MARKETING

Defining Marketing

The 21st century has seen the advent of the new economy, thanks to the technology innovation and development. To understand the new economy, it is important to understand in brief characteristics and features of the old economy. Industrial revolution was the start point of the old economy with focus on producing massive quantities of standardized products. This mass product was important for cost reduction and satisfying large consumer base, as production increased companies expanded into new markets across geographical areas. The old economy had the organizational hierarchy where in top management gave out instructions which were executed by the middle manager over the workers.

In contrast, the new economy has seen the buying power at all time thanks to the digital revolution. Consumers have access to all types’ information for product and services. Furthermore, standardization has been replaced by more customization with a dramatic increase in terms of product offering. Purchase experience has also changed as well with the introduction of online purchase, which can be done 24 × 7 with products getting delivered at office or home.

Companies have also taken advantage of information available and are designing more efficient marketing programs across consumers as well as the distribution channel. Digital revolution has increased speed of communication mobile, e-mail SMS, etc. This helps companies take faster decisions and implement strategies more swiftly.

Marketing is art of developing, advertising and distributing goods and services to consumer as well as business. However, marketing is not just limited to goods and services it is extended to everything from places to ideas and in between. This brings forth many challenges within which marketing people have to take strategy decisions. And answer to these challenges depends on the market the company is catering to, for consumer market decision are with respect to product, packaging and distribution channel. For business market, knowledge and awareness of product is very essential for marketing people as businesses are on the lookout to maintain or establish a credential in their respective market. For global market, marketing people have to consider not only culture diversity but also be careful with respect to international trade laws, trade agreement, and regulatory requirements of individual market. For non for profit organization with limited budgets, importance is related to pricing of products, so companies have to design and sell products accordingly.

Marketing philosophy employed by any given company has to be mix of organization interest, consumer interest and societal interest. In production philosophy, companies focus is on numbers, high production count, which reduces cost per unit and along with mass distribution. This kind of concept is usually making sense in a developing market where there is the need of product in large numbers. The product philosophy talks about consumers who are willing to pay an extra premium for high quality and reliable performance, so companies focus on producing well made products. The selling concept believes in pushing consumers into buying of products, which under normal circumstance, they would be resistant. The marketing concept believes consumer satisfaction, thereby developing and selling products keeping focus solely on customer needs and wants. The customer philosophy believes in the creation of customized products, where in products is design looking at historical transaction of consumers. The last philosophy is the societal concept which believes in developing products, which not only generate consumer satisfaction but also take into account well being of society or environment.

Digital revolution and 21st century have made companies fine tune the way they conduct their business. One major trend observed is the need of stream lining processes and systems with the focus on cost reduction through outsourcing. Another trend observed in companies is, encouragement to entrepreneur style of work environment with glocal (global-local) approach. At the same time, marketers of companies are looking forward to building long term relationship with consumers. This relationship establishes platform understanding consumer needs and preference. Marketers are looking at distribution channels as partners in business and not as the customer. Companies and marketers are making decisions using various computers simulated models.

To summarize 21st century marketing is challenge, which is to keep up pace with changing time.

Adapting Marketing to the New Economy

In the old economy focus was only on standardization, mass production and singular marketing policy. However, with the amount of information available in the new economy, companies are best at understanding consumers. This better understanding has led to customized products, a shift from standardization. However, this customization has its drawbacks not only for companies but also for customer. Companies find it difficult to maintain the cost level for customized products to register profit. Customization is impossible for products, which require complex industrial engineering. Customer does not know real product appearance until it fully completed and also return policy is not there in customization.

The new functioning of economy has changed the way companies approach their business. Companies are looking forward to expanding across market segments to get maximum market share while keeping focus strictly on customer needs. For these companies are making organizational changes where departments are developed to manage a segment rather than a product. Companies are looking forward to developing consumer based brand equity to foster long term relation. Companies are coming up with products, which perform superior than consumer expectation there by creating a strong brand while the earlier branding task was accomplished through advertising. Companies are treating employees, distribution channel, and suppliers as their business partner and not customer.

