Question

Michelle has asked you to send her a memo that explains the target market for MM’s new product. Because a global market is under consideration, she wants you and Elena to meet for an in-depth discussion of the different characteristics of your target market before sending her the information.

Elena meets you for coffee the next morning to explain her reasons for advocating the global market. As you finish your discussion, Elena stops and says,

"We've discussed a lot of different market segments to target with the new product, but the choice comes back to you," says Elena. "What's your final decision on the target market that we should focus on? Are you going to propose that we try to market this product globally?

You sigh, knowing this is a key decision in your marketing strategy. "I appreciate our discussion today. I'm going to have to do some more research to determine the exact market and if we should go global or not."

You know Michelle is expecting a detailed description of your targeted market segment including justification for selecting the market. You also need to remember to include your recommendation for or against marketing globally.

• What are the demographic characteristics of your target market and why are they important?
• Where is your target market located geographically and why is that important?
• What psychographic characteristics define your target market? How do these impact your marketing strategy?
• What behavioral characteristics are shared by your target market? Why are these important?

Answer 1

1) Demographic Information tells us about the age, sex , race, income, employment and literacy rate. If we want to sell product to particular group of people we have to segment them on basis of age, sex, education, literacy rate and financial condition. It helps the organization to know the potential size of the target market. if i want to open a stationery shop, the most profitable deal for me would be tom open it in area with maximum number of schools or coaching centers or places where young students or college graduates reside because my target audience is students who will make use of books, pens, registers and other stationery items.Such information is important to develop a proper marketing strategy, to know your present and potential customers, to decide about budget allocation to sales, capital and advertising.

2) The geographical location of target market is also very important. The geographic locations which are more populated, people have high per capita income, has huge potential is the centre for attraction of the organization to sell its products.Now, if I want to open a very high range coffee and snacks bar having expensive quality products, then it will most profitable for me to open it in a rich, posh area, where rich and wealthy people reside so that they can buy my products.The appropriate geographical location decides the sales volume of your product, present and potential customers.

3) Psychographic characteristics segment the target market on basis of traits, attitude, beliefs, values, interests, lifestyle etc. Some consumers prefer to buy costly products only, other may go for quality only. Still other feel in buying those products which give one product free along with the main product. Some will like to buy only branded products others will go for roadside products. Some people are loyal customers. So such people will buy from particular shop or store because of the confidence they have in such stores. A product like chocolate can be marketed as a sweet emotional relationship building gift. It can be advertised like this on festivals and other occasions. This strategy help you to hit the people with right psychology and increase your ad spend and return on investment.

4) Behavioral Characteristics study the behavior pattern of your target audience. It studies how a customer respond to your product, the frequency of purchase of the product, the benefits consumer get from the use of the product, what factors induce the consumer to buy a product, occasions when the consumers are purchasing your product, likes and dislikes of the product.Example A consumer buys a face wash. what are the benefits he get from it. Whether he wants to use it for oily, dry or combination skin. He may want to use if for getting fairer or tanner. He may want to use it to protect skin from sun rays or as solution to remove wrinkles or to get moisturized skin, or to save skin from pollution. These are important as these help in the development of product in line with the behavior of the consumers. This helps in increasing sale volume and profits.