Answer to Question #181021 in Management for Karabo Maluleke

Question

Fantastic Pizzas is a new restaurant franchise that Mr Reed is planning on opening in Johannesburg. Fantastic Pizza aims to compete in the market by offering good quality pizza at affordable prices as well as provide a memorable experience. The first store will be located in Auckland Park, which is an area buzzing with students and young professionals. The atmosphere and design of the restaurant will be young, vibrant, and trendy focusing on attracting the younger generation. Mr Reed needs to determine who exactly his target market will be, as well as the exact location of the first restaurant, the menu and the type of marketing communication that will suit his target market.

Based on the scenario, which segment will you advise Mr Reed to consider as the main target market for the franchise? ​​​​​​​  (3 marks)

Answer 1

A target market is the segment of individuals and organizations to whom you decide to sell. Targeted marketing, also known as differentiated marketing, is the practice of differentiating certain aspects of marketing (offering, promotion, and price) for different classes of consumers. It is a relatively recent occurrence. Mass marketing, also known as undifferentiated marketing, was the first to emerge. It arose alongside mass manufacturing and entails selling the same commodity to everyone. Mr Reed should consider mass marketing to be a shotgun approach: you blast out as many marketing messages as possible on any available channel as often as you can afford.