can enhance the power and prestige and not fuel efficiency and value for money.
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Choosing the right target market can be the difference between your product being a failure and a resounding success. Take the example of the Tata Nano, touted worldwide as the cheapest car.
What made it an even more astonishing is that it was also proclaimed to be a safe car. From the initial announcement and the launch prices have soared by when they finally brought the car to hit the road they managed at a reasonable escalated price. This car was promised to change the average Indian drives and were primarily targeted at the two wheeler section of the Indian middle class.
Although sales were slow initially and there were some issues with the car initially, the common people seem to have taken into the car and sales are now picking up finally. Had the Tatas targeted a more affluent section of the society the car might have been ditched and it would have been an utter failure
Target marketing strategies .
Marketing strategies can be broken down into the following difference categories:-
Single segment strategy
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In this the target market is a specific segment of the market and that section is marketed with a product mix. For small companies with limited marketing, distribution and production capabilities this is the approach of choice as it can handle that much of the market which is allowed by their current size and capacity.
Often large companies with a selective marketing strategy can also approach to find the product acceptance and the feasibility of a larger marketing strategy, such as pilot launch available in select markets only
Selective specialization
This is an approach which is defined by the strategy to market different products to different segments of the market to have a diverse product mix. Sometimes the same product is marketed but the marketing approach and the branding is different to create a difference to target the intended market segment.
Product specialization
Companies often tend to specialize only on one product and then market it to different segments of the market. Their approach is marked with a high degree of product specialization together with a concentrated approach which revolves around only one product.
Market specialization
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When a company targets a specific segment of the market and then approaches them with different product mixes and strategies to market them it is an example of market specialization. For example in the clutter of the automobile market if a firm is only manufacturing trucks and approaching the specific segment which is interested in trucks it is an example of market specialization.
Full market coverage
Market specialization is usually employed by large companies with a huge production capacity, and a wide sales and distribution network in place. They can leverage their capacity and reach to service the entire market and market them various products and services