The purpose of marketing is to understand the customer and then be an integral part of the organization in using this understanding to maximize the companies sale's profits and markets. Companies create market managers who are responsible for understanding certain segments. When looking for target markets good questions like
Why do customers buy from us and not our competitor?
How often do they shop for the type of products or services we sell?
Do they prefer to buy online or in a physical store?
How price tolerant are they?
Are our products “must have” or simply “nice to have"?
The questions help determine our marketing and sales strategies.
Market Segmentation and Targeting
Before we seek to understand our customers, we start with knowing the overall size of the market for the products we are selling. It helps identify our real target customer if we look at the total market.
The next step is segment the market into similar buying groups. Look at submarkets by age, income, gender, location, or any number of other approaches. It may be difficult to acquire customers in any of those market segments if we try to attract all customers with online promotion or product line.
The goal with market segmentation is to group potential buyers into a segment that is likely to have similar buying tastes and habits. Even that can be challenging. But there is a lot of free information on the Internet. We also evaluate competitive sites already selling into those markets by analyzing their demographics, traffic, and the types of search marketing strategies that they employ.
Once we have identified discrete market segments, we selected one or more target markets to pursue. This process includes understanding what products those consumers are seeking, how they will shop, how much they are willing to pay, and so forth.
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