Since companies have changed the way they function in the new economy, it is imperative that marketing practices also adapt. As consumers are looking forward going online for major of their purchase, businesses are looking towards electronic commerce (e-commerce) as a way forward. Research has shown online users usually buy music, software, books, apparel, etc. rather than goods like automobiles, house, etc. Business buyers are also coming online as well as suppliers, thereby substantially reducing the establishment cost. E-Commerce has also open doors for customer to customer relation through social networking and community forums, in which experience and discussion are done with respect to products. Through internet consumers are able to provide faster feedback to companies with respect to products and services.

As businesses are moving online, the focus shifts to developing of web sites to provide reliable and correct experience to consumers. Web site design, maintenance and security are of paramount importance for creating a favorable impression on consumer. Online marketing and advertisement have got prominence in this internet age.

The new economy had brought forward challenges and opportunities not only for companies but also for consumer.

Scanning the Market Environment

Factors influencing the market can be categorized under 6 different titles, demographic, economic, ecology, technology, regulatory-political and society-culture.

1. Demographic factors: are associated with changing nature and volume of population. It follows how people are conducting themselves in the new world, increasing per capita income, urban migration, ethnically diverse cities and mega cities. These are some demographic factors companies are monitoring. For example, a country like India and China are showing highest concentration of youth population where as Japan is showing high number of retired workers. Therefore, demand and consumption of product will also be different.
2. Economic factors: deals with function like purchasing power parity, income level, savings level and interest rates among many other. For example, countries with a high income level are more likely to afford luxury items compare to a low income level country. Savings level and interest rate determine the borrowing power as well as spending power of consumer.
3. Ecological factors: consist of natural resource composition in a given county. For example, demand for fossil fuel has sky rocketed in recent years there by increasing general price level in the market. Companies, therefore, are looking forward to designing products which eco-friendly design that is they are less fuel dependent and give out less pollution.
4. Technology factors: like internet and connectivity are changing the face of business. More and more people are doing business online. Science and medicine are also part of technology factors. Challenge for the company is to keep up with innovation and offer products, which are not obsolete.
5. Political environment: is also changing with more and more market based system rather than the socialist system. Furthermore, regulatory requirements like competition policy, investment policy, tax policy, etc. companies should investigate before taking their business to a particular country.
6. Culture environment: deals with factors like opinion people have towards themselves, others, organization and society in general. People have become more eco conscious, contributing one or many causes they can relate to, want organization to be responsible for their action and are looking to open society with meaningful co-existence.

All this 6 factors define any market environment and companies must understand them before developing their business plan.

Analyzing Consumer’s Buying Behaviour

The core function of the marketing department is to understand and satisfy consumer need, wants and desire. Consumer behaviour captures all the aspect of purchase, utility and disposal of products and services. In groups and organization are considered within the framework of consumer. Failing to understand consumer behaviour is the recipe for disaster as some companies have found it the hard way. For example, Wal-Mart launched operations in Latin-America with store design replicating that of US markets. However, Latin America consumer differs to US consumer in every aspect. Wal-Mart suffered consequences and failed to create impact.

Social, cultural, individual and emotional forces play a big part in defining consumer buying behaviour. Cultural, sub-culture and social class play an important is finalizing consumer behaviour. For example, consumer growing up in US is exposed to individualism, freedom, achievement, choice, etc. On sub-culture level influence of religion, race, geographic location and ethnicity define consumer behaviour. Social class consists of consumer with the same level of income, education, taste, feeling of superiority and inferiority. Over time consumer can move from one social level to another.Culture alone cannot define consumer behaviour; social forces also play an important role. Social forces consist of family, friends, peer groups, status and role in society. Groups which have direct or indirect influence on consumer are referred to as reference groups. Primary groups consist of friends, family and peers with whom consumer has direct contact for considerable time. Secondary groups are association where interaction is at formal level and time devoted is less.

Consumer buying behaviour is influenced by individual’s own personality traits. These personality traits do not remain the same but change with the life cycle. The choice of occupation and corresponding income level also play part in determining consumer behaviour. A doctor and software engineer both would have different buying pattern in apparel, food automobile etc. Consumers from similar background, occupation and income levels may show a different lifestyle pattern.

