Top 5 Target Marketing Strategies You Need to Know (2021)
Introduction
Products/Services are developed to sell. Marketing involves various strategies to make sales. The marketing strategy varies from product to product. Organizations have dedicated marketing teams to conduct research and surveys to understand customer behaviour. These surveys give an insight into what features of the product appeals to customers. The survey also indicates whether the product will appeal to the masses or a particular section of society. Surveys and researches are part of target marketing analysis. This analysis is the basis for the marketing plan. Organizations design a well-detailed marketing plan. The plans are reviewed on a regular basis. The plans are designed around annual celebrations like Christmas, and New Year also.
1. Target Marketing Strategies Definition
A product or service is designed to suit the needs of the market. At times, the products appeal to all or a section of the market. The product that appeals to everyone falls under the mass marketing strategy. Certain products are manufactured for a particular section of people. This section of people is known as the ‘target audience’. The marketing strategy focusing on the target audience is known as a target marketing strategy.
Based on the response from the market, marketing strategies are designed. The target marketing strategies vary based on the purchasing power of the customer, and the geographical location of the market. The types of target marketing strategies are dependent on multiple factors inclusive of age group, gender, and geographical location to name a few.
Designing a target market strategy aids to focus the time and effort of the marketing team to increase sales in its target group of customers. The different types of target markets need different targeting marketing definitions. Based on the target marketing concept, marketing campaigns are designed to catch the customer’s eye. The market targeting and positioning of the product are crucial for doing business. The strategies vary based on the types of target markets.
2. Various Target Marketing Strategies
Broadly the target marketing strategies are classified into the following types
- Mass Marketing
- Segment Marketing
- Niche Marketing
- Micro Marketing
- Local Marketing
Few market targeting examples are:
- Nike with sports shoes targeting sports playing audience.
- A niche strategy example is Dior. The brand has set itself apart with its unique designs.
- Lego has a mass market with its appeal to children.
A) Mass Marketing
Mass Marketing involves marketing to the entire population with a single strategy. Mass marketing focuses to reach everyone with maximum exposure to the product. An attempt is made to spread the message to everyone with mass media such as TV, newspaper, and mobile.
Regularly consumed products like toothpaste and toothbrushes, mass marketing is all that is needed.
B) Segment Marketing
Segment Marketing known for its differentiated targeting strategy focuses on a section of people known as the ‘target audience’. The target marketing concept is to attract customers to their products. This segment of marketing fetches good results for new products entering to market with established organizations. This differentiated marketing is expensive. The differentiated marketing strategy can be designed uniquely for the different target audiences. A very good two differentiated marketing examples implemented by Lilly Pulitzer are as follows.
Lilly Pulitzer a luxury beachwear company for 60 years catered to an audience inclined towards luxury. In 2015, the company teamed up with Target and came up with a differentiated marketing strategy. The company came up with a target market definition example. The company designed an affordable range of products for sale for a limited duration for another set of the target audience. On the day of the launch, the Target site crashed due to huge traffic. The company gained another section of the target audience in no time.
The company needs to design a unique product for the market segment and requires unique marketing campaigns and promotional events. The benefits of target marketing are it enables to manufacture of the products to suit the need of consumers. The marketing campaigns focus on, selling the products that the target audience frequently visits and creating suitable promotional campaigns.
C) Niche Marketing
Niche marketing also known as concentrated marketing targets a small section of the market. The entire campaign is around this small section of the market. Luxury goods like Rolex and Armani are examples of niche marketing. Niche marketing yields results for small companies with limited production and sales. There are advantages and disadvantages to niche marketing.
Advantages of niche market segment are:
- Generates high revenues.
- Loyal customer base.
- Competition is less.
Disadvantages of niche marketing are:
- The market is small.
- The scope for growth is less.
- Less competition so keenness to improve is minimal
D) Micromarketing
Micromarketing focuses on a much smaller section of people than niche marketing. Micromarketing definition is customized marketing or one-to-one marketing. The products are customized to the requirements of the customer. The micro marketing strategies involve customer tastes, whims, and wishes. A good example of a micromarketing strategy is Etsy.com which focuses on handmade goods taking orders from customers with their specific requirements.
A few micromarketing examples are Uber and Red Bull. Uber used a unique local micromarketing strategy in each city to become visible and expand its customer base. Reb Bull did not focus on its unique point of being an energy drink but on a lifestyle. Red Bull focused on its target audience ‘youth’ interested in sports.
E) Local Marketing
Local marketing strategy involves nearby and neighbourhood areas. The organizations use this marketing strategy to thrive on local connections and make their presence felt. Amazon Local is a good example of a local marketing strategy. The online service providers along with local businesses come up with offers for hotel booking, spa treatments, and restaurant meals at regular intervals. The local companies earn good revenue with sales. Another initiative is CSAs which are community-supported agriculture shares. Local marketing works wonders for freshly grown greens, fruits, and vegetables by creating a market in a nearby locality.
The marketing team is always looking for new ways to capture the audience. A combination of the above strategies along with mobile marketing is making inroads in expanding the customer base. Every marketing strategy will have a promotional campaign to create awareness, research, and surveys to get to know their target audience and segment marketing to make sales to potential customers.
Conclusion
Every business looks for ways to increase sales. Every organization keeps looking for new marketing strategies to grow its business. The marketing life cycle begins even before the product is launched. Understanding customer behaviour and knowing how the product or service will meet the customer needs is where the target audience evolves. Marketing has changed leaps and bounds with the above strategies along with mobile marketing. The videos launched on online platforms ensure the customers know about the product even before they come across the product. This brand awareness aids in making decisions when customers come face to face with the product.
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