Target markets, Purpose of market research and Marketing positioning

Question 1

What is a target market?

Answer 1

A target market is a group of people with similar characteristics that are likely to purchase a business’s product.

Question 2

Why is a target market so important to a business?

Answer 2

They are the ones who are most likely to purchase the businesses product once or repeatedly

Question 3

Why should businesses identify a target market?

Answer 3

Uses marketing resources more efficiently
More relevant and noticeable
Understand buying behavior
Ability to Refine strategies that influence

Question 4

What are the three main approaches to identifying a target market?

Answer 4

Mass marketing approach
Market segmentation approach
Niche market approach

Question 5

What is the Mass marketing approach?

Answer 5

Aims for a large range of customers and for a large demand for a standard product.

Eg. Fast food restaurants

Question 6

What is the Market segmentation approach?

Answer 6

Where the total market of a business is divided into different groups, even though they share similar needs.

Eg. Hygiene products for men and women being different
or a ‘premium’ version of a product to appeal to a different demographic.

Question 7

What is the niche market approach?

Answer 7

A narrowly selected target market segment to avoid direct competition with the larger brands. Profitable because the needs of customers in these markets often neglected by larger businesses.

Eg. Personal trainers for the elderly