Introduction
A marketing strategy refers to an organization’s approaches to reaching consumers and increasing sales. Organizations use different marketing strategies depending on their objectives and target market (Masterson et al., 2021). Target marketing is a marketing strategy in which an organization segments its clients and focuses on a specific group whose needs match its products (Masterson et al., 2021). The success of the target marketing strategy facilitated increased profits for some companies, while in other companies, the strategy failed, which resulted in losses and a negative reputation.
Different companies have used this strategy, and it has been thriving since it promoted the growth of these companies. These companies include Nike, Netflix, Lego, Dior, Coachella, and Vans. Nike implemented a story-based approach to market the sneaker shoes (Hartline et al., 2021). The Company collaborates with prominent athletes like Tiger Woods and Serena Williams and tells their stories, attracting more athletes and the youth who identify with the stories (Hartline et al., 2021). Consequently, an increase in the market results in more sales, contributing to the Company’s growth.
Netflix uses undifferentiated marketing to promote its wide genre of movies and television shows. The Company has a large audience, each with various tastes and preferences; as such, it has included all types of dramas to accommodate the needs of its clients since it is the most viewed genre (Hartline et al., 2021). Lego Company has adopted a client-based methodology to market children’s toys. The Company has installed Lego-led structures in the streets, which help to attract more children to their stores, thus promoting more sales and growth.
Dior implemented the niche marketing approach to advertise clothes and shoes to its clients. The Company’s target market is the rich population; thus, it organizes galas and runway exhibitions to showcase its products to consumers and prospecting buyers. This has enabled the Company to gain more consumers hence increasing sales. Coachella is a festival company that uses social media to market itself to its audience, mainly the youth and especially the hipsters. The firm has created hashtags that allow its audience to share their experiences (Hartline et al., 2021). As such, more youth are attracted to the festival, increasing profits for the Company. The Vans Company adopted the focus marketing approach to market the Lizzie Vans skating shoes. This approach specifically targeted skaters and surfers; the Company organized a competition for skating and surfing, and the winners were given new shoes and other presents (Hartline et al., 2021). The Company got more customers, resulting in increased sales and consequent growth.
Conversely, target marketing strategy has not always been successful in all companies. These companies include Facebook, Heineken, Burger King, EA gaming, Pepsi, and KFC. Facebook implemented the niche marketing approach to market its new virtual reality technology. The strategy failed because the Company mainly targeted the youth, who preferred 2D gaming over VR gaming (Hartline et al., 2021).In addition, the approach failed because the Company targeted the wrong market. Burger King used mass marketing to market the meatless burger (Hartline et al., 2021). The strategy failed because the Company used it on the wrong target market. Many of the consumers were meat eaters; the Company had few vegetarian clients.
KFC Company implemented the undifferentiated marketing approach by collaborating with Oprah Winfrey to give free food to her fans. In 2009 the food coupon approach failed due to an overwhelming response by the public since everybody could download the coupon. KFC had to terminate the program to prevent further losses since it gave people $42 million worth of free food (Hartline et al., 2021). EA gaming company adopted the differentiated marketing approach to market its new game, Godfather 2 (Hartline et al., 2021). The approach failed because EA shipped the brass knuckles to states that had banned them. The Company had to recall the shipments to prevent legal actions, thus negating the game’s publicity.
Pepsi Company implemented a differentiated market approach to market its Pepsi Blue drink. The approach aimed at attracting more youth to like the new drink, but it failed since only a few were interested (Hartline et al., 2021). Heineken used the differentiated market approach to publicize Heineken beer. The Company has many outlets in different countries, and its target market is mainly the youth. However, different countries have varying legal drinking ages; thus, it hinders the strategy’s effectiveness.
Mental Account
My mental account is a control mechanism for how I spend and categorize money depending on the expenses incurred. In most cases, transferring money from one account to the other is difficult due to the belief that the funds are fungible. Mental accounting is essential since it helps prevent money misuse (Lehr, 2022). In addition, it emphasizes rectifying financial mistakes hence promoting accountability. For instance, one would instead leave their money in a savings account and transfer it to an investment account.
Conclusion
Target marketing strategy is among the most successful marketing approaches. It has facilitated the growth of many companies over the years. These companies include Vans, Dior, Coachella, Netflix, and Lego. Nonetheless, other companies implemented the target marketing strategy, but the strategy failed to achieve the set objectives. Some of these companies include Burger King, Pepsi, and KFC. Mental accounting influences how people allocate and segment their money depending on their expenditures.
References
Hartline M. D B. & Ferr. Hochstein ell O. C. (2021). Marketing strategy. South-Western. Web.
Lehr B. (2022). Behavioral economics: Evidence theory and welfare. Routledge Taylor & Francis Group.
Masterson R., Phillips N. & Pickton D. (2021). Marketing: An introduction. SAGE