consists of a set of buyers who share common needs or characteristics that the

Consists of a set of buyers who share common needs or

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consists of a set of buyers who share common needs or characteristics that the company decides to serve. Figure 7.2: Market-targeting strategies Undifferentiated Marketing Using an undifferentiated marketing (or mass- marketing ) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer. This mass-marketing strategy focuses on what is common in the needs of consumers rather than on what is different . Differentiated Marketing Using a differentiated marketing (or segmented market- ing ) strategy, a firm decides to target several market segments and designs separate offers for each. It hopes for higher sales and a stronger position within each market segment. But it also increases the cost of doing business. Concentrated Marketing p. 198 Figure 7.2: Market- Targeting Strategies p. 198 Key Terms: Target market, Undifferentiated (mass) marketing, Differentiated (segmented) marketing p. 199 Photo: P&G p. 199 Key Term: Concentrated
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p. 200 PPT 7-23 p. 200 PPT 7-24 p. 202 PPT 7-25 p. 203 PPT 7-26 Using a concentrated marketing (or niche marketing ) strategy, instead of going after a small share of a large market, the firm goes after a large share of one or a few smaller segments or niches. It can market more effectively by fine-tuning its products, prices, and programs to the needs of carefully defined segments. It can market more efficiently , targeting its products or services, channels, and communications programs toward only consumers that it can serve best and most profitably. Micromarketing Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Micromarketing includes local marketing and individual marketing . Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores. Local marketing has drawbacks. It can drive up manufacturing and marketing costs by reducing economies of scale. It can create logistics problems. Individual marketing is the tailoring of products and marketing programs to the needs and preferences of individual customers. Individual marketing has also been labeled one-to-one marketing , mass customization, and markets-of-one marketing . Choosing a Targeting Strategy Which strategy is best depends on: Company resources Product variability Product’s life-cycle stage Market variability (niche) marketing p. 199 Photo: Stance Socks p. 200 Photo: Stitch Fix p. 200 Key Terms: Micromarketing, Local marketing p. 201 Photo: Local Marketing, Marriott p. 202 Key Term: Individual Marketing p. 202 Photos: Rolls- Royce
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Competitors’ marketing strategies p. 203 Socially Responsible Target Marketing Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of vulnerable or disadvantaged consumers with controversial or potentially harmful products. Marketers in a wide range of industries have been criticized for their marketing efforts directed toward children.
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  • Fall '17
  • KULKARNI SMITA
  • Marketing, Effective Segmentation

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