Market research?

Question

explain the characteristics of target market in international business?

Answer 1

Target market are the group of people that you focus on when developing a product and when marketing a product. They differ from "consumption" in that consumption are all of your customers while your "target" are your "best customers". You can also have an "adjacent target", a group of customers who are worth marketing to and communicating with but are not be your main target.



Let's think of an example. Sometimes it's easier to picture with a real product in mind. How about hand tools (screwdrivers, pliers etc.) sold by Black & Decker? Now I have not interviewed them, but here's one way to think of marketing hand tools.

* Target market: likely tradesmen - skilled craftsmen (carpenters, plumbers, etc.) who will give B&D hand tools credibility when the rest of the population sees them using them. (Nike does this with athletes.) Key questions as a company: What do they need my product to do? How do I market to them?

* Adjacent target: likely Do-It-Yourselfers. Good adjacent target because: 1) there are more of them, 2) they may like the credibiltiy the tradesmen give to B&D hand tools and 3) they shop in some of the same stores.

* Consumption: Everyone else who owns hand tools. This might include apartment dwellers who only own a couple of basic tools for hanging curtains, installing a bookshelf or fixing a chair. It could also include Buyers for hospital/school mainenance departments who look for low price first and quality second. You get the idea: there are other groups of buyers, but you are not design or communicating directly to them.

Domestic or international the notion of a target customer is the same. The target market has little to do with geography and more to do with how you think about creating and marketing your products. The international aspect may dictate that you need to change your target based on the culture/economy of the new country/area. It may also impact how you communicate about your product and how it is sold.

Try thinking about other products. Who would you suggest the target, adjunct and consumption are for:  Coca-cola? Pepsi? KFC? Tide? Ford Focus? Levis? Colgate?