Published: 2021-10-17
Views: 163
Author: Jummie
Published in: Business

Market targeting is the second step when carrying out product promotion. It is a process of selecting a specific group to which a business will advertise.

It is particularly based on the assumption that, because it is practically impossible to make or do something that will please everyone, a business must have a focus.

So many companies usually hire an advertising agency to help them strengthen their brands as well as to get a sense of potential sales for production or financing.

Why is targeting important?

Your product promotion will fail if you do not have a proper targeting strategy in place.

To sell successfully, you must first understand who you are selling to, and then select the most appropriate strategies and techniques for each segment.

Top Gains from Market Targeting

You will be able to achieve the following objectives with an effective plan.

• Obtain high-quality leads: You will be able to target only leads who are most likely to be interested in your business as well as your product.
• Stay competitive: You will be able to get the more precise target. This will help you to stay ahead of your competitors. Remember that most clients always choose brands that offer relevant promotions.
• Improve your service and products: Another benefit is that you will be able to make better improvements to your service or products. The reason is that to create an effective targeting strategy, you have to research your target audience.

What is a Target Market?

A target market is usually described as a group or groups of potential or returning customers on whom a company focuses its marketing efforts.

The main aim of having a target market is to understand those people to may likely be their customers.

Top Types of Market Targeting

• Theme-based targeting: Most advertising as well as information messages are displayed in accordance with a specific topic.
• Contextual targeting: The message demonstrations of this type of targeting is based on user interests.
• Geo-targeting: the advertising demonstration of this targeting type is based on your target audience's geographical location.
• Behavioral targeting: Another promising types of targeting is behavioral targeting, which involves the introduction of a mechanism for collecting information about users' actions: travel routes, favorite places to visit, shopping habits, and so on.
• Socio-demographic targeting: This is a focus target market that is based on age, gender, income, social status, and so on.

The 4 types of market segmentation with examples

#1. Demographic segmentation:

People generally refer to "market segmentation," as demographic segmentation, this could be because of its straightforward method of defining customer groups.

So, the demographic segmentation tries to distinguish non-character traits such as:

• Age
• Gender
• Ethnicity
• Income
• Level of education
• Religion
• Profession/role in a company

#2. Psychographic segmentation:

Psychographic segmentation is practically based on the personalities and interests of your potential customers.

In this category, you can look at customers and categorize them based on:

• Personality traits
• Hobbies
• Life goals
• Values
• Beliefs
• Lifestyles

#3. Geographic segmentation:

Geographic segmentation is one of the simplest to identify, because it is very easy to group customers based on their physical location.

The geographical location could be defined in a variety of ways, including:

• Country
• Region
• City
• Postal code

#4. Behavioral segmentation:

Psychographic segmentation requires a small amount of data to be effective. But you can gather this data directly from your website.

You can categorize customers here based on their:

• Spending habits
• Purchasing habits
• Browsing habits
• Interactions with the brand
• Loyalty to brand
• Previous product ratings

What is a Target Audience?

Another important point that you need to note is that a target audience is a specific group of people to whom your brand appeals or to whom your products fill an unmet need.

This group is the most likely to purchase and be interested in your products or services.

The Top Benefits of Market Targeting

When you effectively implement market target, you will be able to generate customer leads with ease and also at a cheaper rate.

#1. Saves Cost

Marketing targeting greatly helps you to minimize wastage of money as well as helps you to save cost and get a higher return on investment, especially for small businesses with limited marketing budgets.

This is why it is very important for small business to ensure that they implement targeted marketing because it will help them not to waste time and money marketing to people who will never become customers.

#2. Communicating with your target market

Another important benefit that target marketing brings to your business is that you will be able to precisely market to your target market.

This will greatly improve the efficiency with which your brand match with your customers.

So it is very essential for marketers to consider how and where to communicate with a target audience in order to reach them and have them listen. You need to find out:

• Do they read the local paper on a daily basis?
• Is it possible they're on Facebook?
• Do they spend a lot of time watching television?
• What marketing message will best resonate with them?