Company Identify Attractive Market Segments

COMPANY IDENTIFY ATTRACTIVE MARKET SEGMENTS Target Marketing •

Target Market – Consists of a set of buyers who share common needs or characteristics that the company decides to serve

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Evaluating Market Segments – Segment size and growth – Segment structural attractiveness •

Level of competition

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Substitute products

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Power of buyers

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Powerful suppliers

– Company objectives and resources

Target Marketing Strategies •

Undifferentiated (mass) marketing: – Market coverage strategy that ignores market segment differences and targets the whole market with one offer

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Differentiated (segmented) marketing: – Market coverage strategy that targets several market segments and designs separate offers for each 1

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Concentrated (niche) marketing: – Market coverage strategy in which a company pursues a large share of one or a few submarkets

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Micromarketing: – The practice of tailoring products and marketing programs to the needs/wants of specific individuals and local customer groups – Includes: local marketing and individual marketing

Choosing a Target Marketing Strategy •

Considerations include: – Company resources – The degree of product variability – Product’s life-cycle stage – Market variability – Competitors’ marketing strategies

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Socially Responsible Targeting – Some segments, especially children, are at special risk – Spillover from adult to children markets – Many potential abuses on the Internet, including fraud Internet shoppers – Products of questionable benefit – Controversy occurs when the methods used are questionable 2

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