Explaining a Technical Concept or Management Issue Essay

Explaining a Technical Concept or Management Issue - Essay Example Some of them note that our target include home owners and business owners, answers that are all too general to define our real target customers. Being an interior design company that has recently been established, it is important that our marketers exactly know who to target during market campaigns and in all marketing activities. Having been in the market for a relatively short duration, the company needs to establish a niche for itself especially if it has to succeed in the competitive household goods market. It is for this reason that I saw the need to prepare this report; to discuss what target marketing is and to recommend how we can apply it in the business. Definition of Target Marketing Target marketing, micro-marketing or niche marketing involves portioning a market into segments and concentrating marketing efforts on a few main segments or just one segment according to Kurtz (6). Target marketing does not mean that the business excludes individuals who do not fit into the e stablished criteria from purchasing the business products. A target market comprises a group of customers that an organization has decided to concentrate its marketing efforts on and therefore its products towards. ... Demographic segmentation on the other hand involves segmenting the market according to age, gender, education, stage in life, income or other demographic features. Psychographic segmentation on its part involves segmenting the market based on individuals’ lifestyles, values, and attitudes. While there are several other factors that can be used in segmenting a market, the aforementioned factors are most commonly considered. Target marketing is different from general marketing in which case the entire market is targeted by a business in its marketing endeavors (Cohen 27). As an example, Hewlett-Packard, the multinational company that makes electronic devices and computers targets its all-in-one (fax, scan, print) machines at segments of the home office market. The company on the other hand targets more expensive single function units at larger organizations. Importance of Target or Niche Marketing Establishing a well-defined target market is key to an organization’s marke ting strategy according to Pinson and Jinnett (52). Better stated, target marketing can be key to an organization’s success. When an organization engages in target marketing, pricing, promotion, distribution of its products becomes easier and more effective in terms of cost. This it does by focusing all the marketing activities that the business engages in. When an organization markets its products or services to a general market hoping to get a bigger slice of the market, it is as good as firing 10 bullets randomly in different directions when hunting game. This is dangerous and extremely expensive. On the other hand, when target marketing is applied, the situation is analogous to aiming a single mark which is cost effective and potentially gainful.