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Market Target!

Market targeting involves segmenting the entire market and developing specific marketing strategies for each segment to increase market share. When choosing a market coverage strategy, companies should consider factors like their resources, product variability, the product's stage in its life cycle, competitors' strategies, and market variability. Undifferentiated marketing targets the whole market with one offer and is best for uniform products. Differentiated marketing targets multiple segments with tailored offers, while concentrated marketing targets a large share of one or few submarkets. The document provides examples and discusses important considerations for companies in selecting their market coverage strategy.

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Ken Gorres
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62 views14 pages

Market Target!

Market targeting involves segmenting the entire market and developing specific marketing strategies for each segment to increase market share. When choosing a market coverage strategy, companies should consider factors like their resources, product variability, the product's stage in its life cycle, competitors' strategies, and market variability. Undifferentiated marketing targets the whole market with one offer and is best for uniform products. Differentiated marketing targets multiple segments with tailored offers, while concentrated marketing targets a large share of one or few submarkets. The document provides examples and discusses important considerations for companies in selecting their market coverage strategy.

Uploaded by

Ken Gorres
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MARKET

TARGETING!
GORRES,KENNETH E.
SUMANDAG, VANESSA
ROBLES, MAYBELLE
MARKET
TARGETING
Involves breaking down the
entire market into various
segments and planning
marketing strategies
accordingly for each segment
to increase the market share
LESSON 10 DIFFERENT DIMENSIONS OF
MARKET SEGMENTS
Segment Attractiveness- Segments with the
right size and growth characteristics are
interesting.

Business Strengths (company fit)- the


company must consider its objectives
and resources for that segment.
THESE ARE THE SEVERAL SIGNIFICANT STRUCTURAL FACTORS
THAT AFFECT LONG-RUN SEGMENT ATTRACTIVENESS:

a.Competitors- the company should assess current and


potential competitors. A segment is less attractive if it
already contains many strong and aggressive competitors

b. Power of buyer- this also affects segment attractiveness. If


the buyers in a segment possess strong or increasing
bargaining power relative to sellers, they will try to force prices
down, demand more quality or services, and set competitors
against one another. All these actions will reduce the seller’s
profitability.
THESE ARE THE SEVERAL SIGNIFICANT STRUCTURAL
FACTORS THAT AFFECT LONG-RUN SEGMENT
ATTRACTIVENESS:

c. Power of Suppliers-a segment is less attractive if the


suppliers of raw materials, equipment, labor and services in
the segment are powerful enough to raise prices or reduce
the quality or quantity of ordered goods and services.
LESSON 10
BUSINESS STRENGTHS (OR
COMPANY FIT)
SELECTING
MARKET
SEGMENTS
When a segment fits the
company’s strengths, the
company must then decide
whether it has the skills and
resources needed to succeed
in that segment. Each
segment has certain success
requirements.
SEGMENT STRATEGY
Market-coverage Strategies
Undifferentiated marketing (or
mass marketing)

Differentiated marketing

Concentrated marketing
Undifferentiated marketing (or mass marketing)
- a market-coverage strategy in which a firm
decides to ignore market segment differences
and go after the whole market with one offer.

Examples:
A.) Toothpaste is the best example. You can use any
toothpaste
B.) Bottled water, vegetables, rice, basically anything mass
produces and mass-consumed
Differentiated marketing – a market-coverage
strategy in which a firm decides to target several
market segments and designs separate offers for
each.
Examples:
A.) an organic coffee with a standard and premium version.

B.) a restaurant offering cheap food and drink menus for


college students and also appeal to a kid-friendly
environment and meal options for families.
Concentrated marketing – a market-coverage
strategy in which a firm goes after a large share
of one or a few submarkets.

Examples:
A.) C.) An IT training center only markets to Computer Science
graduate students, IT workers, and professionals in the fields related
to information technology

B.)Mechanical Keyboards. Several small companies target codes or


programmer, pc gamers
RIMBERIO CO

CHOOSING A MARKET-COVERAGE STRATEGY


Factors needed to be considered when choosing a market-coverage
strategy:
1. COMPANY RESOURCES – CONCENTRATED MARKETING MAKES SENSE FOR
A FIRM WITH LIMITED RESOURCES.

2. PRODUCT VARIABILITY – UNDIFFERENTIATED MARKETING IS SUITABLE


FOR UNIFORM PRODUCTS SUCH AS GRAPEFRUIT OR STEEL

3. PRODUCT’S STAGE IN THE LIFE CYCLE – WHEN A FIRM INTRODUCES A


NEW PRODUCT, IT IS PRACTICAL TO LAUNCH ONLY ONE VERSION, AND
UNDIFFERENTIATED MARKETING OR CONCENTRATED MARKETING
THEREFORE MAKES THE MOST SENSE.
RIMBERIO CO

CHOOSING A MARKET-COVERAGE STRATEGY


Factors needed to be considered when choosing a market-coverage
strategy:

5.COMPETITORS’ MARKETING STRATEGIES


– WHEN COMPETITORS USE SEGMENTATION, UNDIFFERENTIATED
MARKETING CAN BE SUICIDAL.

4. MARKET VARIABILITY – UNDIFFERENTIATED MARKETING IS


APPROPRIATE WHEN BUYERS HAVE THE SAME TASTES, BUT THE SAME
AMOUNTS AND REACT IN THE SAME WAY TO MARKETING EFFORTS.
RIMBERIO CO

THANK YOU

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