What is the difference between market targeting and target marketing?

Answer 1

Difference between Target Marketing and Market Targeting

The concept of target marketing is the refinement of the basic philosophy of marketing. It is an attempt by companies to relate the characteristics or attributes of the goods and services they provide more closely to customer requirements. Target market is defined as “A set of buyers sharing common needs or characteristics that the company decide to serve.” When mass production techniques were first introduced, out of necessity they imposed a large degree of uniformity upon customers. However such techniques also brought improvement in most people’s standard of living. Many products that were considered luxuries of the rich became available to the ordinary people at affordable price. But he consumers wanted a particular type of product with specific characteristics that suited their requirements more accurately.

By targeting to specific groups of consumers or ‘market segments’, instead of attempting to serve the demand requirements of an entire population for a particular product category, the firm is able to develop more effective marketing programs.

The process of target marketing needs to be carried out systematically and scientifically to be effective. The process of target marketing has three distinct stages:
1- Market Segmentation
2- Market Targeting
3- Market Positioning

Market Targeting: -

Market targeting is not to be confused with the overall process of target marketing. Market targeting is the process whereby one or more of the market segments previously identified are evaluated and selected. The market targeting is defined as “The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.” Market segmentation is only the first essential step in the overall process of target marketing. The firm also has to evaluate each segment and decide how many of the segment to serve. We need not only an indication of the size of the segment, but also estimates of likely turnover and profit and an indication of where the segment is going.
For example, the overall demand for cigarettes in the U.K. is declining, whereas the demand for ‘low –tar’ cigarettes is on the increase as consumers switches to less harmful form of smoking. Tobacco companies also exploiting the low-tar segment of the market in reaction to consumers’ change in taste and in order to retain their share of the cigarette market.