One of the most important aspects of marketing is
knowing who your target market is, so for this blog post I wanted to spend some
time discussing the various ways in which a company uses this knowledge to
their benefit in order to sell the optimum amount of products.
Earlier on in the semester we learned about the
basic definition of target market,
which was defined as one or more specific
groups of potential customers toward which an organization directs its
marketing program. Identifying who your target market is and tailoring your
marketing efforts towards them is thus essential for a company, because
otherwise their marketing program could be reaching the wrong group of
individuals entirely- or possibly none at all.
This past week we learned about distribution
channels in class. You may be wondering how target market would fit in here,
however it most certainly does! Knowing who your audience is is incredibly
useful throughout the entire life cycle of a product, but especially at the
level of distribution. This is because marketers need to be aware of something
called density, which is the number of stores in a geographic area
that sell to your target market. By knowing which particular amount of
density the company is working with, marketing efforts can be best matched to
the various types of target market coverage.
In our textbook we learned that there are three
different types of target market coverage. The first is called intensive distribution. Intensive
distribution means that a firm tires to
place its products and services in as many outlets as possible. This type
of distribution is mainly used for convenience products or services, because
these are the types of products that are desired by copious amounts of
consumers and target markets.
The second form of target market coverage we
learned about was exclusive distribution.
All exclusive distribution means is that one
retailer in a specified geographic area carries the firm’s products. As you
can see, exclusive distribution is the exact opposite of intensive
distribution. Exclusive distribution is mainly used for specialty products or
services and retailers favor it for a few different reasons favor it. The first
reason being a limitation for competition. If there is only one business that
is distributing a specialty good in a particular area, all the customers who
want this product have no other choice but to shop at their store. Another
reason why businesses may prefer exclusive distribution is because it provides
a point of difference for them. Point of differences are very important in all
industries, especially retailing, because it lets your customers know what is
different about their products and why they should buy them over any others.
The third form of target market coverage we learned
about was called selective distribution.
Selective distribution is a form that lies somewhere in between the two other forms
of distribution. This is because it occurs when a firm selects a few retailers in a specific geographic area to carry
its products. Selective distribution is thus the most common form of
distribution intensity because it provides a firm with the benefits from both
exclusive distribution and intensive distribution.
I hope that this post helps clarify the reason why
being aware of your target market is very important for a firm. It not only
helps you customize your marketing campaign to the right viewer, but it even
helps you know where you should be selling your actual products at the
distribution level.
That’s all for now,
-XOXO M
Sources:
Marketing, 12th Edition Roger Kerin, Steven Hartley, William Rudelius. McGraw-Hill: New York, 2015
http://www.vpasp.com/blog/How-Identify-Your-Ecommerce-Target-Market/
http://www.slideshare.net/phanquoccuong/sales-and-distribution-management-11306715
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