Interrelationship between target marketing and the marketing mix.

        Marketers develop a unique blend of price, product, promotion and distribution (place) designed to meet the needs of a specific group of customers. Price includes characteristics like list price, discounts, allowances, payment period and credit terms, product is concerned with variety, quality, design, features, brand name, packaging, sizes, services, warranties and returns. Promotion looks at sales promotions, advertising, sales force, public relations and direct marketing, distribution or place is the channels, coverage, locations and transport used to position the product correctly (Kotler et al. 2001). Price decisions must be coordinated with product design, distribution and promotion decisions to form a consistent and effective marketing program (Kotler et al. 2001). All these features influence the way that the consumer perceives the product. Many marketers are now saying that email marketing is a significant component of their marketing mix (International Market Research Information). Even though the traditional marketing mix is very effective and influential, marketers must always be open to new ways of positioning a product, as the marketing world and technology is continuously influencing the consumer’s decision process.

        The interrelationship occurs during the third stage of target marketing, market positioning. Once a marketer decides on an appropriate product positions, they design a marketing mix to create these planned positions. The marketing mix must be formed to convey the chosen product position within the selected target market. Target marketing must occur first as to form a base for the marketing mix to be developed. Companies may have more than one target market; there are three different marketing mix strategies to ensure market coverage. The first is undifferentiated marketing, the company has one marketing mix to cover the whole market, this is also referred to as mass marketing. This approach is not used as often today as it is not very cost effective. Holden Ltd would use this type of marketing to promote the company as a whole, the Holden name rather than the different products within the company. Mass marketing is delivered to all target markets, in the case of Holden it would be beneficial, as cars are a necessity of today’s society so relevant to everyone and even to those under the age of 17 as Holden can capture brand loyalty and merchandise sales of the Holden name rather than individual car features. The second marketing mix strategy is differentiated marketing, for each target market chosen an individual marketing mix is developed. Within Holden, the Manaro would have a different marketing mix to the Barina as would the Jackaroo or the Statesman. All these cars were developed to serve a different target market. Also within their car brands, the Holden Ute is marketed as being a workman’s partner in trade vehicle but also as a cool, laid back and stylish businessman’s car. The final strategy is concentrated marketing where the companies one marketing mix is delivered to all their chosen target markets. Many possibilities exist between the extremes of undifferentiated, differentiated and concentrated strategies. The ultimate form of target marketing is customised marketing in which the company adapts its product and marketing mix to the needs of a specific customer or buying organisation. All the company’s marketing mix must support the positioning strategy. Positioning strategies must be monitored and adapted over time to match changes in consumer needs and competitor’s strategies.

        It is extremely important for a marketer to understand the interrelationships between target marketing and the marketing mix. If the marketer does not consider these two simultaneously then their marketing goals may not reach the consumer. The marketer must have a clear understanding of the chosen product positioning for the target market so that they can develop a reliable marketing mix to deliver that position to the consumer. The marketer must also be aware of their target market and the strategies that will work to send a favourable impression to the consumer. The Holden Barina is positioned as a small, economical, cheap, simple option for young single consumers. If Holden were to bring out a V8, leather interior and all the added extra’s version of the Barina it would not be profitable as it is not what their target market is looking for, it would be too expensive to buy and run and unnecessary features to spend the consumers limited extra money on. Holden would need to find another target market or design something different that would suit that target market. Not only does the marketer need to be aware of their consumers but also their competitors.  It is crucial for marketer to differentiate their product, either from price, promotion, product or distribution, as to obtain a competitive advantage over their competitors.

Marketers must make sure all their processes of marketing a product combine together to deliver the original desired outcome to the consumer. The target segment must be relevant to the products position and the products marketing mix must be relevant to the products position. Without this continuous flow through the steps the company will not make the most of their product.  

 

         

   

Reference:

1. Kotler, Adam, Brown and Armstrong (2003). Principles of Marketing, 2nd Edition, Prentice-Hall
2. International Market Research Information,
3. Holden Ltd 2002,
4. Kotler, Adam, Brown and Armstrong (2001), Principles of Marketing, Prentice-Hall
5. International Market Research Information,

North American Publishing Company Dec 2001, Philadelphia

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