Price, product, promotion and place (4Ps): changing target market

The idea

Changing target market means a business deciding to aim its marketing mix at a different group of customers. It may move to a segment with different needs, incomes or lifestyles. For example, a budget clothing retailer might target young professionals by improving product quality, raising price, advertising in business media and opening city-centre stores. The change affects all 4Ps: product features, price level, promotion channels and place. It is done to increase sales, enter a growing segment or escape intense competition. It carries risks: existing customers may feel abandoned, costs may rise and the brand image may confuse buyers. The business must research the new segment, adapt the mix and monitor sales.

What earns the marks

• Defines changing target market as altering the group of customers the marketing mix aims to attract.
• Explains that the change affects product, price, promotion and place, not just one element.
• Gives a reason such as falling demand in the old segment, higher profit potential elsewhere or new competition.
• Uses a concrete example, such as a budget retailer moving to target higher-income professionals.
• Analyses a risk, such as losing existing customers or increasing costs, and a possible benefit, such as higher sales.
• Reaches a judgement about whether the change is likely to succeed, based on evidence about the new segment.

Common mistakes and how to put them right

• Treating changing target market as only changing the product.

  Put it right: Price, promotion and place must also be adjusted to suit the new customers.

• Assuming the new segment will buy immediately.

  Put it right: The business needs market research and time to build awareness.

• Ignoring the effect on existing customers.

  Put it right: The business should consider whether loyal buyers will leave or feel the brand no longer suits them.

Exam tips

• Link each of the 4Ps to the new target market in a sentence, for example how price and promotion would change for younger buyers.
• Use a named business or a clear hypothetical example to show the change rather than writing in general terms.
• When evaluating, weigh the cost and risk of the change against the potential sales and profit from the new segment.