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Targeting
Part of STP - Segment-Target-PostionTargeting is the second stage of the SEGMENT "Target" POSITION (STP) process. After
the market has been separated into its segments, the marketer will select a segment or
series of segments and 'target' it/them. Resources and effort will be targeted at the
segment.
The first is the single segment with a single product. In other word, the marketer targets a
single product offering at a single segment in a market with many segments. For example,
British Airway's Concorde is a high value product aimed specifically at business people and
tourists willing to pay more for speed.
Secondly the marketer could ignore the differences in the segments, and choose to aim a
single product at all segments i.e. the whole market. This is typical in 'mass marketing' or
where differentiation is less important than cost. An example of this is the approach taken
by budget airlines such as Go/
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Finally there is a multi-segment approach. Here a marketer will target a variety of different
segments with a series of differentiated products. This is typical in the motor industry.
Here there are a variety of products such as diesel, four-wheel-drive, sports saloons, and
so on
What is Marketing?
Some basic definitions of marketing andthe marketing concept
There are many definitions of marketing. The better definitions are focused upon customer
orientation and satisfaction of customer needs.
Marketing is the social process by which individuals and groups obtain what they need and
want through creating and exchanging products and value with others.
Kotler.
Marketing is the management process that identifies, anticipates and satisfies customer
requirements profitably.
The Chartered Institute of Marketing (CIM).
The CIM definition (in common with Barwell's definition of the marketing concept) looks
not only at identifying customer needs, but also satisfying them (short-term) and
anticipating them in the future (long-term retention).
The right product, in the right place, at the right time, at the right price
Adcock.
This is a snappy and realistic definition that uses McCarthy's Four Ps.
Marketing is essentially about marshalling the resources of an organization so that they
meet the changing needs of the customer on whom the organization depends.
Palmer.
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This is a more recent and very realistic definition that looks at matching capabilities with
needs.
Marketing is the process whereby society, to supply its consumption needs, evolves
distributive systems composed of participants, who, interacting under constraints -
technical (economic) and ethical (social) - create the transactions or flows which resolve
market separations and result in exchange and consumption.
Bartles.
This definition considers the economic and social aspects of marketing.
The Philosophy Marketing and theMarketing Concept.
The marketing concept is a philosophy. It makes the customer, and the satisfaction of his
or her needs, the focal point of all business activities. It is driven by senior managers,
passionate about delighting their customers.
Marketing is not only much broader than selling, it is not a specialized activity at all It
encompasses the entire business. It is the whole business seen from the point of view of
the final result, that is, from the customer's point of view. Concern and responsibility for
marketing must therefore permeate all areas of the enterprise.
Drucker.
This customer focused philosophy is known as the 'marketing concept'. The marketing
concept is a philosophy, not a system of marketing or an organizational structure. It is
founded on the belief that profitable sales and satisfactory returns on investment can only
be achieved by identifying, anticipating and satisfying customer needs and desires.
Barwell.
The achievement of corporate goals through meeting and exceeding customer needs better
than the competition.
Jobber.
Implementation of the marketing concept [in the 1990's] requires attention to three basic
elements of the marketing concept. These are: Customer orientation; An organization to
implement a customer orientation; Long-range customer and societal welfare.
Cohen.
Now that you have been introduced to some definitions of marketing and the marketing
concept, remember the important elements contained as follows:
Marketing focuses on the satisfaction of customer needs, wants and requirements.
The philosophy of marketing needs to be owned by everyone from within the
organization.
Future needs have to be identified and anticipated.
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There is normally a focus upon profitability, especially in the corporate sector.
However, as public sector organizations and not-for-profit organizations adopt the
concept of marketing, this need not always be the case.
More recent definitions recognize the influence of marketing upon society
Targeting Influences
For targeting audiences, you need to consider the two kinds of environment that
influence targeting. These are the internal environment and the external environment.
The internal environment is based on the principles that your firm or business is built on,such as the objectives, values, mission and vision. On the other hand, the external
environment includes the following sub environments: social, economic, demographic,
task, political, cultural, global, natural, technological and legal.
The objective is to determine the buyers geographic behavior, psychological behavior,
and demographic behavior, and to create a complete customer profile based on what is
called the 4 Ps: product, price, place and promotion. Ultimately, knowing who the
potential customers for your firm is the main goal. The products that should be offered is
also determined, and each is designated to a specific segment that will find these productsuseful.
The next step is proper product positioning. If your firm has already developed a good
segmentation andtargeting strategy, the next step is to create a positioning strategy. This
means finding a good strategy that properly put a brand in front of customers that will
respond to it. This gives your firm a positive image and be competitive in the market.
Positioning comes in several forms, such as promotion, product, price, advertising,
publicity and selling differentiation positioning.
Kinds of Targeting Strategies
A firm looks for potential market segments. Once its determined these segments, it will
then proceed on targeting segments with services or products whichconsumersbelonging
to that segment would most likely respond to. In other words, a firm targets the needs of
the consumers within each segment. There are several targeting strategiesto achieve this.
