Concepts and meanings of target market
Meaning of market goalIn the field of advertising, the terms market target, target, target group and target market as well as target, target group and target market, anglicisms are used as synonyms to designate the ideal recipient of a given campaign, product or service.
However in the marketing environment, target market, refers to the totality of a preferential space Confluence of the offer and the demand for the exchange of goods and services. It includes among its most important elements the geographic scope, distribution channels, categories of products traded, the Repertoire of direct and indirect competitors, terms of trade, and representatives of the demand among influencers, prospective buyers and the target group. So the meaning of the term marketing is substantially broader and it should not be confused with the one used for advertising purposes.
The target group or group goal is the segment of the demand that is directed to a product, either a good or a service. Initially, defined based on demographic criteria such as age, gender and socio-economic variables.
The target utilityIn the field of advertising, once you have a specific target market defined and bounded, more effective and efficient is the use of targeted media to bring the message to the internal market.
In the field of marketing, the appropriate definition of the target group is a key element for the definition of the marketing strategy, since it works as essential complement to properly configure the brand or company value proposition. The advertising strategy increases your effectiveness to make use of the proposed value and the target group, not only by the adequate selection of media, but also for achieving more accurate brand symbolizations and vehicles of communication with greater relevance.
Not to know the target market takes decisions with high risk of failure, especially when strategies are used in mass or traditional media where costs are high and the questionable returns.
New trends.Historically the target markets were considered to be groups of individuals, which using or resorting to diverse segmentation techniques, grouped by age, gender, social groups, etc.
Currently, this concept is giving way to new trends in terms of the definition. Markets are considered to be sets or groups of «buyers profiles» or «potential buyers», something closer to human behavior. This arises from that persons may contain multiple profiles of buyers, for example conditioned by the environment that used to make a purchase or decision making of the same, as humans can be affected by the environment.
Depending on the place and the time of purchase arise changes; one person can behave and have very different characteristics as a buyer according to these variables. This new reality has revealed the reasons why, for example, in advertising campaigns marketing strategies failing according to which you apply, convincing arguments can differ and fail even when they are directed to the same individual, simply because the variables have transformed that individual into a different buyer.
Target market definitionA market goal is the customer group to which will capture, serve and marketing efforts are directed. To locate potential customers learn about aspects such as age, sex, marital status and income, among others. This is market segmentation.
Why you need to have a market target?
Because companies can not attract all buyers on the market, since buyers are too numerous, they are very scattered or are very varied in terms of their needs and customs of purchase.
On the other hand, companies almost never have enough capacity to meet all the demand.
Then, instead of trying to compete in a full market or compete against top competitors, each company must identify and select those markets goal to which they can serve better and to maximum advantage.
Concept of market goalAfter evaluating different segments that exist in a market, the company or organization you must decide to what and how many segments will be used to obtain a specific utility or benefit. This means, that a company or organization needs to necessarily identify and select markets goal towards which will direct its marketing efforts in order to achieve the objectives proposed.
Therefore, it is very important to know what is a market goal, its importance, principles that exist for your selection and the ethical way of doing it; all of which, provides light about how to identify and select markets goal in the most appropriate way possible.
Accordingly, this article contains the answers to the following questions:
• What is the definition of market target?
• What is the importance of markets goal?
• What are the criteria for the selection of target markets?
• And ethical way to select markets goal?
Definition of market goal:• Kotler and Armstrong, authors of the book "Foundations of Marketing", consider that it is the goal of a market "consists of a set of buyers who have needs or characteristics common to that company or organization decides to serve".
• Stanton, Etzel and Walker, authors of the book "Foundations of Marketing", define the market goal as "the market segment to which a company directs its marketing program" . Another definition of the same authors, says that "a market segment (individuals or organizations) for which the seller designed a marketing mix is a market goal".
• Philip Kotler, in his book "Marketing management", defines the market goal or market that served as "part of the qualified available market that the company decides to capture" . It should be noted, that according to Philip Kotler, the qualified available market is the set of consumers that has interest, revenue, access and qualities that match the offer in the market in particular.
• The American Marketing Association (A.M.A), defines the target market (Target Market) or target market, as "the particular segment of a population in which the retailer focuses on its marketing expertise to satisfy that submercado, with the purpose of achieving a particular utility".
• Dictionary of Marketing, Cultural S.A., defines the target market (target market) as "part of the available market qualified to which the company decides to suck".
In short, the market goal is "that segment of the market that the company decides to capture/meet or serve, towards managing your marketing program; with the purpose, obtain a particular utility or benefit."
