Selecting Target Market Segments

Date: 2015-10-07; view: 480.

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. Such a strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers

Differentiated Marketing: Using a differentiated marketing (or segmented marketing) strategy, a firm decides to target several market segments and designs separate offers for each. But differentiated marketing also increases the costs of doing business.

Concentrated Marketing: Using a concentrated marketing (or niche marketing) strategy, instead of going after a small share of a large market, a firm goes after a large share of one or a few smaller segments or niches. Through concentrated marketing, the firm achieves a strong market position because of its greater knowledge of consumer needs in the niches it serves and the special reputation it acquires.

Micromarketing: Differentiated and concentrated marketers tailor their offers and marketing programs to meet the needs of various market segments and niches. At the same time, however, they do not customize their offers to each individual customer. Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Rather than seeing a customer in every individual, micro-marketers see the individual in every customer. Micromarketing includes local marketing and individual marketing.