Q1.‘Why bother target marketing? Bymarketing my product to the entire market, I have a greater chance of success.’Discuss this statement by comparing the benefits of using targeting as opposedto...

Q1. ‘Why bother target marketing? By marketing my product to the entire market, I have a
greater chance of success.’ Discuss this statement by comparing the benefits of using targeting as
opposed to not using it. Your discussion should demonstrate the link between targeting and the
overall role and philosophy of marketing. Illustrate your answer with a company of your choice.
In a business, first and most important step is to identify the right customers and right
marketing strategies for product. A target market consists of group of the customers that are
target customers of a business. The target customers are those who are considered that they
will most likely to buy the product. Thus target marketing helps in identifying most
appropriate and prospective customers in more efficient manner. It gives a customised
message to target customers in more focused way for increasing the sales. Target marketing
is one of the most effective marketing strategies that is considered very important for the
growth and success of the business. It provides various benefits to the organisation –
 Easy to define the features and benefits of the product to the target customers-
In target marketing, it is easy for the company to define the features and
benefit of the product to the target audience. For example – A photographer
can define the benefits of its services by shooting the photos of different
occasion like weeding, birthday party or some formal occasions to its different
target customers.
 Easy to communicate the message – If the target customer is defined, it is easy
to communicate the right message at the right time to the right customers. For
example – Pepsi –Cola Company knows that its brand Mountain Dew is
famous for its sports image. So company has prepared its ad campaign with
music and sports to target the sports watching audience.
 Easy to analysis the situation and strategies for marketing – Target marketing
helps the company to analysis the situation of the marketing and the various
strategies to promote the product in the market. For example – Photographer
can leave his business cards at various offices and bridal shops to advertise its
services.
Thus target marketing helps a company to take proactive approach to find the target
customers and to use right and effective strategies to promote the product and services in the
right manner. It helps small business owners to achieve the maximum results and building the
right image of the company.
Q 2 Explain product positioning. Discuss whether it is necessary to position a product or can a
product succeed in the market without a formal positioning strategy? Use examples to illustrate.
Product positioning is an act of designing and developing the image of product in the
market to occupy a distinctive place in the minds of the target market. It helps in product
positioning relative to competitive product in the mind of the consumers by attributes, use or
applications, product users, product class, or competitors. The main goal of the product
positioning is to locate the brand in the minds of the consumers to get the potential benefits of
the product to the company. A good positioning strategy helps a company to prepare a good
marketing strategy that makes the product effective and competitive in a very unique way.
Thus we can say that product position is a way of creating a unique, consistent, and a
recognized customer’s perception about the image of the product offered by the company. It
is not possible for a firm to get success and growth without product positioning in the market.
There are various benefits of the product positioning in the market like it differentiates the
product from the competitors. For example – Domino’s Pizza is famous for its hot pizza in
quick deliver with good quality. It helps to define the features and benefits of the product or
services in the market that create a different image. For example – Barista coffee house is
famous for its sober and stylish ambience with great quality of coffee. It helps the company
to analysis the market situation and features of the product for making it competitive in the
market. It helps in increasing the sales and revenue of the product by increasing the brand
image of the product. Product positioning is important because it helps in analysing what the
customer’s demand and expectations from the product. It helps in reducing the gap between
the customers’ expectations and features of the product offered by the company.
Q 3 Having identified the major customer segments in a market, a company must select its target
or targets. What criteria might it use to do this? Provide examples.
Market segmentation is important marketing variable because it is key variable in
matching the demand and supply of the customers by offering product and services and it
directly affects the marketing mix variables of the company. In a business, first and most
important step is to identify the right customers and right marketing strategies for product. A
target market consists of group of the customers that are target customers of a business who
are considered that they will most likely to buy the product. Target markets are the group of
the individual that can be separated in to different segmentations like –
 Geographic Segmentation – It identifies the locations of target customers on
the basis of geographic conditions like nations, states, regions, countries, cities
etc.
 Demographic / Socio economic Segmentation – It includes divide the market
into groups on the basis of gender, income, education, family, age, occupation,
religion, race and life cycle etc.
 Psychographic Segmentation - Psychographic is the science of suing both
psychology and demographic factors to understand the consumer better. It is
based on personalities, attitudes, Values and life styles.
 Behavioural Segmentation – In this segmentation, consumers are divides on
the basis of their knowledge and responses towards a product. It includes
mainly the different behaviours of customers
 Product related segmentation - It is related to product and its features.
A company has to use the market segmentation on the basis of following criteria –
 It is important that it should be possible to measure.
 The strategy of market segmentation should be large...