In a word, "Yes."
I teach a target market is a particular group of consumers (or a part of "People" in my 9P's) is at which a product or service is aimed.
A product focusing on a specific target market contrasts sharply with one following the marketing strategy of mass marketing. In our analysis and thinking, a target audience would be a media term; target market is a marketing term.
Another term used is “personas.” These are fictional characters or potential users which you create based upon your research in order to represent the different user types that might use your service, product, site or brand in a similar way. Creating personas will help you to understand your users' needs, experiences, behaviors and goals.
Defining a target market or persona requires market segmentation; the process of segmenting the entire market as a whole and separating it into manageable units based on:
- Demographics: Demographic market segmentation is looking at the potential or actual buyer’s age, family size, race, occupation, generation, religion, gender, family lifecycle, ethnicity, nationality, income, education, social class. Demographics may be segmented into several markets to help an organization target its consumers more effectively.
- No as relevant with sodas. Technographics or technographical characteristics. Understanding your potential consumer. Remember, in the back of your mind, that the reason technology is phenomenal is because it displaces years, or centuries, of previous technology. Consumers may or may not have the skills. Think employees here too. The reason technology skills are transitory is because they will almost certainly be displaced, too.
- Geographics or Geographic segmentation could be nation, country, region, city, density, climate.
- Psychographics is the science of dividing into groups on psychological /personality traits, lifestyle, or values. People in the same demographic groups may be very different in their psychological profiles.
Segmentation is an important Marketing concept; the market segmentation process includes:
Targeting these segments in the market based on those characteristics, and affect new product development.
Researchers check to see whether any of these market segments are large enough to support the organization's product.
From the major manufacturers to startups, companies have found from their “People” research, from users and nonusers, that sugar is no longer where it's at. It’s dominating research studies and new product development. There are changes in consumer demand and with government-imposed soda taxes, it seems like dozens of companies are looking at sugar-free options.
Visit here for more insights and true Marketing and Advertising Trivia.
I am a senior Forensic Marketing Expert, Advertising/Marketing consultant with Londre Marketing Consultants, LLC plus I teach Marketing and Advertising. I own a copyright for this concept, the Nine P’s/9 P's ©2007, which augments the Marketing Mix (Product, Price, Promotion and Place) or the 4P’s by the American Marketing Association, Neil Borden and Jerome McCarthy in the study and practices of Marketing.
The Nine P's/9P's help identify marketing problems in a number of areas and help develop marketing’s objectives, strategies, tactics and solutions. The Nine P's are insightful. In Marketing. the "Customer," or potential customers are king, but are missing in the 4P's. There needs to be more focus on the "Customer," or "People." "People," market segments utilizing demographics, geographics, psychographics, behavioral characteristics and technographics are a vital component of the 9P's.
I consult and teach using the concepts and practices of the Nine P's/9P's of Marketing.
In the study and practice of Marketing, Marketing and Brand Managers develop plans, strategies and tactics. The Nine P’s include these important components:
- People (Segmentation and Targeting)
- Look and analyze potential, new, existing and repeat customers and users.
- Look at at your customer and/or potential user. Do you understand the potential customers purchase and usage touchpoints, their habits and how they engage with your brand? Competing for their attention?
- "People" or targeting has almost always been left out of the traditional "Marketing Mix," almost every diagram includes the four P's with Product, Promotion, Place and Price.
- Place "consumer" or "People" or "potential buyers" in the middle of a circle. Find information or data on them. Add the other components in the nine P's.
- In Marketing, from my education, training, research and analysis plus testimony, there needs to be greater focus on the buyer, "customer," or "People," in both planning ad implementation.
- To understand your "People" or market segments, it may utilize many characteristics, including demographics (such as age, family size, family life cycle, gender, income, occupation, education, religion, race, culture, generation, nationality, and social class), geographics, psychographics (buyers are on basis of psychological/personality traits, lifecycle, values), behavioral characteristics (needs and benefits, decision roles, user and usage-related variables, occasions, user status, usage rate buyer-readiness stage, loyalty status, attitude and multiple bases) and technographics (potential buyers may or may not have the software and computer skills. Think employees here too, which may be a vital component or components of the 9P's of Marketing.
- Once a target market is chosen, the organization can develop its marketing strategies to target a market segment or marketing segments.
- Simply it's about Segmentation and Targeting. Add Positioning and you have STP, as a major first step.
- Product and Services
- It's the goods and service combination the firm offers to the target market, including variety of product mix, features, branding, designs, packaging, sizes, services, maintenance contracts, warranties and return policies.
- A product (service) is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
- Place (Distribution)
- There are eight (8) major, strategic components or communication elements which are personal and non-personal communication activities.
- The activities that communicate the merits of the overall product include:
- Personal Selling/ Sales Force: Sales persons
- Listen more than you talk. People who listen more, learn more, plus helps you position your service/product/solution or offering.
- Advertising: There's an expression "It is only creative if the product or service sells." I wanted to add "It is only good media spending if it sells."
- Sales Promotion
- Collateral Materials
- Direct Marketing (also referred to as Action or Direct Response Advertising)
- Interactive/Internet/Web, Digital Media, Social Media:
- Events and Experiences
- Public Relations/PR
- Here are some strategic comments and questions under Promotion:
- What should you promote? Strategic copy points. Reduced sugar for soft drinks?
- To whom should you target and promote? Under "People/"Targeting, target market, audience with media falls here.
- Evaluate the eight different elements under Promotion and your brand's practices. That affects media planning.
- Ask is there a better way? A different promotional mix. There has to be a better way.
- What are your costs in dollars and manpower or person power? Ask "Is there a different way or ways to budget?"
- Look at different strategic partners? Their costs?
- You can discount beverages. You can differentiate with price. Discounting? Special sales? What economic and discount levels should you offer? Look at revenue versus costs.
- What form or combination of promotion should you offer? Features?
- How frequent? Add media planning here.
For more on ideas, concepts and Marketing solutions: Go to LondreMarketing.com and look under “Articles and Resources” and the 9P’s/Nine P’s ©2007. Specifically you will find them detailed at 9P’s/Nine P’s.
Or for more fun, marketing strategies/tactics and facts: Go to Marketing Trivia with 54 stimulating questions and answers at Londre Marketing Consultants, LLC. Here to help. All the best.