The following are some of them.
Niche or concentration marketing a firm can choose to target one specific niche (a
group of customers) with similar interests in the overall market. All of the firmsadvertising resources is poured into this niche. For example, Jordans, a cereal firm,
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targeted a small group of customers that preferred organic products. Niche marketing
works best for small businesses that dont necessarily have to target large audiences. The
disadvantage of course, is the limited sales growth, and a decline in sales can easily kill
that firm.
Mass or undifferentiated marketing a firm may sell products or services and target
them to the entire market. The premise is that customers have identical or very similar
needs. Low costs production can allow a firm to have mass production. The high volume
of sales should compensate for the cheap price per unit product. The disadvantage of this
type of marketing is that nowadays more people would pay premium prices to have
products personalized for their own needs.
Differentiated or selective marketing each segment in the market is targeted to supply
products that fit the common needs of consumers in each market. Thus, a lot of brands
are made for one firm. Consumer satisfaction is likely to go up because consumer needs
are met more closely, and consumer loyalty is at a high. Risks are also spread; as one
brand declines the rest are not that much affected. The disadvantage is that customers
may be confused by the various brands presented them. Its also more expensive to
advertises not just one brand but several brands
Finding and Selling your Target Market
While mass advertising became popular, it was only beneficial to firms that had the
resource to advertise in a large scale. Businesses realized that in order to be successful
they need to do two things: know who their customers are, and second, know who are the
customers who will buy their products. As a business, you cant assume that everyone will
buy your product. That kind of assumption will only make your business fail, as it leadsyou to make wrong decisions, prices, andmarketing strategies.
Firms are successful when they acknowledge only a few are willing to buy their products
or services. By doing so, all resources are directed towards knowing those people and
finding ways to target them. Thats how to make your business stronger; by identifying
your target market. Dont sell products that try to please all. Make very specific goals
and decisions for market planning. Furthermore, understand that people buy products
because they want to satisfy their needs, want to solve problems, and want to feel good
about themselves. Use this information to know what kind of products you want to sell.
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Contextual targeting is the practice of aiming youradvertisingeffortsdirectly at the audience who is interested in your product. At its core, it is an advanced
form of context advertising online or a smart form of context advertising based on the
content that is provided within a website. The aim of contextual targeting is to place your
advertisements on web pages that deal specifically with your product so that you reach
onlyconsumers who are interested in your product or service instead of a wide range of
people who may have little interest in what you are selling.
A great example of contextual targeting is GoogleAdwords which works by scanning the
content of a webpage and then placing advertisements on the page that are directly
related. For example, you may visit a website that is largely about hot dogs, but instead of
receiving advertisements about canines, you receive ads about the food item because
contextual targeting is smart enough to define the difference in the terms and context of
the word dog. Placing yourmarketingprojects in the hands of a group that offers
contextual targeting or placing advertisement on your website using contextual targeting
is a great way to receive higher profits for your business because you are focused directly
on your target audience.
Of course, there is some human logic behind contextual targeting and a great deal of that
comes from extensive behavioral research. By identifying the way people browse the web
it becomes easier to identify what contextual advertising venues are the best for reaching
a target audience. There is of course some subjectivity in contextual targeting as there is
in any marketing venture, but if a reliable service or consultant agency is used than
generally the results of contextual targeting include doubling profits by at least half.
With contextual targeting growing in popularity, especially since Google offers the
service, it is almost essential to use a part of the concept in allonline marketing projects
or risk falling behind in the competitive market. From small to large businesses and
organizations marketing strategies are getting much more competitive online, so it is
important to utilize every tool that is at your disposal for success including contextual
targeting. With the right marketing team or a specialized consultant group contextual
targeting can be used to cater your advertisement to a target audience instead of waiting
for your target audience to find your information, product, or service.
Time On TargetFrom Wikipedia, the free encyclopedia
(Redirected fromTime on target)
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This article has multiple issues. Please helpimprove it or discuss these issues on thetalk
page.
It does not cite anyreferences or sources. Please help improve it by adding
citations toreliable sources. Tagged since July 2008.
It may require cleanupto meet Wikipedia'squality standards. Tagged since July 2008.
It needs attention from an expert on the subject. Tagged since March 2010.
Time On Target (TOT) is the military co-ordination ofartilleryfire by many weapons so that all the
munitions arrive at the targetat precisely the same time. The military standard[who?] is plus or minus
three seconds from the prescribed time of impact. In terms of place, the historical standard was for
the impact to occur within onecircular error probable(CEP) of the designated target. CEP is the
area on and around the target where most of the rounds will impact and therefore cause themaximum damage. The CEP depends on the caliber of the weapon, with larger caliber munitions
having greater CEPs or greater damage on the target area. With the advent of "smart" munitions
and more accurate firing technology, CEP is now less of a factor in the target area.