An individual buying behaviour is influenced by motivation, perception, learning, beliefs and attitude. These factors affect consumer at a psychological level and determine her overall buying behaviour. Maslow’s hierarchy, Herzberg Theory and Freud Theory try and explain people different motivational level in undertaking a buying decision. Perception is what consumer understands about a product through their senses. Marketers have to pay attention to consumer’s perception about a brand rather than true offering of the product. Learning comes from experience; consumer may respond to stimuli and purchase a product. A favorable purchase will generate positive experience resulting in pleasant learning. Belief is the pre-conceived notion a consumer has towards a brand. It is kind of influence a brand exerts on consumer. For example, there is a strong belief product coming through German engineering are quality products. Companies may take advantage of this belief and route their production through Germany.

Companies need to think beyond buying behaviour and analyze the actual buying process. Complex buying behaviour requires high involvement of buyers, as it is infrequent in nature, expensive, and they are significant differences among the available choice e.g. automobile. Grocery buying is referred to as habitual buying, which requires less involvement as few differences among brands, frequent and inexpensive. Buying process involves purchase need, decision makers, information search, alternatives evaluation, purchase decision and post purchase behaviour. Companies try hard to understand consumer experience and expectation at every stage of buying process. Marketers need to figure the right combinations which will initiate purchase need e.g. marketing programs. Companies should ensure consumer have readily available information to take the decision e.g. internet, friends. Consumers evaluate alternatives based on their brand perception and belief. Companies need to work hard to develop products, which match this perception and belief every time. Final purchase decision is taken looking other’s perception of the brand. Post purchase if expectations meet actual performance consumer is satisfied and more likely to repurchase or recommend the brand to others.

Consumer markets are defined by various geographical, social and cultural factors. Furthermore, consumer behaviour is influenced by psychological, personality, reference groups and demographic reasons. Finally actual buying process involves complex process and cycle. Companies have to keep a tab on all three factors in formulating strategy.

Product Development Process

Nowadays, companies are following stage process for product development.

1. The 1st stage is idea generation that is the search for new products. Companies pay a particular focus on customer needs and demands to decide on the new product. Idea generation can also be done by studying competitor’s product. Companies try to learn why competitor’s product ticks with consumer or what more customers want from that product. Companies also look at top management for idea generation. For example, Steve Jobs of Apple is known to participate actively in an idea generation. Research groups comprising of scientist, patent holders, colleges and universities also serve as the base for idea generation.
2. The 2nd stage is idea screening. Not all new ideas proposed can be converted into products. Companies list ideas into three categories promising ideas, marginal ideas and rejects. Promising ideas are further process by screening committee to be ready for the next stage. Screening should avoid the error where good ideas are dropped due to bias towards the idea generator. Another commonly occurring error is encouragement to a commercially unviable idea. Therefore, extra precautions are necessary during the screening process.
3. The 3rd stage begins when ideas move into the development process. Here a product idea is converted into several product concepts. Out of several product concepts, the one which looks fit is then placed against competitors to finalize marketing and positioning strategy. Product concept is introduced to a focus group of customer in a form of proto-type to understand their reaction.
4. The 4th stage involves developing of marketing strategy for new product. The marketing strategy involves evaluation of market size, product demand, growth potential, profit estimate in first few years. Further marketing strategy plan is developed with the launch of product, selection of distribution channel and budgetary requirements for the 1st year.
5. The 5th stage involves the development of the business model around the new product. Business models start with estimation of sales, frequency of purchase, and nature of business. Next estimation of cost and expense involve in production and distribution of new product. In that basis profit estimations are reached. Discounted cash flow and other methods are used to understand feasibility of new product.
6. The 6th stage involves the actual production of new product. Here more than one possible product are created, from proto-type to finalized products are produced. Decisions are taken from operation point of view whether is technically and commercially feasible to continue production. If analysis is showing cost not within the estimate then project is abandoned.
7. The 7th stage involves market testing of new product. The new product is ready with brand name, packaging, price to capture space in consumer’s mind.
8. The 8th stage involves launching of product across target market backed by a proper marketing and strategy plan. This stage is called commercialization phase.

Introduction of new product is part of survival technique for any firm. And with very high failure rate companies have to follow a scientific process to create new market offerings.

