Undifferentiated marketing 2. Differentiated marketing 3. Concentrated marketing
Market Targeting Undifferentiated marketing targets the whole market with one offer o Mass marketing o Focuses on common needs rather than what’s different E.g. electric and gas utilities, soap, paper towels and gasoline Target Marketing Strategies
Advantages and Disadvantages Developing a product or brand that satisfies all consumer Will have difficulties keeping a strong place in the market and making profit, when several firms follow this strategy heavy competition develops Will have difficulties satisfying smaller segments
Market Targeting Differentiated marketing targets several different market segments and designs separate offers for eac h o Goal is to achieve higher sales and stronger position o More expensive than undifferentiated marketing E.g. Nike offers athletic shoes for different sports such as running, aerobics, cycling, baseball, basketball, tennis… Target Marketing Strategies
Advantages and Disadvantages Minimizes risks, as losses in one segment can be made up for in others Unique product features allow for higher prices Increased costs for differentiated products and marketing
Market Targeting Concentrated marketing: targets a small share of a large market Target Market Strategies
Advantages and Disadvantages Greater knowledge of customers’ needs Economies of scale Entry of a strong competitor Change in size or tastes of the segment
Other Target Market Strategies
Marketing Targeting Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations o Local marketing o Individual marketing Target Market Strategies
Market Targeting Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups o Cities o Neighborhoods o Stores Target Market Strategies
Market Targeting Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers Also known as: o One-to-one marketing o Mass customization Target Market Strategies
Market Targeting Depends on: o Company resources o Product variability o Product life-cycle stage o Market variability o Competitor’s marketing strategies Choosing a Target Market
Choosing a Target Market Strategy 1. Company resources ; when the firm’s resources are limited, concentrated marketing is the better. 2. Product variability ; for uniform products e.g. grapefruit, gasoline or steel, undifferentiated marketing is more suitable. o But for products that vary in design e.g. cameras or automobiles, differentiated or concentrated is more suitable.
Choosing a Market-Coverage Strategy 3.
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- Fall '19
- Marketing, Effective Segmentation, Companies