: Strategic Brand Management

Target Marketing

In this chapter, we will address the following questions:

  • 1. In what ways can a company divide a consumer or business market into segments? (Page 117)
  • 2. How should a company choose the most attractive target markets? (Page 124)
  • 3. What are the different levels of market segmentation? (Page 125)

Marketing Management at LinkedIn

LinkedIn began operations in 2003, targeting a different audience than most other social networks, with a vision “...to create economic opportunity for every professional in the world.” Also separating LinkedIn from other social networks is the fact that it has diverse revenue streams, driven by three customer segments: job seekers who buy premium subscriptions for access to special services; advertisers who rely on its marketing solutions unit; and corporate recruiters who buy special search tools from its talent solutions unit. Today, LinkedIn has more than 300 million users worldwide—including 5 million in China, one of its newer markets—and sees much growth from its mobile users, who in 2013 accounted for more than 30 percent of unique visits to the site. Now Linkedlns well-targeted and positioned brand faces competition from other online giants, such as Facebook, and from established professional network services overseas, such as Viadeo SA in Europe and elsewhere.1

To compete more effectively, many companies are now embracing target marketing. Effective target marketing requires that marketers (1) identify and profile distinct groups of buyers who differ in their needs and wants (market segmentation), (2) select one or more market segments to enter (market targeting), and (3) establish, communicate, and deliver the right benefit(s) to each target segment (market positioning). This chapter focuses on the first two steps; Chapter 7 discusses the third step.

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