Chapter 9 Targeting a Market 149 Copyright Goodheart-Willcox Co., Inc. focus on satisfying. These are the people at whom a company aims to sell its goods and services. They are also the people most likely to buy the products. An accurately identified target market meets these four criteria: • clearly defined wants and needs that the busi- ness can meet • enough money to buy the product • willingness and ability to buy the product and • includes enough customers to be profitable. Consumer markets are diverse. Marketing professionals spend much time, effort, and money determining the best markets for the products or businesses they promote. They do not want to waste marketing dollars on an audience who does not want or need their products. Target marketing uses unique marketing mixes of product, price, place, and promotion for a product. Marketing budgets and energy are used where sales are most likely to happen, which is in the target market. For example, the target markets for specific cars are different from the mass market for cars. Can you imagine a car manufacturer making one car that would meet the needs of every person in the mass market? Think about the many different needs customers have for their cars. One group wants a sports car for enjoyment driving. Another group wants a minivan to hold a team of kids and all their sports gear. Yet another group wants a pickup truck for business purposes. In other words, the mass market consists of many customer groups with different needs, wants, and product preferences. A business may have more than one target market. Correctly choosing the best target market is one of the most important decisions made by marketing. In fact, selecting the wrong target market means the business loses an opportunity for success in the right market. This also means the business will probably not meet its sales goals. LO 9.1-2 Market Segmentation Target marketing can be challenging. If the target market turns out to be too small, there may not be enough customers to make a profit. If the wrong target market is chosen, the opportunity to make a profit from a different market is lost. Market segmentation is the process of dividing a large market into smaller groups. Segmenting the market can help in accurately identifying a target market. The people in a target market are a company’s most likely customers. Accurately identifying Market Analyst want to buy. Companies rely on o market analysts to find out what products or services people want and d how much they are willing to pay for them. h Market ana- lysts research market conditions, including public interest, potential competitors, current sales, l and prices. Their information helps company executives make decisions io about which products or services to offer. Typi- cal job titles for these positions include market analyst, market research analyst, market research consultant, and business development specialist. Some examples of tasks that market analysts perform include:: • Gather information about selected products and product ideas • Analyze data about customer preferences and buying habits to identify t potential markets • Monitor related industries and businesses • Forecast trends in sales and marketing Market analysts need to be able to analyze large amounts of data to find trends d and other information so company executives can make good product decisions. They must evaluate not only n the data, but also the reliability of the data sources. A strong background in statistics is necessary, as well l as the ability to use information-retrieval software. A bachelor degree is required for about 70 percent of the jobs in this field. For more information, access the Occupational Outlook Handbook online. k Exploring Marketing Careers