Selecting target market segments
Posted: Thu Jan 23, 2025 5:48 am
own characteristics, this is undistributed marketing. Differentiated target marketing is more effective. It allows not only to identify, but also to use the specifics of the relevant group as effectively as possible, since it is aimed specifically at it. Advertising strategy is determined by many conditions, including the capabilities of the enterprise, the degree of diversity of product and service offers, the behavior of competing firms.
When planning target marketing, the choice of target market should be determined not only by consumer demand and the expected benefit from selling products and services there, but also by how fully and effectively the company can satisfy customers and what it can offer.
Selecting target market segments
So, the market segments have been truemoney database identified, which allow us to form a separate offer for each of them. But limited resources will not allow us to cover everything, so the question arises, on which group to focus our efforts, after which we need to develop an advertising strategy based on its preferences. Here we need to proceed from the following:
number of potential clients in the segment;
the prospect of expanding its numbers;
expected income;
the number and activity of competitors in the relevant segment;
consumer attitudes towards competitors' products in this market;
distribution options for the selected segment.
Selecting target market segments
Defining the target market in the planning stage of target marketing
risk assessment – for each segment, the risks associated with the sale of products are identified and assessed;
definition of mandatory regulatory requirements established both for the product and for the process of its sale to the end consumer;
assessment of attractiveness against the background of similar products from other manufacturers;
identifying the circle of competitors , whereby it is determined not only at the present time, but also the possibility of the emergence of other competitors is predicted;
anticipating the behavior of competitors when a new seller enters the market;
assessment of the planned income from the sale of goods and services, which should cover the costs associated with production and launching on the market. Particular attention should be paid to the correct positioning and minimization of probabilistic data concerning the attitude of customers to the new product/service;
The calculation of expected income is carried out using general economic methods related to the increase in the total profit of the company, the profitability of securities, the ratio of receipts to the volume of investments in production and promotion of goods.
Product life cycle
When planning target marketing, the choice of target market should be determined not only by consumer demand and the expected benefit from selling products and services there, but also by how fully and effectively the company can satisfy customers and what it can offer.
Selecting target market segments
So, the market segments have been truemoney database identified, which allow us to form a separate offer for each of them. But limited resources will not allow us to cover everything, so the question arises, on which group to focus our efforts, after which we need to develop an advertising strategy based on its preferences. Here we need to proceed from the following:
number of potential clients in the segment;
the prospect of expanding its numbers;
expected income;
the number and activity of competitors in the relevant segment;
consumer attitudes towards competitors' products in this market;
distribution options for the selected segment.
Selecting target market segments
Defining the target market in the planning stage of target marketing
risk assessment – for each segment, the risks associated with the sale of products are identified and assessed;
definition of mandatory regulatory requirements established both for the product and for the process of its sale to the end consumer;
assessment of attractiveness against the background of similar products from other manufacturers;
identifying the circle of competitors , whereby it is determined not only at the present time, but also the possibility of the emergence of other competitors is predicted;
anticipating the behavior of competitors when a new seller enters the market;
assessment of the planned income from the sale of goods and services, which should cover the costs associated with production and launching on the market. Particular attention should be paid to the correct positioning and minimization of probabilistic data concerning the attitude of customers to the new product/service;
The calculation of expected income is carried out using general economic methods related to the increase in the total profit of the company, the profitability of securities, the ratio of receipts to the volume of investments in production and promotion of goods.
Product life cycle