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CH 17] Business 101 17-11

participation in ones’ community though various charitable activities. Kiwanis groups
around the country sponsor Boys and Girls clubs, local educational scholarships, the
American Red Cross, Salvation Army and numerous other community activities.
Organization marketing attempts to influence others to accept the goals of, organization marketing
receive the services of, or contribute in some way to an organization. For example, Marketing efforts designed
to influence others to accept
through advertisements such as the one in Figure 17.4, the United Performing Arts the goals of, receive the
Fund of Milwaukee tries to persuade people to contribute funds to several performing- services of, or contribute in
arts groups. some way to an
organization.
Developing a Marketing Strategy
All organizations, whether profit-oriented or nonprofit, need to develop a
marketing strategy to effectively reach consumers. This two-step process involves:

1. Studying, analyzing, and eventually selecting a firm's target market.
2. Developing a marketing mix to satisfy the chosen target market.

Selecting a Target Market
Consumer needs and wants vary considerably, and no single organization has the
resources to satisfy the desires of all consumers. Therefore, the first decision marketers target market
make when developing a marketing strategy is to select a target market. A target Group of consumers toward
which a firm decides to
market is a group of consumers toward which a firm decides to direct its marketing direct its marketing efforts.
efforts. Consider the following examples:

Nestle targets its Oh Henry! candy bar at teens and young adults 12 to 24 years
old, but its Alpine White brand is targeted at upscale men and women 18 to 34
years old.

Ikea stores, a retailer of ready to assemble wood furniture with modern designs
target the young college graduates aged 25- to 34 year-olds with a median income
of $70,.000.

The Saab target market consists of well-educated, 30- to 40-year-old professionals
and managers with a median household income of $89,000.

Approaches to Selecting a Target Market

Market segmentation approach Total make approach 17

Chicken Automobiles

Tyson Foods Ford Motor Co.

Intermediate
Cars Sports Cars

Compact Cars Luxury Cars

Rolls-
Royce

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