M2 Part 2: Market Targeting

Question 1

What is Market Targeting?

Answer 1

• It is the selection of potential customers to whom a business wishes to sell products or services

Question 2

What is a Target Market, versus, Target Audience?

Answer 2

• Target Market: whole group of people a brand wants to sell to
• Target Audience: a narrower group of people within your target market that you aim to reach with specific advertising strategies

Question 3

How do we evaluate Market Segments?

Answer 3

• Segment Size and Growth: company must find the segment with the right size and right growth
• Segment Structural Attractiveness: examine the segment’s structural factors to see its profitability (Competitors, Substitute Products, Buyers’ bargaining power, Suppliers’ bargaining power)
• Marketing Organization Objectives and Resources: assess if the objectives and resources of the company are aligned with the targeted segment