TARGET

MARKET
• a group of people to
whom a company
intends to sell its
products and services
STEPS IN TARGET
MARKETING
1. Market
Segmentation
2. Market Targeting
3. Market Positioning
 1
Market
Segmentation
 •process of dividing
consumer markets into
smaller groups of
consumers who all share
specific characteristics and
interests
• marketers aim to focus on
the specific needs of these
consumer groups, and
make sure that their
products or brands
respond to these needs
Variables in Market
Segmentation
1) Demographic variable
•age, life cycle stage,
gender, income,
religion, race, and
nationality
2) Geographic
•climate,
population size,
region, terrain
3) Psychographic
•Lifestyle patterns,
hobbies and interests,
opinions and beliefs,
personality
4) Behavioristic
•divides markets by
behaviors and
decision-making
patterns
•purchase,
consumption, usage,
loyalty, special
occasions, benefits
Benefits of Market
Segmentation
•More effective marketing
•more efficient spending
•Higher quality leads
•Identifying niche markets
•Improved customer
retention
•Differentiating your
brand
•More focus
 3 Types of Consumers
Based on Loyalty:

1. Hard Core Loyals –

regularly buy the brand
 3 Types of Consumers
Based on Loyalty:

2. Soft Core Loyals –

sometimes patronize
another brand
 3 Types of Consumers Based
on Loyalty:

3. Switchers – refuse to be
loyal to a specific brand and
will buy whichever is available
 2
Market
Targeting
 •process of examining its
potential market as an
actual target market and
deliberating whether it has
the resources to cater to
that market segment
 •the market segment
chosen must guarantee
greatest potential for
high rate of sales
 Types of Market
Targeting Strategies
1) Undifferentiated
marketing
•mass marketing
•focusing on more than
one segment
•companies will sell a
wide variety of products
or products with highly
generalized features
•Example is SM Malls
and Supermarkets
•prices also vary to
cater all income
brackets
2) Differentiated marketing
•segment marketing
•companies make sure that
their products cater to the
needs of particular
segments
•products sold are
those that have highly
specific features
EXAMPLE:
Creamsilk (for frizzy, fine, straight,
and dry hair); Nescafe 3n1 for
consumers with fast- paced lives;
Nescafe Brewed Coffee for
consumers who seek for an
authentic flavor in their coffee
3)Concentrated marketing
•also referred to as niche
marketing
•products sold are those that
have highly specific features
too
•a company tailors its
products or service to
only one specific
segment called
“niche”
•Example: Luxury cars
for upper-income
bracket consumers
 3
Market
Positioning
•process of creating
favorable impression
to the consumer’s
mind
 Types of Market
Positioning Strategies
1) Feature-based
positioning
•marketers sell their
brands on the basis of
their features
•Example: 3M Sticky
note pads are
advertised for their
special adhesive
feature
2) Use-based positioning
•marketers sell their brands
on the based on their
possible uses or the types of
circumstances when they
can be used
•Example: Magic Sarap
commercial showing
the various dishes that
can be added with the
seasoning
3) User-based positioning
•marketers sell their brands
on the based on the type
of consumer who can
benefit from the product
•Example: Head and
Shoulders shampoo is
being marketed as a
product for young-adult
consumers wanting to have
dandruff-free hair
4) Head-on competitive
positioning
•is used by market
challengers or the “number
two” brands in the market
•Example:
Surf vs. Tide…
Surf is being advertised
as cheaper and more
effective than Tide
5) Lifestyle positioning
•marketers sell their brands
on the basis of their
cultural practices or values
that their target market/s
subscribe to
•Example: Lucky Me
highlighting the value of
strengthening the
relationships among
families