Potential market targeting, after the market segmentation is included within the ‘marketing strategy’, where the segmentation focuses on the best identification of the potential market by dividing the market in terms of distinct behaviors, needs, characteristics etc, targeting is to evaluate the attractiveness of each market, and selecting single or multiple segments to enter. The expert marketers have designed four ways to approach to the target market;
3.Concentrated marketing and
The pivotal aspect of any targeting strategy is the development of ‘operational objectives’ – defined as the one which provides useful criteria for decision making, and generates standards to measure performance, and serves as a meaningful communication device. An important part of the objective is the development of a precise, disciplined description of the target audience. It is often tempting to direct response advertising or direct marketing at a broad audience; the implicit argument is that everyone is a potential customer. The risk is that a campaign directed at too wide an audience will have to have such a broad appeal that it will be of little interest to anyone and thus be ineffective. It is best to consider directing the advertising to more selected groups for which it is easier to develop relevant, stimulating copy. A marketer need not be restricted to one objective and one campaign. It is quite possible to develop several campaigns, each directed at different segments of the market, or to develop one campaign based on multiple objectives.
The targeting ability of direct marketing can be greatly enhanced by a systematic development of the direct marketer’s database. Someone who knows your address and thus your postal zip code or census block up can obtain information from data base companies about various characteristics of the zip code you live in. This information is then used to assess whether you are a likely prospect for a particular product, on the assumption that your individual profile is similar to the average data available for your zip code. In addition, data are also available that apply to consumers as individuals: lifestyle information supplied on a product warranty registration cards can be purchased, as can driving license and automobile registration data. Any other source to whom consumers reveal their incomes or age or anything else may also sell this information to the large data base companies (such as Donnelly, Metromail etc) that maintain household data bases on almost every household in the United States.
Companies can also acquire names from their data bases in other creative ways: a company making diapers may acquire the names of all expectant mothers who take a childbirth class before delivery – or from newspaper birth announcements after the delivery. Many packaged goods companies attempt to “capture” the names and addresses of users by obtaining them from sweepstakes entries, from those sending in mail-in offers for promotional premiums and gifts, from those who cash in rebates or writing in response to free sample offers, or from those who include a sweepstakes entry form as part of a regular grocery coupon that is redeemed in a store.