http://www.business.govt.nz/tools-and-templates/educational-resources/target-marketing ACTIVITY 1 Understanding the concept Read through the Target Marketing topic hand out with class before asking students to match the products and services listed in Activity 1 of the student worksheet with appropriate market segments. Students can research the products online, but must describe in writing the target customers for each offering, including any behavioural traits. Students can present their answers individually or in groups for class discussion. There are no right or wrong answers, but if students struggle to identify a target market brain-storm with the class the kind of characteristics a realistic target market would have for the product. ACTIVITY 2 Putting theory into practice Have students read the hypothetical product and target market description in Activity 2 of the Target Market student worksheet and write down an appropriate marketing plan for the product. Answers should address the 4 Ps – Product, Price, Place and Promotion (for more detail see Marketing topic hand out). Answers can be individually marked or presented to class. Resources - www.business.govt.nz/tools-and-templates/educational-resources/target-marketing/Student%20handout.doc - www.business.govt.nz/tools-and-templates/educational-resources/target-marketing/Student%20worksheet.doc - www.business.govt.nz/managing/marketing

1. Target Marketing

2. What is target marketing?
The practice of identifying a
product’s ideal customer and
targeting them to maximise
sales
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3. Market segments can be defined by:
- Geography
- Income
- Age
- Sex
- Personal interests
…anything universal among
the group of customers
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4. Customer research
Entrepreneurs need to research
their target markets before
launching a business
Many don’t, however, and
struggle to realise the potential
of their product or service
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5. Researching existing customers
Talking to repeat customers
can help businesses identify
what traits and habits unite
them as a market segment…
They can then use that
knowledge to attract more
people like them to their
product
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6. Customer databases
Databases not only help
businesses recognise
customer segment traits, they
can also record buying
patterns
These help businesses
identify more of their
customers’ needs
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7. Finding more ideal customers
Businesses often export or
go online with e-commerce
websites to gain access to
more of the customers
their products target
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8. Competitor research
Who are your rivals targeting?
Can you do it better than
them?
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9. Re-visit unviable markets
Markets are always
evolving
What wasn’t a viable idea
yesterday might be viable
today

10. Adapt to untapped markets
Can you apply your
product, service, assets or
knowledge in a different
way to meet the needs of
an entirely new market
segment?
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11. Creating a market
Sometimes, an innovative
new product isn’t
designed with a customer
segment in mind
These products can only
succeed by creating
demand
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12. Find Out More
Facebook.com/business.govt.nz
Twitter.com/business_govtNZ
Linkedin.com/company/business-govt-nz
Slideshare.net/MED-Business
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