Importance of markets goal:Currently, companies or organizations recognize that they may not attract all buyers of the market, or at least, that not can attract them all the same way, since buyers are too numerous, too scattered and too varied in terms of their needs and customs of purchase. In addition, enterprises or organizations do not always have sufficient capacity to serve different segments of the market. Then, instead of trying to compete in a full market (which usually includes many market segments) and, in some situations, against top competitors, each company must identify and select those markets goal to which they can serve better and to maximum advantage.
In that sense, Philip Kotler, author of the book "Essential concepts Marketing direction", says that companies get optimal results when they choose carefully your (s) target market (s) and Moreover, prepare marketing programs tailored to each market goal.
A situation that allows to know the importance of markets goal in its real dimension, is the fact that while a company or organisation not defined clearly, may not take decisions consistent in terms of products that will offer, distribution channels that will employ, the tools of promotion that you will use and the price they will pose to the market; all this is crucial to make a company or organization an "attractive offer" in the market.
On the other hand, and in practice, the importance of markets goal is recognized when companies or organizations are not satisfied with your sales, so that in that moment can perform any of the following actions in each market goal that have already selected:
1 Try to attract one higher percentage of buyers in your market goal. For example, attracting customers from the competition.
2 Reduce the requirements that buyers must meet their market potential goal. For example, suppressing some conditions at the time of granting credits.
3. Expand your market goal available. Por_ejemplo, 1) expanding the coverage of distribution, 2) by increasing promotional activities to publicize the benefits of the product to consumers who previously had not been reached or 3) by reducing the price.
Criteria for the determination of target markets:According to Kotler and Armstrong, authors of the book "Foundations of Marketing", the determination of target markets is the process of assessing what so attractive is every market segment and choose the segments that will be entered. In that sense, both authors suggest that companies should focus on segments in which can generate the highest possible value for customers, in a cost-effective and sustainable manner through time.
For its part, authors Stanton, Etzel and Walker, consider that there are four rules governing how to determine if you must choose a segment as market goal:
• First rule.-market goal must be compatible with the objectives and the image of the company or organization.
• Second standard-there must be concordance between the market opportunity that presents the market goal and resources of the company or organization.
• Third rule.-must be chosen segments market generating one sufficient volume of sales and at a cost sufficiently low to generate revenue that justify the investment required. In a nutshell, that is profitable enough.
• Fourth rule-provider market segments in which the competitors are few or weak. It is not advisable to nothing that a company enters a saturated market by competition unless he has an overwhelming advantage that allows you to take customers from other companies.
Election markets goal ethics:According to author Philip Kotler, the determination of the markets target tends to generate controversy in the public, especially when the marketers profited in the advantageous form of vulnerable groups, such as: children, marginalized groups, suburban areas of poor people, or when they promote products that are potentially susceptible to cause damage (cigarettes, alcoholic beverages, food with high content of fat, etc...).
Therefore, to determine the markets goal, the question is not only decide who is determined, but how and why. I.e. that the marketer socially responsible produces a segmentation and localization of markets goal that works not only for the interests of the company or organization, but also for the interests of those who were determined as market goal.
What is Meta marketThe meaning of market goal relates to the needs that companies select a segment of the market, the population or group of consumers to which you want to get.
The target market is also known as market objective or TARGET.
Markets goals are selected to be covered needs in times when marketing plans are launched there are products that seek to achieve various TARGETS, however this type of strategy complicates general performance of product or brand in the eyes of the consumer, due mainly to cannot be a positioning clear.
Positioning is one of the objects of the target market, to unite consumers with the same characteristics psychographic and attitudes, needs and tastes is easier to define the characteristics of your product or brand, as well as the needs that will cover.
When is the marketing plan, and select the target market is necessary to delimit the market, in the terms that permit decisions.
Meaning of market goalThe market is a social institution which establishes the conditions for the exchange of goods and services. In the market, buyers and sellers engage in a commercial relationship to develop transactions, exchanges or agreements.
It can be said that, beyond a physical space, the market arises or materializes when sellers are related with the buyers and articulates a mechanism deoferta and demand.
The notion of target market, target market or targethace reference to the ideal recipient of a product or service. The market goal, therefore, is the sector of the population to which it is directed a good.
The most common variables to determine a market target are age, gender and socio-economic conditions. For example: a company planning to bring to market a new line of football boots. The market target, in this case, will be composed of men younger than 50 years, since it is assumed that this type of booties are aimed at the male gender and those capable of performing sports activities.
A doll, instead, will have as market goal the girls up to 12 years. No manufacturer will point to seduce another type of purchaser, since the commercial logic indicates that a 30 year old woman or a young man of 21 years will not be interested in buying a doll.
To define the market target, is necessary to analyze the behavior of consumers. Newborn will then know to what target aiming and what kind of marketing campaigns are suitable develop for the positioning of the product.