Rockelle Gardner American Public University System MKTG400, Course Final, December 2017. Business Problem regarding Selection of Target Customer. In order to deliver the customer base with the product or service demanded and preferred by them an organization needs to select the target customer in a strategic manner MaRS 2009. Incorrect selection of target customers often leads to failure of business campaigns online and offline. It has been estimated that in the UK only 47 campaigns succeed to fulfill the needs and demands of the target customer base while others fail miserably. The prime reason behind this failure being a selection of ineffective target customers Gee 2016. Even Malaysia Airlines set the prime example of failure in its campaign named my ultimate bucket list when the company succumbed to the bucket list contests set by other airlines Burke 2015. Prior to the start of a new business or launch of a new product in the existing market an organization needs to conduct in-depth marketing research for targeting the appropriate group of customers. It is a matter of fact that ventures gain popularity and long term success due to effective marketing research while identifying the most productive target market Zikmund Babin Carr and Griffin 2013. This research also includes identification of the problems of the customers while pointing out realistic competitors. Effective marketing research helps the businessmen in keeping up with the ongoing market trends while maintaining a competitive edge through proper framing of the business opportunity Zikmund et al 2013.
This is because an in-depth understanding of the market from the very start of a new venture often enables the management team of the concerned company in creating a productive business strategy for the establishment and growth of the brand while gaining a competitive advantage. In the context of assessing the use of marketing research for identifying new business opportunities, it needs to be highlighted that effective marketing research describes the prime objectives of the venture. In the primary stage marketing research often provides information regarding the effectiveness of sales while ascertaining the qualities of services provided to the customers by the competitors Zikmund et al 2013. Effective marketing research also provides an idea about the communication channels used by the competitors to connect to the target customers. In a way, proper marketing research helps an organization in assessing the competition while identifying new business opportunities among the prospective target market. In order to ensure the effectiveness of marketing research it must be stated that companies can identify business opportunities as well as target customers for the same by way of investigating if the suggested marketing strategies were used previously or not Zikmund et al 2013. In case it is identified that a similar marketing strategy has been used by the competitors the success or failure of the plan is identified followed by the development of alternative policies that might prove to be fruitful for the selection of target customers for the new business project. In order to target the most appropriate customers who can be developed into loyal buyers of a particular product the companies often take desperate steps.
These include both ethical and unethical measures that help the companies in motivating the customers towards purchasing the company’s products Turker 2009. For selecting the most productive target market companies to use different kinds of advertisement and marketing strategies. So that the attention of a particular section of the consumers can be drawn. Mostly the marketing personnel of a company is aware of the fact that an organization cannot satisfy the needs and demands of the entire society. Hence they focus on using the most costly and effective measures for selecting the target market while adhering to the values of the entire society Turker 2009. In order to ensure that they are actually adhering to the social norms while selecting target customers, marketers decide the way of selection that matches the ethical beliefs of the firm followed by the determination of the ethical branch that can be implemented most effectively. In the process of selecting the target customers companies at times fail to abide by the ethical means such as manipulation of the product information and deception with the mindset of the customers. It is the general human psychology that business organizations often aim at fulfilling the interests of their customers. At some point of time, the companies tend to influence a set of customers they try to target for their venture by persuading asking informing and advising Turker 2009. However, during the process, the companies often provide incorrectly or manipulated information to the customers so as to persuade them to buy a certain product or service by applying unethical force. Even in some cases, the marketers target the disadvantaged segments of the society for selling products which are harmful for human health.
The psychology associated with the selection of target customers for marketing a product says that a company offers its deliverables to those people only who show strong affinity towards a particular brand. As a result it becomes the strategy of a company to customize its sales message as per the mindset of the target customers Fuchs Prandelli Schreier 2010. Hence it can be stated that marketing strategies aimed at particular groups of target customers are constructed on the basis of consumer inferences of similarities between advertisements picturization language and lifestyle and the customer's desire of owning the represented lifestyle Fuchs Prandelli Schreier 2010. The characteristics of the amateur users of a product or service shown in the advertisement are used for persuading the psychology of the customers. Marketers use a number of strategies for selecting the target market which is appropriate for the advertised product or service. The most common marketing method used by the marketers is undifferentiated marketing. This is often used as the initial step of targeting a group of customers by communicating the information regarding the concerned product or service to as many people as possible with the help of a single message only Fuchs Prandelli Schreier 2010. The groups of customers that show interest to the advertised product or service through the undifferentiated message are targeted in later advertisements with the help of more customized and streamlined messages. Undifferentiated marketing is considered to be the initial step of assessing the psychology of the customer base so that later advertisements can be designed in such that those can prove to be fruitful for the targeted customers Fuchs Prandelli Schreier 2010. The success of an advertisement in the form of undifferentiated marketing paves the way towards the development of a differentiated marketing strategy. At this stage, the marketers use their knowledge about the target customers to design advertisements in such a manner that can appeal to the psychology of the customers to motivate them towards purchasing of the product or service offered. The effectiveness of customer selection involves assessment of the choices and preferences of a group of people based on their location lifestyle, age, background and the like. Proper assessment of these factors often proves to be fruitful in the process of customer selection since these play the key roles in successful operations and growth of the company. It is for this reason that while choosing target customers for a product company often consider the needs of the customers, the employees, the company as a whole and the adherence between the three Smith 2017.
Companies tend to decide the target customers on the basis of market potential, market competition, anticipated economic risk anticipated non-economic risk similarity with substitutable product proximity to competitors product and government policies Meyer Estrin Bhaumik Peng 2009. Other factors that influence the selection of target customers include rivalry power probability of profit generation licensing of business and demand from customer base Meyer Estrin Bhaumik Peng 2009. The following figures show the degree of influence of the mentioned factors on the selection of targeted customer Figure 1. Degree of Influence of Miscellaneous Features on Target Customer Selection Source Meyer Estrin Bhaumik Peng 2009. Figure 2 Degree of Influence of Specific Market and Customer Features on Target Customer Selection Source Meyer Estrin Bhaumik Peng 2009. The features of the customer base and the market discussed so far in text and through the figures are considered to be important for effective target customer base selection. This is because these factors pave the way towards efficient operation and equipment management by the organization followed by the attainment of customer convenience Smith 2017. As a result, the business flourishes with the target customers and encourages continuous development of the customer base for further development of the business References Burke S 2015. Read with caution 15 of the absolute WORST marketing campaigns from 2014. Retrieved from http www getspokal com read with caution 15 of the absolute worst marketing campaigns from 2014 Fuchs C Prandelli E Schreier M 2010. The psychological effects of empowerment strategies on consumers product demand Journal of Marketing 74 1 65 79 Gee R 2016 Half of online campaigns fail to reach target audience Retrieved from https www marketing week com 2016 12 15 online campaign targeting MaRS 2009. Identifying market problems building products to meet customers' needs. Retrieved from https www marsdd com mars library identifying market problems Meyer K E Estrin S Bhaumik S K Peng M W 2009. Institutions resources and entry strategies in emerging economies Strategic Management Journal 30 1 61 80 Smith C 2017. Why Is the Location of a Business Important Retrieved from http small business chron com location business important 43239 html Turker D 2009. How corporate social responsibility influences organizational commitment Journal of Business Ethics 89 2 189 204 Zikmund W G Babin B J Carr J C and Griffin M 2013 Business research methods Boston Cengage Learning.