Target Market Selection
Target marketing is a particular market segment at which a marketing campaign is focused. When selecting a target market it is important to make sure that it fits the company’s objectives, resources, and capabilities.
There are different aspects that should be considered when evaluating your market segment. For instance; risk level, competition in the segment, the growth rate of the segment, brand loyalty of existing customers in the segment, the size of the segment, sales potential, etc. There are other market research and analysis that should also be considered like test marketing, buyer intentions, and sales potential.
Different market segments for targeting:
- Single-segment/concentrated- one market and not the entire market.
- Selective specialization/differentiated strategy- a segment that is based on its range of products instead of one market.
- Market specialization- specializes in serving one particular market segment with an array of different products.
- Full market specialization- targets the entire market. This is a mass market strategy, different segments.
If a company develops a strong competitive advantage, it may find it profitable to pursue a larger segment. Although larger segments may have more competition and not necessarily profitable. It’s important for the company to offer superior value to the targeted segment and also get a positive return on investment.
Meet America’s 25 Biggest Advertisers Most-Advertised Brands By 2012 U.S. Measured-Media Spending
AT&T spent $1.59 billion on advertising last year but ranked number 528 out of 645 in customer support, listed as terrible. A balance between advertising and customer service is very important; successful companies make the two works together to increase sales and customer satisfaction.
A salient example is Zappos (online retailer), puts their customers first while still participating in re-targeted advertisements. Also on the same list, Apple is spending more money to get less results compare to its competitors; the company spends $65 million more than the only other competitor on the list which is “Samsung”.
Apple is still more costly and trendier, but Samsung mass market and lower cost appeal have surpassed Apple in the smart phone shipment so far this year. Samsung is a top Asian brand ahead of Apple at the moment.
Meet America’s 25 Biggest Advertisers Most-Advertised Brands By 2012 U.S. Measured-Media Spending
Customer Service Ratings for Top Companies Based Upon User Feedback
The Marketing Explorer 