Antecedents of Target Marketing
As stated in Lamb et al. (2014), to segment a market successfully, a marketer must consider certain criteria.
A market segment must be:
1. substantial (have enough potential customers to be viable),
2. identifiable and measurable,
3. composed of members accessible to marketing efforts, and
4. responsive to particular marketing initiatives to differentiate it from other market segments.
In marketing, segmentation is used to create market segment profiles for the purpose of targeting consumers. Marketers identify a target market as one of the following three different strategies:
- Undifferentiated targeting,
- Concentrated targeting, and
- Multi-segment targeting.
Lamb et al. (2014) explain that an undifferentiated target marketing strategy:
Assumes that all members of a market have similar needs that can be met with a single marketing mix. A concentrated targeting strategy focuses all marketing efforts on a single market segment. Multi-segment targeting is a strategy that uses two or more marketing mixes to target two or more market segments. (pp. 131-135)
To demonstrate your understanding of segmentation, target marketing, and positioning, watch the video case study on Numi Organic Tea and answer the related questions by following the instructions.
References - Lamb, C. W., Hair, J. F., & McDaniel, C. (2014). MKTG7. Mason, OH: Cengage.