Targeting Strategies and the Marketing Mix.pptx - Targeting...

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TargetingStrategies and theMarketing Mix1
Introduction to Targeting and the Marketing MixSegmentation helps you decide who your target customers are,while targeting helps you zero in on the best method for reachingthem. Your targeting strategy helps you set priorities for makingan impact on your target segments and on the market as awhole. As you’ll see in this section, your targeting strategy alsohelps you determine which combination of product, promotion,place, and price—i.e., which marketing mix—will best fit thesegments you are trying to capture.2
Using the Marketing Mix toReach Target SegmentsOnce target segments are identified, the marketing managerselects a targeting strategy that will be the best fit for reachingthem. Targeted marketing enables the marketing and salesteams to customize their message to the targeted group(s) ofconsumers in a focused manner. The targeting strategy is wherethe marketing-mix comes together to create the right offer andmarketing approach for each target segment. A summary ofcommon targeting strategies is provided in the table below.StrategyTarget MarketExampleMass marketingEverybody everywhereTargetDifferentiated marketingLarge groups within the totalmarketCostco, Sam’s ClubNiche marketingHigh penetration withinsmaller, specialized segmentsTrader Joe’s, Whole FoodsMicromarketingIndividual customers orlocalized microsegmentsGroupon3
Mass MarketingMass marketing, also called undifferentiated marketing, involvesmarketing to the entire market the same way. Mass marketingeffectively ignores segmentation and instead generates a singleoffer and marketing mix for everyone. The market is treated as ahomogeneous aggregate. Mass marketing aims to reach thelargest audience possible, and exposure to the product ismaximized. In theory, this would directly correlate with a largernumber of sales or buy-in to the product.Mass marketing tries to spread a marketing message to anyoneand everyone willing to listen. Communication tends to be lesspersonal, as evidenced by common mass-marketing tactics:national television, radio, and print advertising campaigns;nationally focused coupons; nationally focused point-of-purchasedisplays. The success of mass-marketing depends on whether itis possible to reach enough people, through mass-communication4
Mass Marketing (cont.)techniques and one universal product offer, to keep theminterested in the product and make the strategy worthwhile.While mass-marketing tactics tend to be costly because theyoperate on a large scale, this approach yields efficiencies andcost savings for companies because it requires the marketingteam to execute only one product offer and marketing mix.For certain types of widely consumed items (e.g., gasoline, softdrinks, white bread), the undifferentiated market approachmakes the most sense. For example, toothpaste (such as thebrand Crest) isn’t made especially for one consumer segment,and it is sold in huge quantities. The manufacturer’s goal is to getmore people to select and buy their particular brand overanother when they come to the point of purchase. Walkthroughany supermarket, and you will observe hundreds of groceryproducts, especially generic items, that are perceived as nearlyidentical by the consumer and are treated as5

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