What is meant by “target market”? The focus of marketing effort is people.The goal is to reach a subset of the population who may be interested in your particular product.That group of people is your target market.
The term target market is used because that market is the target at which you aim all your marketing efforts. The markets you are trying to reach are people with common characteristics that set them apart as a group. The more you know about a target market, the more precisely you can develop your marketing strategy.
Describe the probable demographic characteristics of the target market for the following products (Measurable statistics such as age, income, or occupation): Jaguar: Definitely the wealthy, upper class or higher middle class people. Most likely an older, wealthier target market. Chevy Cobalt: Middle class people who are looking for an affordable car with good gas mileage. Age of the target market is probably mid-20s to senior citizens. McDonalds: From 5 years old to 95 years old. Lower Class, Middle Class, and even Upper Class people buy and consume McDonald’s products.
They market happy meals for kids, late night snacks for young people, breakfast and coffee for older people. Ruby River Steak House: Aims their products at all age and classes as well. They advertise it as a family establishment with good food. I don’t have one here in Louisiana but it is similar to our Outback Steakhouse which has that target market. Is it possible to identify a single market for two distinctly different products? Yes it is, there are many product combinations that can interest a single market. It builds sales in a business, and promotes other business as well.
To understand the key sources of network value, it’s important to recognize the structure of the network. Some networks derive most of their value from a single class of users. An example of this kind of network is instant messaging (IM). While there might be some add-ons for the most popular IM tools, they don’t influence most users’ choice of an IM system. You pretty much choose one IM tool over another based on how many of your contacts you can reach. Economists would call IM a one-sided marketone-sided marketA market that derives most of its value from a single class of users (e. . , instant messaging). (a market that derives most of its value from a single class of users), and the network effects derived from IM users attracting more IM users as being same-side exchange benefitssame-side exchange benefitsBenefits derived by interaction among members of a single class of participant (e. g. , the exchange value when increasing numbers of IM users gain the ability to message each other). (benefits derived by interaction among members of a single class of participant). But some markets are comprised of two distinct categories of network participant.
Consider video games. People buy a video game console largely based on the number of really great games available for the system. Software developers write games based on their ability to reach the greatest number of paying customers, and so they’re most likely to write for the most popular consoles, first. Economists would call this kind of network a two-sided markettwo-sided marketNetwork markets comprised of two distinct categories of participant, both of which that are needed to deliver value for the network to work (e. g. video game console owners and developers of video games). (network markets comprised of two distinct categories of participant, both of which that are needed to deliver value for the network to work). When an increase in the number of users on one side of the market (say console owners) creates a rise in the other side (software developers), that’s called a cross-side exchange benefitcross-side exchange benefitWhen an increase in the number of users on one side of the market (say console owners) creates a rise in the other side (software developers).. Example – IM is considered a one-sided market, where the value-creating, positive-feedback loop of network effects comes mostly from same-side benefits from a single group (IM members who attract other IM members who want to communicate with them). Video game consoles, however, are considered a two-sided network, where significant benefits come from two distinct classes of users that add value from cross-side benefits by attracting their opposite group. In the game console market, more users of a console attract more developers who write more software for that console, and that attracts more users.
Game availability is the main reason the Sony PlayStation 2 dominated over the original Xbox. It is possible that a network may have same-side and cross-side benefits. Xbox 360 benefits from cross-side benefits in that more users of that console attract more developers writing more software titles and vice versa. However, the Xbox Live network that allows users to play against each other has same-side benefits. If your buddies use Xbox Live and you want to play against them, you’re more likely to buy an Xbox. ) Can you think of other product combinations that would interest a single market?
Taking a closer look at businesses, you can actually see cases where a particular target market for one product is more likely to buy another. The example that was given for this assignment was consumers that prefer Apple products that drive Volkswagens. Another example of this would be the target market of 18 – 25 year old males. There are a number of products that this particular set of individuals are marketed to, ranging from stereo equipment to video games. The coalition between hip hop clothing (urban wear) and high tech music devices to me would be the strongest.