A target market is a set of buyers who share similar needs or characters (Bragg, 2005). Unlike mass marketing, where a business firm offers a single product to the entire market, target market entails offering a single product or an array of products to one or more market segments, identified through market segmentation (Bragg, 2005). In order for the identified cake-baking business to improve, it will require to select a specific target market. A good target market is one, which is attractive and meets the requirements of a business (Bragg, 2005). In evaluating the attractiveness of the desired target market, the owners of the cake-baking business should look at the size, growth rate, brand loyalty, and sales potential for the segment. The size of the desired target market should be big enough to allow sale of many products in order to increase sales revenue. However, the size of the target market should not be too big, because big market segments do not always result into high profits due to presence of numerous competitors (Bragg, 2005).
First-Class Online Research Paper Writing Service
- Your research paper is written by a PhD professor
- Your requirements and targets are always met
- You are able to control the progress of your writing assignment
- You get a chance to become an excellent student!
In fact, the cake-baking business should aim at developing a target market made of smaller segments. For instance, the business can segment the target market into three categories. These are students, children, and adult categories. Every segment should be well suited for a specific product. For instance, the adults segment can form a market segent for wedding cakes and seasonal offerings such as thanksgiving and Christmas, children category can form a segment market for birthday cakes and small cakes for various children’s occasion, while the students can form a segment market for birthday and out-of-season cakes and recipes.
A good target market should have the capability of fitting into a business’s objectives and resources. The higher the business’s capability, the more attractive is becomes. Since the cake-baking business is a newly established business, it is likely that it has limited resources in terms of capital, physical assets, and space. Therefore, the best target market strategy that this business should adapt is single-market strategy. Single-segment strategy entails marketing to an entire target market with only one marketing mix (Bragg, 2005). This can be effective in achieving cost-effectiveness.
After successfully identifying a target market, the bakery business should develop a positioning strategy for its products. A positioning strategy is marketing strategy of developing an image in the minds of the consumers in the target market (Product Positioning, 2005). A positioning strategy assists a marketing firm to create a way in which the customers perceive its products in comparison with products of other competitors. The first stage of developing a positioning strategy is to sselect a positioning concept based on what is significant to consumers. For instance, the cake-baking business can evaluate the significance of speed, quality, and delivery process to the customers. Based on the most significant values to many customers, the business can then develop a position statement. For instance, if the customers value quality and speed of delivery, then a good position statement for the bakery business would read as follows, ‘A good and delicious cake delivered to you within 30 minutes.’
The next step in development of a positioning strategy is to develop attributes, which broadly convey the business’s position to the target market consumers. A product’s position can be conveyed using product elements such as appearance, brand name, or slogans (Bragg, 2005). These product elements should be adjusted to develop a positioning strategy, which suits the needs of the customers. The last stage of developing a positioning strategy is to create differential advantage. The best approach for the cake-baking business is to use benefits positioning strategy to differentiate its products. It can emphasize on benefits that customers can attain from using its products. Such benefits may include high quality and nutrients value. Therefore a position statement for the bakery business may read, ‘A good, delicious, and healthy cake delivered to you within 30 minutes.’
Most popular orders