target market
DESCRIPTION
Explains the critical need for FOCUS in your marketing efforts.TRANSCRIPT
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SMALL BUSINESS SUCCESS
TARGET MARKET
Richard Randolph
Executive Director
Florida Customer Experience Institute
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There is only one valid definition of business purpose: to create a Customer.
The Customer is the foundation of a business and keeps it in existence.
The Customer alone gives employment.
And it is to supply the Customer that society entrusts wealth-producing resources to the business enterprise. ~ Peter Drucker
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A MARKET – A group of
① Customers or potential Customers
who have
② Purchasing power
money (or ability to get it) and
authority to buy
and
③ Unsatisfied needs and/or wants
WHAT IS A “MARKET”?
13-3
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A MARKET – A group of
① Customers or potential Customers
who have
② Purchasing power
money (or ability to get it) and
authority to buy
and
③ Unsatisfied needs and/or wants
WHAT IS A “MARKET”?
13-4
If your target doesn’t
have ALL of these,
it’s not a Market!
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You just won the lottery!
Let’s start a radio station!
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Rule 1: It’s not about you.
Rule 2: Never forget Rule 1.
Your opinion, although interesting, is irrelevant.
Remember: Find a need – then fill it.
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Tune In To W I I F M
What’sInItForMe?
People are infinitely self-interested!
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TARGET MARKETING: SEGMENTING
13-8
Segmentation:
Divide the total market into groups with similar characteristics
“Divide and conquer”
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Targeting:
Select which groups (segments) the firm wishes to serve
Focus!
TARGET MARKETING: TARGETING
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Focus Strategy:
A competitive strategy in which cost and differentiation-based advantages are achieved within narrow market segments.
TARGET MARKETING: FOCUS
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Let’s bake a cake! But which one?
Now, what ingredients will we need?
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PRODUCT PRICE
PLACE PROMOTION
TARGET MARKET
Product
Price
Place (Distribution)
Promotion
THE MARKETING MIXIt’s like your cake mix – different ingredients for each different type of cake.
These “ingredients” are mixed and added, depending on the type of product you offer,
and Customer you want to reach.
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The MARKETING PROCESS
Segment
Target
PRODUCT PRICE
PLACEPROMOTIO
N
TARGET MARKETMarketing Mix
Focus!
Divide and Conquer
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Application: TOYOTA
CAMRY: • Primary Target: Men (53%) Age 35-54
– Likely to have post-secondary education – Employed full-time; Likely owns a home– Have a HH income of $50,000+ – Married, with children between 12-18 yrs of
age
• Secondary Target: Women, ages 35-54, similar demographic traits as primary
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Application: TOYOTA
LEXUS: • The “prestige luxury” market segment • wealthier, image-conscious consumers • car buyers with at least $5 million in
assets• mostly men
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Application: TOYOTA
SCION: • the 17% of Generation Y whom
Marketers consider to be Trendsetters. • In its first full year on the market, Scion
had the lowest average buyer’s age (35) in the automotive industry, and sold around 100,000 customized cars.
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~ Peter Drucker
The aim of Marketing is to know and understand the Customer so well that the product or service fits him and sells itself.
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~ Michael Dell
“It has always made sense to me to build a business based on what people really wanted rather than guessing what we thought they might want.”
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Market Segmentation Variables Segmentation Variables
The parameters used to distinguish one form of market behavior from another for the purpose of market segmentation
Demographic VariablesSpecific characteristics that describe customers and their purchasing power
Benefit VariablesSpecific characteristics that distinguish market segments according to the benefit sought
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Segmentation VariablesDivide the market by:
Geographic Segmentation – cities, counties, states, regions
Demographic Segmentation – age, income, education, gender, – any measurable characteristic
Psychographic Segmentation – group values, interests, and opinions
Benefit Segmentation – product benefits the Customer prefers. (Examples: travel; senior care)
Volume (Usage) Segmentation – volume of product use. (R-F-M)
Recency Frequency Monetary value
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How will you stand out
in a crowd?
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Who are you?
Your perceived identity determines your success
You must convey a deep, defining meaning in the mind of your Customer/Client
Create a “mental pigeon hole” that defines your position in the market place
You must stand out in a crowd – you must be perceived as “special” – unique – “just right for me”
There’s no room for “the ordinary”
Therefore, you must be tightly focused
7–22
The Urgency of Focus
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Tom Peters
Perception
is all there is.
