The identification of one’s target market is the first step in establishing any business. It is a central finding of market research and can save the company’s resources by defining the demographics of the consumers that they should target. It also informs businesses about the specific needs of the customers, providing them an edge over their competitors. Today’s market is extremely diverse, and numerous brands offer similar products. In such a scenario, businesses must use promotional methods that make their product notable, among others, creating an impression on the customers that would foster trust and build a strong relationship. To achieve this, target marketing can be applied to educate uninformed consumers. However, certain ethical measures should be adhered to.
According to Buehler & Schuett, businesses have the prerogative to practice targeted marketing, with a focus on launching and promoting their existing and new products for a wider range of buyers (2014). Knowing the individualized needs of consumers enables companies to provide them with one-on-one assistance, ensures transparency, and leads to higher customer satisfaction. Also, it leads to reduced complaints as focused support helps educate buyers on how to use the product efficiently (Okeke, 2017). The benefits of target marketing are not limited to businesses but also to consumers, as educated buyers make sensible choices when choosing from a range of products (BBC News, 2014). Target marketing also helps companies tailor products according to the needs of the consumers, set pricing according to market demands, and launch products in the most appropriate avenues (BBC News, 2021).
The benefits of target marketing are numerous; however, to gain its fruitful advantages, companies must ensure that they remain ethical and refrain from deceptive and wrongful advertisements in order to retain customers for a long time.
References
BBC News. (2014). Study: Uninformed consumers waste money on name brands. Retrieved from https://www.bbc.com/news/blogs-echochambers-28451696
BBC News. (2021). Benefits of target marketing. Retrieved from https://www.bbc.co.uk/bitesize/guides/z9w43k7/revision/2
Buehler, B., & Schuett, F. (2014). Certification and minimum quality standards when some consumers are uninformed. European Economic Review, 493-511.
Okeke, K. (2017). Educating your customers: The benefits & how to achieve it. Retrieved from Customer Think: https://customerthink.com/educating-your-customers-the-benefits-how-to-achieve-it/
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