Target Market - JonathanHeller

Chapter 11
Target Market
What is a Market/Target Market
• A group of people who have a
demand for a product.
• The particular group that you are
interested in reaching
• Example Teens, 25-44 year old
males, and senior citizens
Why do Businesses choose a
Target Market?
• Identifying potential customers
for your business, product or
service can be difficult as people
are constantly changing, but if
you know your target audience
you can better learn how to
market to them.
Example of A Target Market:
• Al’s clients are parents with young children, many from his
daughter’s preschool. Al sends a quarterly newsletter to his
clients. Because he focuses on a target market with
common needs, he is able to select
articles that have almost universal appeal to that market.
His newsletter includes one article that discusses practical
information relevant to his clients’ situation but has little to
do with his products and services. For example, one month
he included an article on toddler car seats, written by a
local consumer advocate. Another article will discuss
something relevant to the products and services Al provides
as a financial advisor such as education planning. His
clients appreciate both types of information. Al’s
newsletters help cement his relationship with his clients.
Who is the target market
for these products?
What is Market Segmentation?
• Uses specific characteristics to analyze
your market by breaking down a larger
target market into smaller segments.
–Buying Characteristics
Draw Picture of Segmentation
What are Demographics
• Age
• Gender
• Location
• Education
• Income Level
• Marital Status
• Household type
What are Psychographics
• Needs: Security, Love
• Values: Status, Success
• Buying Styles: Fads, Price
• Culture: Religion, politics
• Interests: Recreation, shopping
Psychographics (attitudes)
Need for status
Role of money (does it buy material
things, self-esteem, etc?)
Ethics/"moral compass"
Risk-taker vs. conservative
Spendthrift vs. hoarder of money
And when the target audience is identified, you'll
then have an idea of what your key message
should be and how to convey it.
What is Market Research
• A process designed to identify solutions to
a specific marketing problem. Example,
identifying which products to sell.
• Two Types:
– Primary – Surveys, Focus Groups
– Secondary – Internet, Government
Types of marketing research
• Marketing research, as a sub-set aspect of
marketing activities, can be divided into
the following parts:
• Primary research (also known as field
research), which involves the conduction
and compilation of research for the
purpose it was intended.
• Secondary research (also referred to as
desk research), is initially conducted for
one purpose, but often used to support
another purpose or end goal.
By these definitions, an example of primary research
would be market research conducted into health
foods, which is used solely to ascertain the
needs/wants of the target market for health foods.
Secondary research, again according to the above
definition, would be research pertaining to health
foods, but used by a firm wishing to develop an
unrelated product.
The Research Process
• Identify a need or problem
• Obtain Primary and Secondary Data
• Organize Data
• Analyze Data
• Recommend Solutions
• Implement a plan of action