Types of Markets

A set up where two or more parties engage in exchange of goods, services and information is called a market. Ideally a market is a place where two or more parties are involved in buying and selling.

The two parties involved in a transaction are called seller and buyer.

The seller sells goods and services to the buyer in exchange of money. There has to be more than one buyer and seller for the market to be competitive.

Monopoly - Monopoly is a condition where there is a single seller and many buyers at the market place. In such a condition, the seller has a monopoly with no competition from others and has complete control over the products and services.

In a monopoly market, the seller decides the price of the product or service and can change it on his own.

Monopsony - A market form where there are many sellers but a single buyer is called monopsony. In such a set up, since there is a single buyer against many sellers; the buyer can exert his control on the sellers. The buyer in such a form has an upper edge over the sellers.

Types of Markets

1. Physical Markets - Physical market is a set up where buyers can physically meet the sellers and purchase the desired merchandise from them in exchange of money. Shopping malls, department stores, retail stores are examples of physical markets.
2. Non Physical Markets/Virtual markets - In such markets, buyers purchase goods and services through internet. In such a market the buyers and sellers do not meet or interact physically, instead the transaction is done through internet. Examples - Rediff shopping, eBay etc.
3. Auction Market - In an auction market the seller sells his goods to one who is the highest bidder.
4. Market for Intermediate Goods - Such markets sell raw materials (goods) required for the final production of other goods.
5. Black Market - A black market is a setup where illegal goods like drugs and weapons are sold.
6. Knowledge Market - Knowledge market is a set up which deals in the exchange of information and knowledge based products.
7. Financial Market - Market dealing with the exchange of liquid assets (money) is called a financial market.

Financial markets are of following types:

1. Stock Market - A form of market where sellers and buyers exchange shares is called a stock market.
2. Bond Market - A market place where buyers and sellers are engaged in the exchange of debt securities, usually in the form of bonds is called a bond market. A bond is a contract signed by both the parties where one party promises to return money with interest at fixed intervals.
3. Foreign Exchange Market - In such type of market, parties are involved in trading of currency. In a foreign exchange market (also called currency market), one party exchanges one country’s currency with equivalent quantity of another currency.
4. Predictive Markets - Predictive market is a set up where exchange of good or service takes place for future. The buyer benefits when the market goes up and is at a loss when the market crashes.

Market Size

The market size is directly proportional to two factors:

• Number of sellers and Buyers
• Total money involved annually

Market Segmentation

What is Segmentation ?

Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics.

Market Segmentation

• Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.
• A market segment is a small unit within a large market comprising of like minded individuals.
• One market segment is totally distinct from the other segment.
• A market segment comprises of individuals who think on the same lines and have similar interests.
• The individuals from the same segment respond in a similar way to the fluctuations in the market.

Basis of Market Segmentation

• Gender

  The marketers divide the market into smaller segments based on gender. Both men and women have different interests and preferences, and thus the need for segmentation.
  Organizations need to have different marketing strategies for men which would obviously not work in case of females.
  A woman would not purchase a product meant for males and vice a versa.
  The segmentation of the market as per the gender is important in many industries like cosmetics, footwear, jewellery and apparel industries.

• Age Group

  Division on the basis of age group of the target audience is also one of the ways of market segmentation.
  The products and marketing strategies for teenagers would obviously be different than kids.

  Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams
  Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags
  Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on

• Income

  Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings.
  The three categories are:

  High income Group
  Mid Income Group
  Low Income Group

  Stores catering to the higher income group would have different range of products and strategies as compared to stores which target the lower income group.
  Pantaloon, Carrefour, Shopper’s stop target the high income group as compared to Vishal Retail, Reliance Retail or Big bazaar who cater to the individuals belonging to the lower income segment.

• Marital Status

  Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have similar holiday packages for bachelors and married couples.

• Occupation

  Office goers would have different needs as compared to school / college students.
  A beach house shirt or a funky T Shirt would have no takers in a Zodiac Store as it caters specifically to the professionals.

Types of Market Segmentation

• Psychographic segmentation
  The basis of such segmentation is the lifestyle of the individuals. The individual’s attitude, interest, value help the marketers to classify them into small groups.
• Behaviouralistic Segmentation
  The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.
• Geographic Segmentation
  Geographic segmentation refers to the classification of market into various geographical areas. A marketer can’t have similar strategies for individuals living at different places.
  Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season.
  McDonald’s in India does not sell beef products as it is strictly against the religious beliefs of the countrymen, whereas McDonald’s in US freely sells and promotes beef products.

