What is Marketing ?
As we all know that marketing activity is different from the sale, transaction or trade. Marketing is the execution of the business that directs the flow of goods and services from producer to consumer or user side.
Target Market
During these visible symptoms more companies choose to be the intended target market, this situation is because they realize that they basically can not serve all customers in that market. Too many customers, highly dispersed and scattered and varied in the demands of the needs and desires. So the meaning of the target market is: A market composed of potential customers with specific needs alau desire that may well be able to take part in buying and selling, in order to satisfy the need or desire.
Because consumers are so heterogeneous that the company needs to mengkelompokkan market into market segments, and then select and set a specific market segment as a target. Given this, the company helped to identify opportunities to better market, so companies can develop the right product, to distribution channels and advertising menentuan appropriate and efficient and able to adjust the price for goods or services offered for each target market.
Target market is a group of consumers or customers that specifically targeted marketing effort for a company.
Placement Target Market is an activity that contains and assess and select one or more market segments that will be entered by a company. If the company wants to determine which market segments will be entered, then the first step is to calculate and assess porensi profit from the various segments of the existing earlier. So in this case, marketers must understand very well about the techniques in measuring market potential and forecasting demand in the future. The techniques used are very useful in selecting target markets, so that marketers can avoid mistakes that might happen, or at least reduce it as small as possible in practice. So to that end the company should divide the market into the primary market segments, each segment of the market and then evaluated, selected and applied to a particular segment as a target. In fact the company can follow one of five market coverage strategy :
- The concentration of the single market, is a company to concentrate its activities in one part rather than the market. Smaller companies usually do this option.
- Product specialization, a company decides to produce one type of product. For example, a company decides to produce only electric typewriters for a group of customers.
- Market specialization, for example, a company decides to make all kinds of typewriters, but directed to a small group of customers.
- Selective specialization, a company engaged in various business activities that had no relation to the others, except that each business activity that contains an interesting opportunity.
- Overall coverage, which is commonly carried out by a larger industry to outperform the market. They provide a product for every person, in accordance with the purchasing power of each.
