Market Targeting

Market Targeting
• Market Targeting: Process of evaluating
each market segment’s attractiveness and
selecting one or more of the market
segments to enter
 Evaluating the market segments
• . Factors:
• * segment size and growth
• * segment structural attractiveness
• * company objectives
• * resources
 Evaluating the market segments
• Consumers
– Size
– Growth potential
• Competitive situation
– Nature of competition
– Substitutes
– Power of suppliers and buyers
• Company
– objectives
– resources
Selecting the market segment
Selecting the marketing segment
• Single segment concentration - firm concentrates
on one market only for its one product.the firm get
strong market knowledge of the segment need and
achieve strong market position.and strong in
production distribution and promotion.
• It involve higher risk because consumer can easily
switch over to another product.for that company
prefer to operate more than one segment.
• Selective specialization - firm selects a number of
attractive and appropriate segments and develops
products that appeal to each segment
• There may be little or no synergy among product but
all are money maker.
• The risk minimize.
• If one segment is unattractive firm can get money
from other segments.
• Product specialization - firm focus is on a
product it can sell to several segments.
• Through Product specialization strategy the
firm build the strong reputation in the
specific product area.
• Market specialization - firm satisfies multi-faceted
needs of one particular group.the firm gain the
strong reputation for specializing in serving this
customer group and become a channel of customer
for all new product that the customer group could
feasibly us
• Full market coverage - Firm serves all customer
groups with products they might need.
• * undifferentiated marketing - entire market receives
the same program
• * Differentiated marketing - different programs for
different segments
• Single-Segment Concentration - niche
• Product Specialization - 1 product, different markets
• Market Specialization - 1 market, different products
• Selective Specialization - different segments each
matching the firm’s
competitive advantages
• Full Coverage - all products, all markets
 Undifferentiated
Marketing
– Focus on what is common among consumers
– Mass marketing
– An undifferentiated marketing approach aims at
a large, broad consumer market through one
basic marketing plan
– It focuses on buyer’s need rather than
differences am ong buyers.
– It relies on mass distribution and mass
advertising. Coca-cola early marketing of only
one drink in one bottle and one taste.
•   Concentra te d Ma rk etin g
A concentrated marketing approach aims at a narrow,
specific consumer group through one specialized marketing
plan catering to the needs of that segment.

• Concentrated marketing is popular for small firms for these

reasons:
• Mass production, mass distribution, and mass advertising
are not necessary.
• It can succeed with limited resources and abilities by
concentrating efforts.
• . If concentrated marketing is used, it is essential for a
firm to do a better job than competitors in several areas.
• 1. The company needs to tailor its marketing program for
its segment better than competitors.
• Diffe rentiated Mark eting
(M ultiple S egmentatio n)
• firms operates in several marketing segments and
design different programs for each segment.
• . It appeals to two or more distinct market
segments, with a different marketing plan for each.
Company resources and abilities must be able to
produce and market two or more different sizes,
brands, or products. Costs vary, depending on
modifications needed.

• Wholesalers and retailers usually find

differentiated marketing to be desirable, because it
enables them to reach different consumers, Total
profits should rise as the number of segments
serviced increases.
A firm must balance revenues obtained from
selling to multiple segments against the costs.
• in differentiated marketing the following cost is
likely to be higher :
• Product modification cost:
cost
• modifying g a product to meet different market
segment requirement usually involves some R/D
, engineering and /or special tooling cost.
• Manufacturing cost:
• It is usually more expensive to produce ten units
or ten different products then 100 units of one
product.
• Administrative cost:
• The company has to develop separate marketing
plans for each market segment.this requires extra
marketing research , forecasting etc.
• Inventory cost;
• It is more costly to manage inventories containing
many products than inventories containing few
products.
• Promotion cost;
• The company has to reach different market
segments with different promotion programs.