Targeting in marketing is a strategy that focuses on specific customer segments rather than attempting to reach the entire market. This involves defining customer segments based on unique characteristics such as demographics, psychographics, business industry, and geographic areas. Targeting is essential for a holistic marketing strategy, influencing advertising, customer experience, branding, and business operations. It enables companies to speak directly to defined audiences, attract high quality leads, differentiate their brand, build customer loyalty, and improve products and services.
Targeting Strategies in Marketing with Indian Examples:
- Undifferentiated (Mass) Marketing
- Differentiated (Segmented) Marketing:
- Niche Marketing
- Micromarketing (Local or Individual Marketing)
- Customized Marketing
- Undifferentiated (Mass) Marketing:
Undifferentiated marketing, also known as mass marketing, is a strategy where a company offers the same product or service to the entire market without segmenting it. This approach assumes that the target audience has similar needs and preferences, and a standardized marketing mix can effectively reach a broad spectrum of consumers. The emphasis is on achieving economies of scale and broad brand exposure.
Characteristics:
1. Standardized Offering:
The company provides a uniform product or service without variations to meet the diverse needs of consumers.
2. Single Marketing Mix:
A consistent marketing mix, including product features, pricing, distribution, and promotion, is applied across the entire market.
3. Mass Production:
Products are often produced in large quantities to reduce per unit costs, taking advantage of economies of scale.
4. Wide Reach:
The goal is to reach the maximum number of consumers, irrespective of demographic or psychographic differences.
5. Cost Efficiency:
Undifferentiated marketing aims for cost efficiencies by streamlining marketing efforts and utilizing standardized communication channels.
Example:
Colgate Toothpaste:
Colgate, a renowned oral care brand, practices undifferentiated marketing by offering a standardized range of toothpaste to the entire market. The assumption is that consumers share similar dental care needs, and a universal product caters to a broad audience.
Advantages:
1. Cost Savings:
Economies of scale lead to lower production and marketing costs per unit.
2. Simplicity:
Simpler marketing strategies and messaging facilitate easy implementation.
3. Brand Recognition:
Broad exposure contributes to widespread brand recognition.
Challenges:
1. Limited Personalization:
Lack of customization may result in a disconnect with specific consumer segments.
2. Risk of Irrelevance:
Assumes homogeneity in consumer needs, risking the product becoming irrelevant to certain segments.
3. Intense Competition:
Intense competition in mass markets may require higher promotional spending to stand out.
Undifferentiated marketing is suitable when the product or service has broad appeal, and customization is unnecessary. It’s commonly employed for everyday consumer goods and services with universal demand.
Example: Salt Brands
Indian companies producing basic commodities like salt often employ undifferentiated marketing. Brands such as Tata Salt or Annapurna target the entire market with a standardized product, assuming that the basic need for salt is similar across diverse consumer groups.
(2) Differentiated (Segmented) Marketing:
Example: Hindustan Unilever Limited (HUL)
HUL is known for employing differentiated marketing by offering a variety of products to cater to different consumer segments. For instance, their laundry detergent lineup includes brands like Surf Excel for premium consumers, Rin for the midmarket, and Wheel for the budget conscious.
(3) Concentrated (Niche) Marketing:
Example: FabIndia
FabIndia specializes in concentrated marketing by focusing on a niche market interested in handmade, traditional Indian products. The brand caters to consumers who value authenticity and are willing to pay a premium for unique, artisanal items.
(4) Micromarketing (Local or Individual Marketing):
Example: Local Kirana Stores
Local kirana (grocery) stores in India often practice micromarketing by tailoring their product offerings to the specific preferences of the local community. These stores stock products based on the demographics and cultural preferences of the neighborhood.
(5) Customized Marketing (OnetoOne Marketing):
Example: MakeMyTrip
Online travel platforms like MakeMyTrip use customized marketing by providing personalized travel recommendations based on users’ past bookings and preferences. This one-on-one approach enhances the user experience by offering tailored travel options.
(6) Socially Responsible Marketing:
Example: ITC’s eChoupal Initiative
ITC’s eChoupal initiative engages in socially responsible marketing by empowering farmers through digital technology. By providing farmers with access to information, eChoupal contributes to sustainable agriculture practices and community development.
(7) Online Targeting Strategies:
Example: Flipkart
E-commerce platforms like Flipkart utilize online targeting strategies to reach specific audiences. Through data-driven approaches, Flipkart tailors its product recommendations and advertisements based on users’ online behavior, preferences, and demographics. Choosing the appropriate targeting strategy in the Indian market depends on factors such as cultural diversity, regional preferences, and the socioeconomic landscape. Effective targeting ensures that marketing efforts resonate with the diverse population, contributing to the success of brands in the Indian context.