[edit]Origins
The theory of TOT was first developed by the US Army shortly beforeWorld War IIto help improve
the effectiveness of artillery firepower, but the levels of communication and co-ordination required
to achieve it were not reliably established until after WWII[citation needed]
It had been found during theWorld War I that most of the casualties in an artillery bombardment
occur within the first few seconds. During the first few seconds however troops may be in the open
and may not be prone. After that enemy troops have gone prone and/or sought cover. This
dramatically lessens the casualties fromshrapnel or high explosive blast. World War II Allied
artillery units were often trained to fire their guns in a precise order, so that all shells would hit a
target at the same time, delivering the maximum possible damage.
[edit]Practice
When multiple artillery units are firing it is important to coordinate the TOT so that all units
participating have their rounds land in the target area at exactly the same time as late arriving
rounds do proportionally far less damage than the initial ones. The TOT calculations thus include
distances of participating units and the speed (muzzle velocity) of projectiles involved.
A shorter TOT usually means a smaller or less important target, and the deployment of less
artillery or aircraft. A longer TOT means that the target is large or extremely important, so
preparations for a massive bombardment or air strike will take longer.
As field artillery encompassed fire support, TOT also encompassed alldelivery systems: close airsupport, naval gunfire, attack aviation, and direct fire ground systems. Therefore, TOT now
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designates the exact time and place where all weapon systems now focus firepower to destroy or
neutralize the enemy target
Targeting Strategies
JANUARY 18, 2010
inBEHAVIOURAL TARGETING
What are Targeting Strategies?
Targeting strategies are generally used in termsofadvertising as ways to maximize sales profits bydirecting marketing projects directly at the most likelyconsumer base. There are several differenttargetingstrategies but the basic goal of each remains the same,
to identify the target market or audience who is mostlikely going to be interested in buying your product sothat you reach the people who will make a purchase. Ingeneral, the aim is to spend money reaching onlyconsumers who want your services instead of a wideaudience out of which only a few people may beinterested in your services or products.
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Different Kinds of TargetingStrategies
Along these lines, some of the most popular andfrequently used targeting strategies areconsumermarketing strategy,behavioral targeting, contextualtargeting, and segment marketing. The common link ofmost of these targeting strategies is based aroundidentifying the needs of your target audience andtailoring your marketing efforts so that you meet theirneeds and wants. Of course, in order for any of these
strategies to work to their best they also require theproper consumer research to identify who your targetaudience is.
Offline Targeting Strategy
A popular offline targeting strategy is to create a brandname and style that carries a stigma that your target
audience can identify with. For example, back in thenineties when the economy was still healthyAbercrombie and Fitch marketing affluence andexclusivity at middle class society and as a resultcreated a clothing label out of thin air that was therequirement for all teens and college kids. Theirsuccess did not happen overnight as they participatedin wide consumer research strategies throughout their
period of success to provide what they deemed theiraudience wanted.
Advertise to your Target Audience!
For an online business, targeting strategies includeconsumer research that focuses on the willingness oftheir target audience to spend versus the relative needthey have for a product. It also focuses on the
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consumer behavioral habits of consumers which areroughly defined as browsing habits. Then, the real trickis placing marketing advertisements in an area where
the target audience surfs that is directed at theresearch that defines what will make them bite. Whileit is a twofold process, the payout is that most browserswill take the chance to look at the product offering andmaybe purchase versus a wide scale marketing effortthat only succeeds in a few people taking a glance
target value
Definition
Aimed-for output from a process, or result from ameasurement.
target stock levelDefinition
The amount ofinventoryrequired to meet all demand.
target riskDefinition
The prospectivepolicyholders, divided by race, age, sex and
other demographics.
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target start dateDefinition
The calendar date on which a project or goal is to be initiated. This is an
estimated date that can be adjusted as the day approaches to launch the new
project or endeavor.Project managers set target start dates to begin a
project, but often have to delay and set an "actual start date" when all
unforeseen obstacles have been removed. Also called projected start date.
targeting strategy
Definition
The selection of potential customers to whom a businesswishes
to sellproducts or services. The targeting strategy involves segmenting the
market, choosing which segmentsof the market are appropriate, and
determining the products that will be offered in each segment. A business
offering multiple products can determine if the various segments
should receive one generic product (such as inmass marketing), or if each
segment should receive a customized product (multi-segment), based upon
themarket'sdiversity, maturity, the level ofcompetition and
the volume ofsales expected. Also called targeting
target priceDefinition
An opinion of an analyst or investor about the future priceof a
security. Analysts typically offer target price opinionsfor the next 12 months.
target population
Definition
A particular group of people that is identified as the intended recipient of
an advertisement, product, orcampaign. Also called target audience.
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target market identification
Definition
The process of a marketer in identifying the most profitable areas to offer a
new product or service. Target market identification looks
at characteristics including disposable income, age, and level ofeducation.
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