Define Target Marketing. Mention some of the target marketing strategies. What are the steps of Target Marketing?

Target marketing is the process of assessing the relative worth of different market segments and selecting one or more segments in which to compete. These become the target segments. Titan is using the target marketing strategy very effectively. German car manufacturer Mercedes target high-status consumers with experience and prestigious motor cars.
According to David Cravens and others “ Target market is a group of existing or potential customers within a particular product market towards which an organization directs its marketing efforts”.

Target marketing strategies
 

Total market approach: A company develops a single marketing mix and directs it at the entire market for a particular product. This approach is used when an organization defines the total market for a particular product as its target market.

Concentration approach: An organization directs its marketing efforts toward a single market segment through a single marketing mix. The total market may consist of several segments, but
the organization selects only one of the segments as its target market.

Multi-segment approach: An organization directs its marketing efforts at two or more segments by developing a marketing mix for each segment.

STEPS IN TARGET MARKETING
It involves the following four major steps:
1) Market segmentation: Markets are segmented based on a certain characteristic such as sex, education, income, age, etc.
2) Market targeting: It refers to evaluating each market segments attractiveness and selecting one or more of the segments to enter. Thus target marketing and market targeting are not the same.
Market targeting is only a step in target marketing.
3) Designing the marketing mix: After selecting the segment, the next step is to design a suitable product and other marketing mix elements for each segment selected.
4) Product Positioning: Market segmentation strategy and market positioning strategy are like two sides of a coin. Target marketing begins with segmentation and ends with positioning.