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Almost every kid growing up has learned the lesson of starting a fire with
a magnifying glass. You find some dried leaves or grass, or an old piece of
newsprint. Go outside on a hot summer day,
and focus your magnifying glass into the
tiniest point you can make, then hold it steady
over the target. Before long, you’ll see the target
start to brown, then smoke. It won’t take long
before you have lit a fire.
But you’ll never start a fire… if you:
• don’t focus the lens to its sharpest point, and
• don’t hold the glass steady (if you constantly
move it around, you’ll never generate any heat!)The lesson: Focus on your target
as narrowly as you can,
then hold it steady and keep after it.
How to Start a Fire With a Magnifying Glass
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7–25
“In trying to become all things to all people, you end up becoming nothing to anybody, and basically render yourself invisible in the marketplace.”
~ Geoff Ayling
“You must become a meaningful specific
– not a wandering generality.”~ Zig Ziglar
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A Common Characteristic of Intelligent People
• The Butterfly Effect – Too many options!
• The solution: Pick one thing,stick to it – become a specialist
In 1921, Dr. Louis B. Terman, a Stanford University
psychologist, set about the study of genius by tracking
1,470 genius-level children throughout their lifetime. The
study was known as “the granddaddy of all life-span
research.”The data showed that exceptional intelligence does not guarantee
extraordinary accomplishment. According to the study, what distinguished
those of spectacular achievement from those of low achievement and failure
was, “prudence and forethought,
willpower, perseverance, and desire.” They chose among their many
talents and concentrated their efforts.
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For Life, you must choose one chair.
An Example of Focus
Luciano Pavarotti, the superstar tenor,
tells of the time in his life when he had
to make a critical decision.
“When I was a boy, my father introduced me to the
wonders of song. He urged me to work very hard
to develop my voice. Arrito Pola, a professional
tenor in my hometown of Modena, Italy, took me as
a pupil.
About the same time, I also enrolled in a
teacher’s college.
On graduating, I asked my father, ‘Which shall I
be? Shall I be a teacher or a singer?’
‘Luciano,’ my father replied, ‘if you try
to sit on two chairs, you will fall between
them.’
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Be Smart!Not “being everything” is smart.
Not working on everything, but rather emphasizing selected strengths is
the route to excellence.
For some, this requires a redirection from “doing all and being all” to “being
more” by focusing on less and doing a lot of what you do well.
You can follow this advice by developing selected strengths and
managing or dropping those activities and fantasies you pursue to no
constructive end.
A lot of knowledge about one subject offers the integrating point for all other
knowledge.
One thing!
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I've also learned that only through
focus can you do
world-class things,
no matter how
capable you are. ~ Bill Gates
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Tie two birds together and though they have four
wings, they cannot fl y.
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That’s been one of my mantras — focus and
simplicity. Simple can be harder than complex:
You have to work hard to get your thinking clean
to make it simple. But it’s worth it in the end
because once you get there, you can move
mountains.
~ Steve Jobs
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Real leaders don’t need clutter.
People must have the self-confidence
to be clear, precise, to be sure that
every person in their organization –
highest to lowest – understands what
the business is trying to achieve.
But it’s not easy. You can’t believe how
hard it is for people to be simple, how
much they fear being simple.
They worry that if they’re simple, people
will think they’re simple-minded.
The reality, of course, is just the reverse.
Clear, tough-minded people are the most simple.
~ Jack Welch former CEO of
General Electric
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What about controversy?
Is it OK for some people to not like you?
Polarize people!◦ Some will love you – and others may hate you!◦ The opposite of “love” is NOT “hate” – it’s
APATHY! or INDIFERENCE! Your goal is to create passion – for or
against! Don’t be concerned about critics!
The only result that should scare you is lack of interest!
YES!
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Your effort is the Hammer.
Your Marketing is the Nail.
The sharper the nail, the easier it is to drive it in.
Marketing is the Nail That Builds Your Business
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The essence of Marketing is narrowing the focus.
You become stronger when you narrow the scope of your operations.
You can’t stand for something if you chase after everything.
~ Al Ries and Jack TroutPositioning –
The Battle for Your Mind
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Rule # 5:
The Law of FOCUS
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We succeed only as we identify in life, or in war, or in anything else, a single overriding objective, and make all other considerations bend to that one objective.
~ Dwight D. Eisenhower
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Customers Are From Venus; Companies are from Mars
Your Custome
rs
Your Company
High company knowledge High interest in topic Egos Internal Politics Varied understanding of
Customers
High self-interest Immediate Needs Wants Desires Interests Barriers and blocks
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“Consumers are statistics.
Customers are people.”
~ Stanley Marcus
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