Market targeting selecting target market segments

MARKET TARGETING
Selecting Target Market Segments

Figure 7.2 Market-Targeting Strategies.
MARKET TARGETING

Undifferentiated marketing targets the whole market with one
offer.

Mass marketing

Focuses on common needs rather than what’s different
MARKET TARGETING
Selecting Target Market Segments

Differentiated marketing targets
several different market segments and
designs separate offers for each.
•
Goal is to achieve higher sales and stronger position
•
More expensive than undifferentiated marketing
MARKET TARGETING
Selecting Target Market Segments

Concentrated marketing targets a
large of a smaller market.
•
Limited company resources
•
Knowledge of the market
•
More effective and efficient
MARKET TARGETING
Selecting Target Market Segments

Micromarketing is the practice of tailoring products and marketing
programs to suit the tastes of specific individuals and locations.

Local marketing

Individual marketing
MARKET TARGETING
Selecting Target Market Segments

Local marketing involves tailoring brands and promotion to the
needs and wants of local customer segments.

Cities

Neighborhoods

Stores
MARKET TARGETING
Selecting Target Market Segments

Individual marketing involves
tailoring products and marketing
programs to the needs and
preferences of individual customers.
Also known as:

One-to-one marketing

Mass customization
MARKET TARGETING
Selecting Target Market Segments

Choosing a targeting strategy depends on

Company resources

Product variability

Product life-cycle stage

Market variability

Competitor’s marketing strategies
MARKET TARGETING
Selecting Target Market Segments

LEARNING OBJECTIVE 4
Discuss how companies differentiate and position their products for
maximum competitive advantage.

DIFFERENTIATION AND POSITIONING
Product position is the way the
product is defined by consumers
on important attributes.

Positioning maps show
consumer perceptions of
marketer’s brands versus
competing products on
important buying dimensions.