Target Marketing

Introduction

Target marketing is basically the process of evaluation of each segment of markets so as to decide as to which markets to be taken up or which all are not to be taken up

EVALUATION - The three basic factors needed to be evaluated; 1. SEGMENT SIZE & GROWTH It is not always that the largest segment is attractive. The marketer may find that the smaller segments offer higher scope and better values for the markets. The company may itself have limited resources and therefore may choose different segment

2. SEGMENT STRUCTURAL ATTRACTIVENESS - The size and growth as also the competition in that segmentation is necessary. The company may find that the structure of the market offers a competitive environment from even other similar products which are cheaper and therefore may find the segment less attractive.

Target Marketing

Introduction

3. COMPANY OBJECTIVES AND RESOURCES Finally the objectives of the company must be met in the long run. Some segments therefore can be discarded or neglected where the companys long term objectives do not match It may also be possible that the companys skills and resources do not gel properly The company therefore should enter only where they can offer SUPERIOR VALUES and GAIN ADVANTAGES over competitors.

Target Marketing SELECTING TARGET MARKET SEGMENTS

Introduction

UNDIFFERENTIATED MARKETING

Undifferentiated or Mass marketing is to target the entire market, ignoring the differences.
The product and marketing program is designed so that it appeals to all. In present environments this is not possible and as such rarely adopted

DIFFERENTIATED MARKETING Separate types of products and different marketing programs are designed for such markets. It is true that these days when the consumers have different needs and aspirations, different products and programs are designed. This helps in increasing sales and position in the market.

Target Marketing

Introduction

CONCENTRATED (NICHE) MARKETING (examples being no-frill airlines) When the company has limited resources, the company chooses for NICHE marketing, meaning instead of going for a small share in large market, the company decides to go in for one or two segments for a large share This helps in the following ways; a. Greater knowledge of markets and consumers needs

b. Can market better by fine tuning its products, prices and programs to the needs of the customers
c. It can be highly profitable but it involves higher than normal risks as the company is serving a small segment and if anything goes wrong, it takes a beating and then needs to do or take some strategy afresh.

Target Marketing
MICRO MARKETING

Introduction

It is the practice of tailoring the products and marketing programs for specific individuals and segments It includes LOCAL marketing and INDIVIDUAL marketing

Local is designing brands and promotions to needs of local customer groups READY MADE DRESSES for ladies
Individual marketing is designing product for the individual customers like computers, suits and dresses for individual for particular occasions