TARGET MARKET
Very rarely does a product cater to the entire market. Most products are designed to cater to a group of customers who specifically want such a product. This group of customers is the target market which is a slice of the total market. We say it is the market segment.
Target Market based on demand
SEGMENTATION–TARGETING
Steps; Market Targeting
Target Market Strategy
The major strategy used in the target marketing is the further classification of market into sub group such as,
1.Product,
2.Service,
3.Personnel,
4.Image,
5.Price,
6.Distribution,
7.Promotion in order to distinguish the company from its competitors.
—
— Positioning of product
Very rarely does a product cater to the entire market. Most products are designed to cater to a group of customers who specifically want such a product. This group of customers is the target market which is a slice of the total market. We say it is the market segment.
Target Market based on demand
SEGMENTATION–TARGETING
MARKET SEGMENTATION
Dividing the market into distinct groups with distinct needs, characteristics or behaviour who might require separate products.
TARGET MARKETING
TARGET MARKETING
The process of evaluating each market segment’s attractiveness and selecting one or more segments for mass marketing & niche marketing.
Market Targeting—
Market Targeting—
- Single segment concentration
- —Selective specialization
- —Product specialization
- —Market specialization
Steps; Market Targeting
Target Market Strategy
The major strategy used in the target marketing is the further classification of market into sub group such as,
- Mass marketing strategy.
- Concentrated marketing strategy.
- Differentiated marketing strategy.
- Personalized marketing.
- —For the successful marketing; three key factors i.e. Segmentation, Differentiation and positioning.
- —Determine the major differentiating attributes available to firms .
- —Describe the marketing strategies that are applied at each stage of the product life cycle.
- —Now let us see how most of the Marketing Authors have defined differentiation as: An act of designing a set of meaningful differences to distinguish the company’s offering from its competitor’s offerings.
- —The concept of “differentiation” is an important piece of the marketing puzzle.
1.Product,
2.Service,
3.Personnel,
4.Image,
5.Price,
6.Distribution,
7.Promotion in order to distinguish the company from its competitors.
—
— Positioning of product
- Keller defines positioning as the process of identifying and establishing points of parity and difference to establish the right brand identity and to create proper brand image.
- Kotler defines brand positioning as an act of designing the company’s offer and image so that it occupies a distinct and valuable place in the target consumer’s mind.
- —Positioning is a concept in marketing which was first popularized by Al Ries and Jack Trout in their bestseller book " Positioning - a battle for your mind“ in the year 1969.
- —Positioning is all about ‘perception’. As perception differs from person to person, so do the results of the positioning map e.g. what you perceive as quality, value for money in terms of worth. Something (perception) that happens in the minds of the target market.
- —Positioning is defined as the act of designing the company’s offering and image to occupy distinctive place in the target market’s mind.—
- —Thus the end result of a positioning strategy is a Distinct Value Proposition over the other competitors products–a reason for which the customer would buy the product.
- Defining the market.
- —Identifying the attributes.
- —Analyze the attributes of competitors & customers perceptions.
- —Determine each product's share of mind
- —Determine each product's current location in the product space
- —Determine the target market's preferred combination of attributes.
- —Examine and position of your product
Three types of positioning concepts:
A. Functional positions
A. Functional positions
- —Solve problems
- —Provide benefits to customers
- —Get favorable perception by investors & lenders
- —Self-image enhancement
- —Ego identification
- —Belongingness and social meaningfulness
- —Affective fulfillment
- —Provide sensory stimulation
- —Provide cognitive stimulation
- ——Taj Hotel Mumbai, on 26th November, a significant part of the hotel was burnt down and destroyed the hotel was re-opened on 21st December and all the employees of the hotel were paraded in front of the guests.
- —All category of employees including those who had completed even 1 day as casuals were treated on duty during the time the hotel was closed.
- —Relief and assistance to all those who were injured and killed.
- The relief and assistance was extended to all those who died at the railway station, surroundings including the Pav-Bhaji vendor and the pan shop owners.
- —During the time the hotel was closed, the salaries were sent by money order.
- —A psychiatric cell was established in collaboration with Tata Institute of Social Sciences to counsel those who needed such help.
- —The thoughts and anxieties going on peoples mind was constantly tracked and where needed psychological help provided
- —Employee outreach centers were opened where all help, food, water, sanitation, first aid and counseling was provided. 1600 employees were covered by this facility.
- —Every employee was assigned to one mentor and it was that person's responsibility to act as a single window clearance for any help that the person required.
- —Ratan Tata himself asked the families and dependents as to what they wanted him to do.
- — —The dependents of the employees were flown from outside Mumbai to Mumbai and taken care of in terms of ensuring mental assurance and peace. They were all accommodated in Hotel President for 3 weeks.
- —Ratan Tata personally visited the families of all the 80 employees who in some manner either through injury or getting killed were affected.
- — —In a record time of 20 days, a new trust was created by the Tatas for the purpose of relief of employees.
- —What is unique is that even the other people, the railway employees, the police staff, the pedestrians who had nothing to do with Tatas were covered by compensation. Each one of them was provided subsistence allowance of Rs. 10K per month for all these people for 6 months.
- —A 4 year old granddaughter of a vendor got 4 bullets in her and only one was removed in the Government hospital. She was taken to Bombay hospital and several lacs were spent by the Tatas on her for full recovery.
- —New hand carts were provided to several vendors who lost their carts.
- —Tatas will take responsibility of life education of 46 children of the victims of the terror.
- —This was the most trying period in the life of the organization. Senior managers including Ratan Tata were visiting funeral to funeral over the 3 days that were most horrible.
- —The settlement for every deceased member ranged from Rs. 36 to 85 lacs in addition to lot more benefits.
How TATA has Position the concepts
A.Functional positions
B.Symbolic positions
C.Experiential positions
A.Functional positions
B.Symbolic positions
C.Experiential positions
*** Target Market***