  Steps in Market Segmentation

  
  
  Segmentation refers to the process of creating small segments within a broad market to select the right target market for various brands. Market segmentation helps the marketers to devise and implement relevant strategies to promote their products amongst the target market.
  A market segment consists of individuals who have similar choices, interests and preferences. They generally think on the same lines and are inclined towards similar products. Once the organizations decide on their target market, they can easily formulate strategies and plans to make their brands popular amongst the consumers.

  Steps in Market Segmentation

  1. Identify the target market

     The first and foremost step is to identify the target market. The marketers must be very clear about who all should be included in a common segment. Make sure the individuals have something in common. A male and a female can’t be included in one segment as they have different needs and expectations.
     Burberry stocks separate merchandise for both men and women. The management is very clear on the target market and has separate strategies for product promotion amongst both the segments.
     A Garnier men’s deodorant would obviously not sell if the company uses a female model to create awareness.
     Segmentation helps the organizations decide on the marketing strategies and promotional schemes.
     Maruti Suzuki has adopted a focused approach and wisely created segments within a large market to promote their cars.

     Lower Income Group - Maruti 800, Alto
     Middle Income Group - Wagon R, Swift, Swift Dzire, Ritz
     High Income Group - Maruti Suzuki Kizashi, Suzuki Grand Vitara

     Suzuki Grand Vitara would obviously have no takers amongst the lower income group.
     The target market for Rado, Omega or Tag Heuer is the premium segment as compared to Maxima or a Sonata watch.

  2. Identify expectations of Target Audience

     Once the target market is decided, it is essential to find out the needs of the target audience. The product must meet the expectations of the individuals. The marketer must interact with the target audience to know more about their interests and demands.
     Kellogg’s K special was launched specifically for the individuals who wanted to cut down on their calorie intake.
     Marketing professionals or individuals exposed to sun rays for a long duration need something which would protect their skin from the harmful effects of sun rays. Keeping this in mind, many organizations came with the concept of sunscreen lotions and creams with a sun protection factor especially for men.

  3. Create Subgroups

     The organizations should ensure their target market is well defined. Create subgroups within groups for effective results.
     Cosmetics for females now come in various categories.
     • Creams and Lotions for girls between 20-25 years would focus more on fairness.
     • Creams and lotions for girls between 25 to 35 years promise to reduce the signs of ageing.

  4. Review the needs of the target audience

     It is essential for the marketer to review the needs and preferences of individuals belonging to each segment and sub-segment. The consumers of a particular segment must respond to similar fluctuations in the market and similar marketing strategies.

  5. Name your market Segment

     Give an appropriate name to each segment. It makes implementation of strategies easier.
     A kids section can have various segments namely new born, infants, toddlers and so on.

  6. Marketing Strategies

     Devise relevant strategies to promote brands amongst each segment. Remember you can’t afford to have same strategies for all the segments. Make sure there is a connect between the product and the target audience. Advertisements promoting female toiletries can’t afford to have a male model, else the purpose gets nullified.
     A model promoting a sunscreen lotion has to be shown roaming or working in sun for the desired impact.
• Review the behavior of the target audience frequently. It is not necessary individuals would have the same requirement (demand) all through the year. Demands vary, perceptions change and interests differ. A detailed study of the target audience is essential.

Marketing Mix - Meaning and its Elements

Neil Borden in the year 1953 introduced the term Marketing mix, an extension of the work done by one of his associates James Culliton in 1948.

Marketing Mix - A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix.

Elements of Marketing Mix

The elements of marketing mix are often called the four P’s of marketing.

