Presentation on theme: "SETTING YOUR TARGET MARKET. Setting the Target Market The target market for a product is the type of person you are hoping to attract to buy your product."— Presentation transcript:
SETTING YOUR TARGET MARKET
Setting the Target Market The target market for a product is the type of person you are hoping to attract to buy your product. Niche Market – aiming a product at a small group of people (they will have something in common with each other) e.g. a sports car. Mass Market – aiming the product at all people (the mass market) e.g. Soap powder. What will your café do?
Niche Market or Mass Market A niche market product will aim at a certain type of person, e.g.: Age Group Gender Socio-economic group Income group Lifestyle group A niche product is often aimed at a gap in the market – i.e. where nothing or not enough exists to cater for these people already. A Mass Market product appeals to all people, but there will be lots of competition from other products 1.Explain if you are targeting a niche market or a mass market with your café. 2.Explain why you have chosen this market 3.Explain how your café will appeal to this group 4.Explain why you think this type of café will be successful
Marketing Mix Product Price Place Promotion
Product The good or service being produced What is the product? What is the product mix? (combination of products sold) What is the range of products? (group of similar products e.g. number of different burgers)
Price Pricing Strategies: Cost Plus Pricing – adding a mark up to the cost of production. Competitor based – charging the same price as competitors (the market price) Skimming – high price initially. For new and unique products. Penetration – charging a low price to get a foothold into the market. New products only. Discrimination – different prices to different customers
Price What influences pricing decisions? Objectives Production costs Position in life cycle Marketing mix Target market Customer perceptions Competitors prices
Place Means by which products are made available to customers Considerations: Selecting a distribution channel - wholesaler, retailer, direct to consumer. Choosing right sales outlets – maximum outlets or limited distribution? Does it fit with the marketing mix?
Promotion Marketing activities to make consumers aware of the product and persuade purchase Methods: Advertising – TV, radio, billboards, leaflets, brochures, mailing Sales Promotion – coupons, money off, loyalty cards, point of sale, free gifts, samples, competitions
Promotion Methods continued Merchandising – point of sale tactics, display stands, adverts Public Relations – Charity donations, sponsorship, public visits, press relaeases Personal Selling – sales presentations, samples