Tutorial: Business Academy Topic: Targeted marketing Prepared by : Ing. Adéla Hrabcová Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/ je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.

Presents a company‘s approach to its customers that nowadays prevails. Targeted marketing means a division of marketing activities into three phases: 1. Market segmentation 2. Market targeting 3. Market position

= division of the total market for a number of homogenous (identical) groups of customers. The market consists of the customers that have different interests, needs, profession, place of living, etc. Segmentation is to find and define groups of customers that have their own specific requirements and the same or similar needs.

The company is often focused on several segments and it often uses several criteria for segmentation. It is for example a division of customers according to the: - age - place of living - job - education - interests - incomes - behaviour and habits - character - etc….

oi Market targeting Means company‘s focus on one or more segments. The company has to consider economical aspects and risks, such as: whether it exists in the segment a ‚corner‘ that hasn‘t been discovered by competition yet strength of competition that affects the segment segment size expected growth of the segment usual manners while shopping possibilities of communication with customers

Segment of pensioners belongs to the largest group. Moreover, this segment has been still growing. On the other hand it is necessary to consider the economic strength of this segment – seniors focus on cheaper goods and services, more often save some money and do not spend large sums of money. In this segment it is also important to choose a proper method of communication – for example, Internet communication would not be effective. Leaflets or personal selling is much more effective. Market targeting - example

Market position of the product is the way the customers see our product. Product or service may be perceived peripherally, customers despite intensive advertisements do not have any information about our product and do not know where to buy it. Therefore, the market position means an increase in awareness of the products, its existence, characteristics and usefulness for the customer, price, quality and other benefits and reasons why the customers should buy the product.

It is possible to: – create an ‚image‘ of the product (e.g. „Camembert – cheese of kings“) – create an ‚image‘ of the company (e.g. „We are on you side.“) – create a ‚brand‘ product (e.g. „Laughing cow“) – use a typical package (e.g. Coca-Cola bottle shape) Market position - activities

Indicators that can measure the market segment: Market potential – the total amount of products that the market is able to buy. It includes also the potential customers who are not and will never be customers of our company. Market capacity- a sum of products sold on the market by all salesmen for particular time. It is measured either as the sum of total sales or total sales volume. Market share – position of the company on the market. It is a share of the real sale of the company to the total market capacity; it is expressed in %. Market saturation- ratio of the market capacity to the market potential. It expresses the possibility of further expansion of sales on the market. Market measuring

EXERCISE Try to determine which segment will the company focus on if it produces: 1. toys for infants mothers, young and middle aged women 2. hearing aids older people, pensioners, people hard of hearing 3. luxurious leather diaries people with higher incomes, managers, businessmen

Fill into the picture indicators for market measuring: Market potential Market share of our company Market capacity MARKET

 KOTÍKOVÁ, H., ZLÁMAL, J.: Základy marketingu. 1. vydání. Olomouc: Univerzita Palackého v Olomouci, ISBN  KOTLER, P.: Marketing, management. 12. vydání. Praha: Grada, ISBN 