Question

The discipline of marketing puts great emphasis on the importance of target markets. Why is this important to marketing? Explain.

Answer 1

Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a specific group of customers within that audience. Discipline of marketing is very important in today’s world. Below are few the importance of the same:-

• Reach the Right Audience

Once you’ve identified the target market, the target audience – the intended recipient of the advertising message -- can be defined. Many times the market and the audience are the same. When one person is the end user and another is the purchaser, the target market and target audience differ.

• Cost-effective Strategies

Once you know who you are targeting, it is much easier to make decisions on media allocations. If your target market is young women, there is no need to purchase ad space in every magazine.

• Focus on Potential customers

Organizations don't have the time or resources to be able to reach everyone with a product message. Identifying a target market allows marketers to focus on those most likely to purchase the product.

• Build deeper customer loyalty.

The ability to stand out from competitors by reaching your customers on a more personal, human level also creates longer-lasting relationships. When customers identify with your brand and feel like you are an advocate for their specific perspectives and needs, they will likely be more loyal to your brand and continue to do business with you over a longer period of time.

• Differentiate your brand from competitors.

When you stop trying to speak to every customer in your market and start focusing on a smaller segment of that audience, you also start to stand out from competitors in your industry.