1. MANAGEMENT OF MARKETING
TARGET MARKETING

2. LEARNING INTENTIONS/SUCCESS CRITERIA
I understand the role of
market segmentation and
target marketing in the
marketing activities of an
organisation
SUCCESS CRITERIA:
I can explain what market segmentation is
I can give examples of market segments
I can explain how market segments allow target marketing to take place
I can explain why target marketing is better than mass marketing

3. MASS v TARGET MARKETING
If you have a product that everybody in the market
is interested in buying or consuming eg bread, chocolate,
milk or soap then you are selling to the MASS MARKET.
However, some customers are interested in buying certain
types of product eg females like to buy cosmetics whereas
men are more interested in buying car accessories.
These types of product can be targeted at the type of
people who regularly buy them by SEGMENTING THE
MARKET.

4. MARKET SEGMENTATION This involves using market research
information to split the consumers in your
market into SEPARATE and IDENTIFIABLE
groups (also known as SEGMENTS) with
SPECIFIC WANTS.

5. MARKET SEGMENTS
Consumers can be split into groups (segments) using the
following characteristics:
AGE – children want different products compared to adults
GENDER – men want different products compared to women
INCOME – people with a high income will buy different products compared to those on a low income
OCCUPATION – products can be marketed to go with certain jobs eg stethoscope for a doctor or nurse

6. MARKET SEGMENTS CONT’D
RELIGIOUS OR CULTURAL BELIEF – people with certain religions buy certain products eg Halal meat for people who are Muslim
GEOGRAPHICAL AREA – people in different countries or areas of the same country have different product preferences and spending habits
LIFESTYLE – many people have a sporting lifestyle and buy products associated with this

7. WHY IS MARKET SEGMENTATION IMPORTANT?
When businesses know about the various
segments within their market, then they can try
and meet the different wants of each segment by
dealing with each of them in a separate suitable
way eg advertising the products in appropriate
places that potential customers will look or
packaging the product differently.
This is known as TARGET MARKETING.

8. TARGET MARKETING EXAMPLE 1
Coca Cola differentiates its products to
different market segments:
DIET COKE for health conscious women
COKE ZERO for health conscious men
CAFFEINE FREE DIET COKE for children
FLAVOURED COCA COLA for other soft
drinkers

9. TARGET MARKETING EXAMPLE 2
Target markets may be smaller, but prices
can be higher.

10. TARGET MARKETING BENEFITS
The benefits of target marketing are:
Increased customer satisfaction as individual needs and wants are being met
Finding new markets to target thus increasing the number of customers and sales income
Customer loyalty can be maintained more easily

11. TARGET MARKETING COSTS
The drawbacks of target marketing are:
INCREASED COSTS (having lots of different products to satisfy consumers can be costly)
COMPLICATED TO MANAGE (many different products can be hard for businesses to keep organised)

12. TASK
Complete Worksheet 25 in your jotters