Target Market Strategy

According to Armstrong and Kotler, “to succeed in today’s competitive marketplace, companies need to be customer centered.” (Marketing: An Introduction, Armstrong and Kotler, p. 50) Therefore, it is important for a company to evaluate each potential target market and decide on which one will be the most receptive to the product. The first step to this is market segmentation. This involves “dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.” (Marketing: An Introduction, Armstrong and Kotler, p. 50) Then after the market is divided into different groups, these groups become market segments. “A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.” (Marketing: An Introduction, Armstrong and Kotler, p. 50) For Elysian Vodka, since we sell a super premium, luxury brand, our target market would be older people (35 years old and up), who have sophisticated tastes and a social lifestyle, as well as a moderate to higher income level.