Undifferentiated marketing 2 Differentiated marketing 3 Concentrated marketing

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.