Marketing Concept of Targeting a Segment
An article published on The Age’s website ‘ME Bank targets younger customers in Co-op deal’ addresses the marketing concept of targeting highlighted in the ever-changing technological area of the macro-environment.
In this article the marketing concept of targeting a segment is present. This major marketing concept involves dividing the marketing mix into segments. These distinct sub groups (target segments) comprise of buyers that react differently to various marketing techniques (Sharp, 2013, p.221). This particular marketing concept acknowledges that the needs and desires of consumers vary. Thus, by targeting sub-groups within the marketplace, businesses can modify their marketing strategy in attempt for future growth, success and customer retention (Marketing91, 2014).
In this example, ME Bank has strategically partnered with Australia’s largest provider of educational, professional and learning resources, Co-op (Co-op, 2014). This arrangement was made in an attempt to target and recruit a new clientele; University students. ME Bank has established a means of enticing its target segment by providing the option of a free Co-op membership in return for joining and opening a transaction account with their bank. This arrangement allows students to ‘members only’ discounts on all products provided by Co-op, most notably, University textbooks (Co-op, 2014). This approach allows ME Bank and Co-op to target students who may be financially restricted. Furthermore it is stated in the article that ‘About 100,000 people join Co-op each year’, this figure shows that ME Banks expenditures of resources used to target University students appears to be a highly profitable project (Sharp, 2013, p.224). Accordingly, ME Bank and Co-op should increase their clientele through these new consumers, who inevitably may provide the companies with vast investments in the future.
Another key issue highlighted in the article is the changes in the technological environment.
In this article the marketing concept of targeting a segment is present. This major marketing concept involves dividing the marketing mix into segments. These distinct sub groups (target segments) comprise of buyers that react differently to various marketing techniques (Sharp, 2013, p.221). This particular marketing concept acknowledges that the needs and desires of consumers vary. Thus, by targeting sub-groups within the marketplace, businesses can modify their marketing strategy in attempt for future growth, success and customer retention (Marketing91, 2014).
In this example, ME Bank has strategically partnered with Australia’s largest provider of educational, professional and learning resources, Co-op (Co-op, 2014). This arrangement was made in an attempt to target and recruit a new clientele; University students. ME Bank has established a means of enticing its target segment by providing the option of a free Co-op membership in return for joining and opening a transaction account with their bank. This arrangement allows students to ‘members only’ discounts on all products provided by Co-op, most notably, University textbooks (Co-op, 2014). This approach allows ME Bank and Co-op to target students who may be financially restricted. Furthermore it is stated in the article that ‘About 100,000 people join Co-op each year’, this figure shows that ME Banks expenditures of resources used to target University students appears to be a highly profitable project (Sharp, 2013, p.224). Accordingly, ME Bank and Co-op should increase their clientele through these new consumers, who inevitably may provide the companies with vast investments in the future.
Another key issue highlighted in the article is the changes in the technological environment.
References: Co-op. 2014. About the Co-Op. http://www.coop.com.au/bookshop/about/about-us.html Viewed 25 March 2014 Marketing91. 2014. Six Advantages of Segmentation. http://www.marketing91.com/6-advantages-segmentation/ Viewed 26 March 2014 Sharp, B 2013, Marketing: Theory, Evidence, Practice, 1st Edition, Oxford University Press, South Melbourne Yeates C. 2014, ‘ME Bank targets younger customers in Co-op deal’, The Age, viewed 20 March 2014. http://www.theage.com.au/business/banking-and-fincance/me-bank-targets-younger-customers-in-coop-deal-20140209-32a0l.html