1. Product
   Goods manufactured by organizations for the end-users are called products.
   Products can be of two types - Tangible Product and Intangible Product (Services)
   An individual can see, touch and feel tangible products as compared to intangible products.
   A product in a market place is something which a seller sells to the buyers in exchange of money.
2. Price
   The money which a buyer pays for a product is called as price of the product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa.
   Retail stores which stock unique products (not available at any other store) quote a higher price from the buyers.
3. Place
   Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet.
4. Promotion
   Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to promote and make a brand popular amongst the masses.
   Promotion can be through any of the following ways:
   • Advertising
     Print media, Television, radio are effective ways to entice customers and make them aware of the brand’s existence.
     Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas, crossings, railway stations, bus stands attract the passing individuals towards a particular brand.
     Taglines also increase the recall value of the brand amongst the customers.
   • Word of mouth
     One satisfied customer brings ten more customers along with him whereas one dis-satisfied customer takes away ten more customers. That’s the importance of word of mouth. Positive word of mouth goes a long way in promoting brands amongst the customers.

Lately three more P’s have been added to the marketing mix. They are as follows:

• People - The individuals involved in the sale and purchase of products or services come under people.
• Process - Process includes the various mechanisms and procedures which help the product to finally reach its target market
• Physical Evidence - With the help of physical evidence, a marketer tries to communicate the USP’s and benefits of a product to the end users

Four C’s of Marketing Mix

Now a days, organizations treat their customers like kings. In the current scenario, the four C’s has thus replaced the four P’s of marketing making it a more customer oriented model. Koichi Shimizu in the year 1973 proposed a four C’s classification.

• Commodity - (Replaces Products)
• Cost - (Replaces Price) involves manufacturing cost, buying cost and selling cost
• Channel - The various channels which help the product reach the target market.
• Communication - (Replaces Promotion)

Robert F. Lauterborn gave a modernized version of the four C’s model in the year 1993. According to him the four C’s of marketing are:

Consumer
Cost
Convenience
Communication

Target Marketing - Meaning, Basis and its Need

It is not possible for a marketer to have similar strategies for product promotion amongst all individuals. Kids do not get attracted towards products meant for adults and vice a versa. Every segment has a different need, interest and perception. No two segments can have the same ideologies or require a similar product.

Target Marketing refers to a concept in marketing which helps the marketers to divide the market into small units comprising of like minded people. Such segmentation helps the marketers to design specific strategies and techniques to promote a product amongst its target market. A target market refers to a group of individuals who are inclined towards similar products and respond to similar marketing techniques and promotional schemes.

Kellogg’s K Special mainly targets individuals who want to cut down on their calorie intake. The target market in such a case would be individuals who are obese. The strategies designed to promote K Special would not be the same in case of any other brand say Complan or Boost which majorly cater to teenagers and kids to help them in their overall development. The target market for Kellogg’s K Special would absolutely be different from Boost or Complan.

Jordan, a college student went to a nearby retail store to purchase a shirt for himself. The retailer tried hard to sell a nice formal shirt to him, but somehow could not convince Jordan. Jordan left the store sad and empty handed.

Where do you think is the problem ?

The problem is neither with Jordon nor the shirt. The retailer in this case failed to understand that Jordan, being a college student, was not the target audience for the formal shirt. No amount of convincing helped as the retailer was targeting the wrong audience. The target market for a formal shirt would be office goers or professionals. Funky T shirts, casual shirts would have worked better for Jordon.

The target market for Zodiac Clothing Company Limited or Louis Philippe would be the office goers whereas the target market for Levi’s would be the school and college kids.

The target market for Cat moss or Giny and Jony would be kids.

In simpler words, target market consists of like-minded individuals for whom an organization can afford to have similar strategies, promotional schemes and advertisements to entice them and prompt them to purchase the product. Once a company decides on its target audience, it implements various promotional strategies to make a brand popular amongst them.

Basis of Target Marketing

• Age
• Gender
• Interests
• Geographic location
• Need
• Occupation

Why target marketing? (Need of Target Marketing)

• Organizations can use similar kind of strategies to promote their products within a target market.
• They can adopt a more focussed approach in case of target marketing. They know their customers well and thus can reach out to their target audience in the most effective way.

How to create Target Market

• The organization must first decide who all individuals would fit into a particular segment. A male and a female can’t be kept in the same segment. The first and the foremost step is to decide on the target market.
• The next step is to identify need and preference of the target market. It is essential to find out what the target market expects from the product.
• Once the target market is decided, organizations can decide on the various strategies helpful to promote their product.