Chapter 5: Targeting Markets

Chapter Summary:

In this chapter, we examine decisions affecting the selection of target markets.  This is a critical point in marketing planning since all additional marketing decisions are going to be directed toward satisfying customers in the markets selected.  We explore what constitutes a market and look at basic characteristics of consumer and business markets.  We see not all markets are worth pursuing, and marketers are often better served developing a plan identifying specific markets to target.  In particular, we look at the process of market segmentation where larger markets are carved into smaller segments offering more potential.  Our discussion includes methods used to identify markets holding the best potential.  Finally, we discuss the concept of product positioning and see how this fits into target marketing strategy.

Key Issues:

  • What is a Market?
  • Consumer and Business Markets
  • The Need for Target Markets
  • Targeting Markets through Segmentation
  • Positioning Products and Services

Links to Cited References:

(note: Some links may no longer be active, if this is the case check Assessing Marketing Stories for hints on accessing.)

  1. Horovitz, B., “Marketing to Kids Gets More Savvy With New Technologies,” USA Today, August 15, 2011.  http://www.usatoday.com/money/industries/retail/2011-07-27-new-technolgies-for-marketing-to-kids_n.htm
  2. “Household Final Consumption Expenditure – 2009,” The World Bankhttp://data.worldbank.org
  3. “Consumer Expenditures in 2009,” Bureau of Labor Statistics – United States Department of Labor, October 5, 2010.   http://www.bls.gov/news.release/cesan.nr0.htm
  4. Hutt, M.D. and T.W. Speh, Business Marketing Management: B2B, South-Western College Publishing, 2009.
  5. Schmidt, G., “Girls at Comic-Con Find Marketers Ready for Them,” New York Times, August 10, 2010. http://www.nytimes.com/2010/08/11/business/media/11adco.html
  6. Martin, H., “Universal Studios Turns to Folklore to Woo Latinos for Halloween,” Los Angeles Times, September 29, 2010.  http://articles.latimes.com/2010/sep/29/business/la-fi-llorona-20100929
  7. For a list of links to business directory services see the Market Research section of KnowThis.com. http://www.knowthis.com/weblinks/marketing-research/
  8. Johnson, M.W., “How to Disrupt an Overlooked Market,” BusinessWeek, June 2, 2011. http://www.businessweek.com/innovate/content/jun2011/id2011062_785016.htm
  9. Elliott, S. and T. Vega, “TV Steps Up Pitch to Hispanic Market,” New York Times, May 17, 2011.  http://www.nytimes.com/2011/05/18/business/media/18adco.html
  10. Gooch, L., “Advertisers Seek to Speak to Muslim Consumers,” New York Times, August 11, 2010.  http://www.nytimes.com/2010/08/12/business/media/12branding.html
  11. NIKEiD website.  http://nikeid.nike.com/nikeid/index.jsp
  12. Newman, A.A., “Lots of Laughs, and Even More Sales,” New York Times, December 21, 2010. http://www.nytimes.com/2010/12/22/business/media/22adco.html
  13. Hughlett, M., “U.S. Food Giants Tailor Products, Marketing to International Palates,” Los Angeles Times, March 25, 2010.  http://articles.latimes.com/2010/mar/25/business/la-fi-packaged-foods25-2010mar25
Chapter 6: Product Decisions
Chapter 4: Understanding Customers