Market Targeting - Class 10
Market Targeting is the process of evaluating each identified market segment and choosing the best segment to enter.
Evaluating the segment:
The attractiveness of a particular segment depends on many factors like size of the segment, growth prospects in the segment, accessibility of the segment, nature of the product being produced and resources of the company.
Nature of the product and resources of the company would largely affect the number of segments to enter.
Selecting the segment:
Once the company has selected the segments, it should decide the strategies to target these segments which will again depend on the nature of product, resources of the organization and the strategy that the top management wants to adopt.
Strategies of Market Targeting
- Undifferentiated marketing (Mass marketing)
- Differentiated marketing (Multi / Segment-based marketing)
- Concentrated marketing (Niche / Large / Single-segment marketing)
- Individual marketing (Micro / Sub-segment marketing)
- Undifferentiated Strategy (Mass marketing):
Under this strategy, the marketer makes a single marketing plan for the product to be used by all the customers in the market and considers the whole market as one segment. He sells his product to everyone without differentiating like in case of steel, cement, sugar, salt etc.
The strength of this strategy lies in its being cost-effective.
2. Differentiation Strategy (Segmented marketing):
In this case, the company decides to segment the total market into different segments and then designs separate products for different segments. This type of strategy is generally followed by garment and shoe manufacturers, airlines.
Differentiated marketing also means more cost to the company as the company has to make a separate product for each segment.
3. Concentrated Marketing (Single-segment marketing):
In this strategy, the marketer selects only one single segment out of the various segments available because of less competition like equipment for disabled, western wear for Indian ladies.
It is used when the resources are limited. In this case, the company assumes a strong position in the market.
4. Individual Marketing/Customised Marketing:
Individual marketing means producing products suited to the specific needs of specific individuals to satisfy their needs and preferences. It is also known as ‘one-to-one’ marketing.
Individual marketing can be used for a task such as a barber giving a particular haircut to his customer to an architect planning a housing complex for his client. It aims at building relationships with customers.
Market Targeting - Class 10
Summary
Strategy of Market Targeting - Market Served - Marketing Strategy Required
- Undifferentiated/Mass -- Total Market -- One mass strategy
2. Differentiated/Multi Segmented -- Selected segments -- Different strategies
3. Concentrated/Niche /Large/ Single-segment -- Single Segment -- Single strategy
4. Individual/ Micro/ Customized/ Sub-segment -- One individual -- Single unique strategy