Doing Better Business With Target Marketing
Marketing is one of those tools companies use to make people aware of their product, but since some products may be used by a certain type of people it does not make sense practically as well as financially to market the product in general, instead target marketing should be deployed. Target market can be based on gender, age, area, population, or income. The best way is to access a census report of the relevant country. In this you can find all the data about every person and with the help of information systems such as management information system it can be converted into a pattern or chart for reference. Mass marketing which spreads the message to all the people and uses mediums such as television commercials, paper advertisements and radio whereas target marketing deploys direct marketing where the promotion will be limited to only to the desired type of people.
Therefore, the best way to go ahead with direct marketing is to get access to customer databases which contain their phone numbers, email address etc. therefore target marketing saves a lot of expenses for such companies as large scale promotion is not used. Here before targeting any type of customer it's better to find the most appropriate type of customers first. Target marketing might work for some but will not work for others. Let's take the example of McDonald's, they are one of the most well-known fast-food chain around the world there before its best suitable for them to go for a large scale promotion rather then trying to woo a selected group of people Whereas a local suburb restaurant might not enjoy the same success with a large scale marketing. Therefore, identification of the prospective customer is important before communication.
Target marketing also has another advantage compared to other mediums, as the promotion is focused to a particular type of field the percentage of customer retention and loyalty also increases. Customer loyalty is one of the best things a company can enjoy as they are sure that when the next iteration of the product is launched the customer will be ready to buy it. The best example of this is the corporate blackberry users in the late 90's. It's a known fact that during that period majority of managers and businessmen used only blackberry mobiles, therefore blackberry marketing was mostly restricted to them.
Another concept of target marketing is Micro-marketing, here is base concept is same except that the company focuses all its resources on a highly selected people. Another difference is that they make their products for an exclusive people. This can be explained with the marketing strategies of e-commerce websites. The website information system tracks the buying pattern of those users and after a particular period it starts suggesting them with a range of products they purchase the maximum. Therefore, people who purchase jeans or denims form such e-commerce websites get such clothing suggestion frequently on their e-mail address. Therefore, target marketing is successful with companies who know that their product will certainly appeal to a specific type of population.