Target Market
As represented we know that marketing activities are different from the sale, transaction or trade.
American Marketing Association, 1960, defines marketing as follows: Marketing is the implementation of the business that directs the flow of goods and services from producer to consumer or user side. This definition emphasizes only aspect of the distribution rather than marketing activities. As for other functions not shown, so we do not obtain a clear and complete picture of marketing. Important aspect of marketing can be determined as follows:
Target Market
Symptoms are seen more and more companies choose the target market to be addressed, this situation is because they realize that they basically can not serve all customers in that market. Too many customers highly dispersed and scattered and varied in the demands of the needs and desires. So the meaning of the target market is: A market composed of potential customers with specific needs or desires that may well be able to take part in the sale and purchase, in order to satisfy a need or desire.
Because consumers are so heterogeneous that the companies need to classify markets into market segments, and then select and define the specific market segments as a target. Given this, the company helped to identify opportunities to better market, so companies can develop the right product, can determine the distribution and advertising channel that is suitable and efficient and able to adjust the price for goods or services offered for each target market.
Target market is a group of consumers or customers that specifically targeted marketing effort for a company.
In applying the target market, there are three basic steps that must be considered, namely:
1. Market Segmentation
Market Segmentation is to divide the market activities of the heterogeneous nature of a product into the market units (market segments) that are homogeneous. Based on the above definition in mind that markets a product is not homogeneous, but in reality is heterogeneous. Basically, market segmentation is a strategy based on marketing management philosophy that is consumer oriented. By carrying out market segmentation, marketing activities can be more focused and company-owned resources can be used more effectively and efficiently in order to provide satisfaction to consumers.
There are four criteria that must be met so that market segment market segmentation process can be run with effective and beneficial for the company, namely:
a. Scalable, meaning that market segment proficiency level can be measured, both magnitude, and breadth as well as the purchasing power of these market segments.
b. Affordable, meaning that market segment can be achieved so that it can be served effectively.
c. Quite extensive, so it can be advantageous when served.
d. Can be implemented, so that all programs have been structured to attract and serve market segments that can be effective.
Policy of market segmentation must be performed using certain criteria. Surely this is different segmentation between goods industry with consumer goods. But in general thus any changes will be segmented its market on the basis of:
1) On the basis of Geographic Segmentation, market segmentation is done by dividing the market into geographic units such as states, provinces, districts. City, village, and so forth. In this case the company will operate in all segments, however, must consider the different needs and tastes of existing enter the respective areas.
2) Segmentation based on demographics, market segmentation can be done by separating the market into groups based on demographic variables such as age, gender, family size, income, religion, education, occupation, and others.
3) Segmentation based on psychographics, market segmentation is done by dividing the customers into different groups according to social class, lifestyle, various personality traits, purchasing motives, and others.
2. Determination of Target Market
Is an activity that contains and assess and select one or more market segments that will be entered by a company. If the company wants to determine which market segments will be entered, then the first step is to calculate and assess the potential profit from the various segments of the existing earlier. So in this case the marketer must understand enough about the techniques in measuring market potential and forecasting demand in the future. The techniques used are very useful in selecting target markets, so that marketers can avoid mistakes that might happen, or at least reduce it as small as possible in practice. So to that end the company should divide the market into a major market segments, each segment of the market and then evaluated, selected and applied to specific segments as the target. In fact the company can follow one of five market coverage strategy, namely:
a) The concentration of the single market is that a company can focus its activities in one part of the market. Smaller companies usually do this option.
b) Specialization of products, a company decides to produce one type of product. For example a company decides to produce an electric typewriter only for a group of customers.
c) Specialization market, for example, a company decides to make all kinds of typewriters, but directed to a small group of customers.
d) Selectively Specialties, a company engaged in various business activities unrelated to the others, except that any business activity that contains an interesting opportunity.
e) The overall coverage, which is commonly implemented by industry were more likely to outperform the market. They provide a product for every person, in accordance with the purchasing power of each.
3. Product Placement.
a. Formulating product placement in each segment is selected as the target.
b. Develop marketing mix for each segment is selected as the target.
One element in an integrated marketing strategy is the Marketing Mix, which is the strategy that the company, which deals with the determination, how the company presents its product offerings in a particular market segment, which is the target market for. Marketing mix is a combination of variables or activities that constitute the core of the marketing system, where variables can be controlled by the company to influence consumer responses in his target market. Variable or activities need to be combined and coordinated by the company as effectively as possible, in conducting marketing activities. Thus the company not only has the best combination of activities, but also can coordinate various marketing mix variables, to implement effective marketing programs. According to William J. Stanton general understanding of the marketing mix is as follows: marketing mix is the term used to describe a combination of four major building blocks of an organization's core marketing system. The fourth element is the supply of products / services, pricing structures, promotional activities, and distribution systems.
The four elements or variables of the marketing mix (marketing mix) or the so-called four P's are as follows:
a. Product Strategy
b. Price Strategy.
c. Strategic Distribution / Distribution.
d. Promotion Strategy.
Linkages in marketing management, we will write here about the campaign itself, an important aspect of the promotion can be viewed as follows:
= Promotion.
This aspect relates to various efforts to provide information on the market about the products / services sold, place and time. There are several ways to spread this information, including advertising, personal selling, sales promotion and publicity.
1. Advertising: It is a major tool for employers to influence consumers. Advertising can be done by the employer through newspapers, radio, magazines, cinema, television, or in the form of posters placed alongside a road or strategic places.
2. Sales Person: Is a company's activities to make direct contact with prospective customers. With this direct contact is expected to occur in a positive relationship or interaction between the entrepreneur's prospective customers. Included in personal selling include: door to door selling, mail order, telephone selling and direct selling.
3. Sales Promotion: It is the company's activities to peddle products that it markets in such a way those consumers will be easy to see and even by way of placement and certain setting, then the product will attract the attention of consumers.
4. Publicity: It is a common way used by companies to establish influence indirectly to consumers, so they became known, and loved the products it markets, it is different with the promotion, where in doing publicity company is not doing a commercial. Publicity is a promotional tool that is capable of forming public opinion accurately, so often referred to as an attempt to "socialize" or "socializing".
In this case to consider is the achievement of an effective balance, by combining these components into an integrated promotional strategy to communicate with buyers and purchasing decision makers.
