Prior to its decision to expand its business, Smith's did not really have any focused marketing plan or strategy to speak of. Now, however, since they have decided to franchise and have a contractual obligation to their franchisees to assist with marketing, Smith's has determined that it needs to develop a focused marketing strategy.

In order to do this you have informed them they should do some market research to determine their marketing strategy. In order to do this they need to determine who is their target market.

What Is A Target Market?

A target market is a group of individuals, organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group.

In selecting a target market, marketing managers examine potential markets for their possible effects on the firm's sales, costs, and profits. They attempt to determine whether the organization has the resources to meet the needs of the target market and whether satisfying these needs is consistent with the firm's overall objectives.

They also analyze the strengths and weaknesses of competitors already marketing to people in this target market. A target market can range in size from millions of people to only a few, depending on the product and the marketer's objectives.

Approaches to selecting a target market include:

• Undifferentiated Approach
• Market Segmentation Approach

Initial Discussion Post

Your Assignment

You have been asked to address the following issues:

1. Describe Smith's target market.
2. Should Smith's use a undifferentiated approach or a market segment approach to selecting a target market? Explain your reasoning.

Answer rating: 100% (QA)

A target market refers to a specific group of individuals or organizations that a company tailors it... View the full answer