Uses of target market information
The target marketing information gathered is an essential part of:
Û The development of a market analysis
Û The development of a marketing planTarget marketing plan
Once you have determined and described your target market or target markets,
you need to design a target-marketing plan for each target market or groups of
target markets.
Target marketing involves the process of analyzing and segmenting the total
market to identify, in order of importance, the market segments that will yield
the best return on investment of resources, people, and time. It is limited to
homogeneous market segments.
Use target marketing to gain a competitive advantage that should be more
profitable to the business.
Target marketing is not mass marketing. Here is an example of the difference
between target marketing and mass marketing:
For example:
A business specializing in the installation of new fences might mail a
handbill to every household in the city. This would be a small
example of mass marketing. The results achieved by this sort of
mailing are typically as little as .05% of the handbills mailed.
The same business could obtain a list of all the new houses built in the
last 18–24 months and then mail only the handbill to those
households.
This would be an example of target marketing. The results of this target
approach can boost results to 3–5% (or even more) of the handbills
mailed.^