Lecture Market Targeting

  • Uploaded by: hinali72
  • 0
  • 0
  • May 2020
  • PDF

This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA


Overview

Download & View Lecture Market Targeting as PDF for free.

More details

  • Words: 751
  • Pages: 17
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.

Related Documents


More Documents from ""