Basilio, Alyssa Bernadette A.

MKT1209-SEC01 EXT A1

Marketing is defined as a method of analyzing and fulfilling consumer needs to achieve an

organization's goals of profitability, survival, or growth. When a company creates a new

marketing strategy for a specific segment, several stages must be completed to ensure that the

campaign will be successful. Businesses will first have to assess their current internal and

external environments. For companies to identify an attractive market, they must evaluate each

market’s attractiveness to the customers and then divide it into smaller segments and finally

choose one or more units to enter. They must also assess and analyze the size and growth

characteristics of each segment, as well as the company’s structural attractiveness and

compatibility with its objectives and resources. The company will then choose one out of the

four marketing strategies which range from very broad to very narrow targeting.

Segmentation of the market:

When a company attempts in evaluating market segments, it considers three important factors:

1. Size and growth of segments;

2. The structural attractiveness of a segment;

3. Company goals and resources

First, a company chooses a segment with the appropriate size and market growth; this is a matter

of degree. Fast-growing segments aren't always the most attractive, but they are highly

competitive and have higher profit potential.

Choosing market segments to target:

Firms choose one or more segments to enter after evaluating the various segments. A target

market is defined as "a group of buyers who have similar needs and characteristics." The target

market also has several different levels and these are as follows:

Undifferentiated marketing is also referred to as mass marketing. It is a marketing strategy in

which a company disregards market segmentation and targets the entire market with a single

offer. This strategy is appropriate for everyday items such as rice, potatoes, oil, salt, and so on.

Differentiated marketing is also referred to as segmented marketing. It is not suitable for

everyone. It is defined as a marketing strategy wherein a company decides to target multiple

market segments and develops distinct offers for each. For example, upper-class women, middle-

class men, and so on.

Concentrated marketing is also referred to as niche marketing. It is considered a strategy wherein

a company seeks a large share of a single or a few sections or even opportunities.

Micromarketing is the production of products and the organization of marketing programs

wherein it is also available in two varieties to meet the needs of a specific individual or local

customer.

Local marketing is defined as the process of modifying products to the needs of local customer

segments. Pastries and cakes in Goldilocks or Red Ribbon, for example.

Individual marketing is the process of tailoring goods and services to individual preferences.