Many people may think that the marketing term “targeting” is something they often see, but they don’t really understand what it means.
Targeting is
“choosing the market in which to compete” in business
. It is carried out within the flow of marketing strategy, and
the framework “6R” is considered effective
.
This time, we will provide an easy-to-understand explanation of the meaning of targeting, the 6R framework for strategic targeting, and examples of successful targeting strategies.
Basics of Marketing What is “Targeting”?
First, let’s take a look at the meaning of “targeting,” which is the basis of
marketing
, and its position in marketing strategy.
・Targeting means choosing the market to compete in!
Targeting means choosing the market in which to compete. The market (=customer) has various layers. If you target everything in the market, you won’t be able to clarify your business strategy.
Through targeting
, we narrow down the markets we want to compete in and develop strategies to provide products and services that meet specific needs
.
・Flow of marketing strategy ~STP analysis
Marketing strategies
are built through STP analysis, which includes segmentation, targeting, and positioning.
The positioning of STP analysis and targeting in STP analysis is as follows.
1.
segmentation
Segmentation is
the process of
understanding the structure of a market by dividing it into smaller segments
. There are various evaluation axes for segmenting the market, including customer age, hobbies and preferences, areas of residence and work, and past behavioral data. Segmentation must be done carefully, as the subsequent marketing strategy will greatly change depending on how it is done.
2.
targeting
After segmentation, we perform targeting, the process
of deciding which of the segmented markets to compete against
. When targeting, it is important to consider how your company can leverage its strengths and gain an advantage over your competitors.
3.
positioning
Targeting also means
choosing the “customer needs” to compete against
.
Positioning is determining what value you will provide to meet the needs of your selected customers.
When positioning, the key is
to consider how you can differentiate your products and services
from competitors that offer similar products and services.
Strategic targeting framework “6R”
“6R” is an effective framework for targeting in the flow of STP analysis.
By keeping the 6Rs in mind, you can set targets more strategically.
・1. Realistic Scale…Is the market size appropriate?
Market size must be considered when targeting. The size of the market you choose needs to be large enough to support your business.
・2． Rate of Growth…Can we expect growth?
The market you select through targeting is not just about being large.
Even if the market was large enough at the time of the analysis, it may decline later.
Therefore, when targeting, it is important to
determine whether the selected market is expected to grow
.
Even if a market is small at the time of analysis, it can grow rapidly and result in large sales.
・3. Rank/Ripple Effect…Are customer priorities and ripple effects high?
It is also important
whether the product or service you offer is of high priority and interest to your customers
. This is because if something has a high priority or interest, it will be spread through SNS, and you can expect it to have a ripple effect on other customers.
・4. Reach…Can you reach your customers?
The customers you select through targeting must be
ones that you can actually reach when doing business
, for example by having a directory available.
For example, if you are planning to open a dive shop inland rather than by the sea, you may need to reconsider.
・5. Rival…Isn’t the competition fierce?
Generally, a market will be less attractive if a competitor already has a large market position.
On the other hand, if you can
successfully differentiate yourself in a market where your competition is less intense
, you may be able to gain a significant position.
・6． Response…Is the response measurable?
When conducting targeting, you must also keep in mind whether the
response and effectiveness of approaches such as advertising can be measured
.
■Examples of successful targeting strategies
・Success case 1 Body lotion “Sea Breeze”
Sea Breeze, a body care product developed by Shiseido, was originally targeted at “men in their 20s and 30s who go to the beach,” and was intended to have the effect of cooling skin that was hot from the seaside sun.
However, as fewer and fewer people went to the beach and the brand became older and less appealing, sales were sluggish.
Therefore, Shiseido made a major change in its targeting strategy, choosing “high school girls in the city” as a new target, and focused on the deodorant’s effectiveness in reducing the odor of sweat.
As a result, Seabreeze’s sales increased eight times compared to the slump period.
・Success case 2: Electric toothbrush “Pocket Dolts”
In the past, electric toothbrushes were mainly aimed at elderly men.
The general impression of the product was that it was “big and noisy.”
Panasonic has changed its target to “women in their 20s and 30s who brush their teeth at work.”
・Compact and light enough to fit in your makeup pouch
・Cute design that looks like lipstick
・Convenience of not having to charge every day
The release of Pocket Dolts, an electric toothbrush equipped with
■Summary
- Targeting means choosing the market in which to compete.
- Perform targeting after segmentation using STP analysis
- Framework “6R” is effective for strategically setting targets
- Examples of successful targeting strategies include Sea Breeze and Pocket Dolts.