Unit - III

Topic: Targeting
Instructor Ankur Bhatnagar
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Market Targeting
Market segmentation reveals the firms market segment opportunities. The firm now has to evaluate the various segments and decide how many and which ones to target.

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We now look at how companies evaluate and select target segments. The target marketing process involves the following steps

Market targeting procedure

STEP 1 Evaluating Market Segments

STEP 2

Selecting Target Market

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Step 1 :Evaluating Market Segments

In evaluating different market segments a firm must look at following steps:

Segment size and growth

Segment structural attractiveness

Company objectives & resources

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Step 2: Selecting Target Market

After evaluating different segments, the company must now decide which and how many segments to serve? This is the problem of target
market selection. A target market consist of a set of buyers who shares common needs or characteristics that the company decides to serve.

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T A R G E T I N G

Limited coverage market targeting

S T R A T E G I E S

Full coverage market targeting

Additional considerations
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I. Limited coverage market targeting

D C

D C

When only one or few segments are selected as market targets it is called limited coverage market Ankur Bhatnagar www.managementpedia.tk segmentation.

Limited coverage market targeting can take any to the following terms:
1. 2. 3. 4. Single-segment concentration Selective specialization Product specialization Market specialization

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1. Single-segment concentration
Market 1 Market 2 Market 3

Product 1

Product 2

Product 3

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2. Selective specialization
Market 1 Market 2 Market 3

Product 1

Product 2

Product 3

Each segment promises to be a moneymaker. Ankur Bhatnagar This strategy diversify firms risk. www.managementpedia.tk

3. Product specialization
Market 1 Market 2 Market 3 Product 1

Product 2

Product 3

A microscope manufacturer that sells microscope to Ankur Bhatnagar university laboratories, govt. laboratories and commercial laboratories.
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4. Market specialization
Market 1 Market 2 Market 3

Product 1

Product 2

Product 3

Ankur Bhatnagar Firm that sells an assortment of products only to university laboratories. www.managementpedia.tk

II. Full coverage market targeting

Market 1 Market 2 Market 3

Product 1

Product 2

Product 3

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III. Additional Consideration

Two other considerations in evaluating and selecting segments are :
i. Ethical choice of market targets

ii. Segment by segment invasion plans

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References
Philip Kotlar, Keller, Kohsy and Jha, Principles of Marketing Management, Pearson Publication Dr. K. Karunakaran, Marketing Management, Himalaya Publication Journal of Marketing Management

Magazine- 4Ps of Business & Economy

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