Monday, April 2, 2012

Market Strategy and Target Market

Market Strategy

Market strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage (Baker, 2008, p. 3). This is the point where an organization identifies or attempts to invent a need for something. The very existence of the organization grows from this seed and it is marketing strategic that helps define the market environment; the vision or mission; the initial business objectives and goals and the 'brand' with tangible and intangible aspects.
A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena (Wikipedia, 2009).
A marketing strategy can consider many factors. Of those many factors, some are more important than others. Because each strategy must address some unique considerations, it is not reasonable to identify 'every' important factor. However, many are common to all marketing strategies (Business resource software, 2009). Some of the more critical are target market, marketing mix and market segmentation.

Target Market

Target market is the part of the qualified available market the company decides to pursue. For example, a company might decide to concentrate its marketing and distribution effort on the East Coast of the USA. The company will sell to a certain number of buyers in its target market (Kotler & Keller, 2008, p. 120).  They can choose a target group of customers by size, type of customer, need for service, or other criteria. Within the target group, they can identify the most profitable customers and design stronger offers to build better relationships with them (Kotler & Keller, 2006, p. 484). This is useful for marketing planning. If the company is not satisfied with its current sales, it can take a number of actions. It can try to attract a larger percentage of buyers from its target market. It can lower the qualifications for potential buyers. It can expand its available market by opening distribution elsewhere or lowering its price or it can reposition itself in the minds of its customer (Kotler & Keller, 2008, p. 121).  The target market of each economy beer brand as follows: (1) Chang beer target market is 22-45 years old, easy going, fun, and value friendship, (2) Leo beer target market is younger and young adult, affluent groups, and a personality that appeals to value heritage and (3) Cheers beer target market is 22-30 years old, easy going urban residents who are open minded, fun, genuine, and value friendship. 

Source: Nisarat A.
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