The first question that is important to ask is what is the target market? Where we are targeting instead of chasing the amorphous mass market. Hindustan level has as many as 11 brands directed towards the different market segments. Coalgate Palmolive has tooth paste brands as Coalgate total, Coalgate gel. When we tailor our product to the segment we can really grab an edge over our competitors.
A buyer of a product targeted at every one is willing to settle for only a partial match between his needs and the benefits of the product. The specialized customer is a demanding buyer who will accept nothing but a complete fulfillment of his needs in return for offering his loyalty.
Target marketing facilitates an intimate understanding of what our target customers value. It is critical for the marketers especially of consumers non durables to recognize the need for differentiated marketing for differentiated consumer profile. That is the reason that the companies are venturing into specific segments and niches with the motive of dominating them.
The first point here is to define the segment or niche in terms of those characteristics that distinguish it from others. First we should understand exactly what bases of segmentation could be used to differentiate consumers and what the key issues for these customer groups. It is crucial to come up with definitions of the segments under review.
Following checklist help the marketer for value added targeting:
1. Have you conducted detailed psychographic studies of your niche?
2. Are you resisting the temptation of broad basing your product appeal?
3. Have you checked if your niche has a focused need?
4. Are you trying turning your benefits to meet your niche’s changing needs?
5. Is your product offering benefits redundant to your niche customers.
The following principles are to be followed to make targeting successful:
(a) Use focused brands to cover the possibility of emerging niches as Coalgate Palmolive has launched a quasi-medical tooth paste Coalgate calciguard.
(b) Use a focused benefit to build loyal customers in a chosen niche as Hindustan Ciba-Geigy is offering only disposable contact lenses despite a smaller market.
(c) Use customer tastes to carve out new niches as Brooke Bond Lipton India Ltd., built up consumer profiles before identifying niches for its new tea brand.
(d) Add new benefits to existing products when entering new niches as VIP industries is selling its suitcases at low prices in down market niches.