QUESTION
SOLUTION
EXECUTIVE SUMMARY
The report will deal with an overall concept of target market and consumer buying behavior. Target market is the set of customer who share similar views and lifestyle. Seeing the consumer buying patterns and their behaviors towards certain product help marketers to realize who would be their target market. Understand the target market is very important for a company. It helps the company to fix the price and decide upon marketing and communication activities. To understand the concept of target market, it is important to know the concept of market segmentation too. Segmentation of the market on the basis of behavior, psychograph, demography and geography helps a company to realize which segment would be the main target market.
INTRODUCTION
To establish a successful marketing plan it is very important to identify a proper target market. For effective implementation of the 4ps of marketing, selecting the right target market is very important. Price, promotion, place and most importantly the product depends on the target market. On the basis of the target market, proper price, place, promotional tools and product is planned. Unless the company knows its customers and their buying behavior, they can never make a product for them. Even if they make a product, but keep a wrong price and wrong promotional tools they would be unsuccessful in reaching their target market. The first thing a company should do is to understand the consumer buying behavior. This is the core function of the marketing department. To understand the need, want and desire of the customer and make something which would satisfy their requirement, leads to the very success of a company.
Target market is defined as a set of consumers who share similar wants, needs, desires and certain characteristics which are served by a company (Baker, 2009). To cope up with the demand of the market, marketing managers need to understand what exactly would satisfy the consumers. A target market would be the set of people who have the capacity to afford the product. The promotional tools are also designed accordingly to reach the potential consumers on time. A specific place is also selected where the capable consumers visit the most. And most importantly, the product which is needed by the consumers is sold in those places where they visit. Thus we see that all the 4Ps of marketing have been met. Designing an advertisement that would grasp the eyeball of the potential target market is very important to look for. For Example, when an expensive brand like Chanel chooses to open a new store in New York, they would open at a place where only the affluent section of the society dwells. (Clemente, 1992) They would advertise in magazines like Vogue to reach the rich fashionable ladies who are status conscious. Had Chanel chose a place where the middle class visited, the sales figure would have dropped considerably.
Choosing a target market is very important as it helps the company to fathom who will buy their product and at all is there any market that really requires that product then. It helps the company to understand the needs and wants of their consumer.(Kotler, 1999) It also helps to understand the buying behavior of the customers.
To understand the importance of target market, it is essential to understand the concept of segmentation too. With the help of segmentation of customers’ deepening on various variables, the target market is selected(Marky, 2008). The various segmentation variables are as follows.
Segmentation based on Geography: Here the marketing manager divides the market into different segments like a nation, country, locality, region, continent etc. This calls for a company to decide which location to target and which to not. Upon scanning the location, it also helps the marketer to realize their mistake and rectify according to the need of the market.(Jane, 2011) Example, as America is a place where people are very busy and always on the move, fast food restaurants like McDonalds works excellent nears offices and schools. This again would not have worked in a country like Africa where people are poor and do not have much to do. A Gap store sells products on the basis of the climatic condition of the place. Gap located in Florida will keep T-shirts and hot pants while the same company in Portland will sell sweaters and jackets to meet the requirement of the place.
Segmentation based on demography: On the basis of age, gender, marital status, family size, education, occupation etc. marketers target the market.(Louise, 2009) Demographic variable is the most important variable which helps the company to decide which would be their target market. For example, the popular cosmetic company, Maybelline, introduced a range of colors only for the Hispanics and Black Americans.
Segmentation based on psychographics: Here marketers focus on the values, life styles and personality when they divide the market. People in the same demographic group may be segmented in different psychographic segments. So the target market would again differ here. Children of same family group may like different things. Thus marketers need to fathom their problem too before fixing their target market.
Segmentation based on Behavior: Here, the behaviors of people, matter. On the basis of ones attitude and response, the market will understand whether his product will be required by them or not. A sporty person will like Levis Jeans more than wearing formals in a party.
Thus we see segmentation variables help a marker to fix and understand their target market.
The market segment profile of my target market would depend on the product I wish to launch. If I segment the market on geographical basis, my target market would be different from what would have been my target had it been something else. If I wish to launch a heavy woolen jacket, the best place to launch would be North America during winters as the place faces harsh cold weather.
It is very important to understand the pattern of Consumer buying behavior. Social, cultural, individual and emotional factors influence consumer buying behavior. Social class and sub-culture plays a vital role in helping the consumer to take the final call before buying a product. Consumers of America are generally faced with high achievement drive, individualism, liberty etc. Seeing the consumer buying pattern, marketers can develop their product accordingly.(Dewy, 2010) A contraceptive pill will work very well in America as live in relationships are on rise in this country. Thus markers realize these patterns fix upon a certain target market. Social group which consists of family members, peer groups, neighbors and classmates majorly influence the buying behavior of consumers. Peer pressure is a very important factor which forces youngsters to buy certain product.(Mark, 2008) A teenage boy, on seeing a gorgeous looking mobile phone in his friend’s hand would ask his father to gift the same to him. Thus we see that children are too a very string factor while deciding which product to buy.
As mentioned above we came to know that a target market is a set of individuals who share similar likes and wants. To fix the target market, market segmentation helps marketers to understand their target. Segmentation is based on psychographics; geography, behavior and demography which help understand their target. Consumer buying behavior largely depends on peer pressure, personality, social economic status of the customer.
REFERENCE
Baker, M.J (2009). Dictionary of marketing and branding.Business Article. 45. 23-24
Clemente, M. (1992).The Marketing Glossary.
Kotler.P. (1999).Principles of marketing. 8. 56-59
Mark, J. (2008). Marketing Guide.Business Article. 7. 89-93
Dewy, S. (2010).Principles of Segmentation.Business Report. 6. 6-10
Lousie.G. (2009).Marketing Tactics.Business Article. 8. 9-15
Jane. F. (2009).Introduction to Marketing. 45. 67
Marky, M. (2008).Basic guidelines of successful marketing. 7. 89
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