Please enable JavaScript.
Coggle requires JavaScript to display documents.
Market targeting, Precise targeting - Coggle Diagram
Market targeting
Evaluate market segments
Size & Growth
Structural attractiveness
Affect long-run segment attractiveness
Less attractive if it contains many strong & aggressive competitors
Many potential substitute products limit prices and profits
Power of buyer affect segment attractiveness
Less attractive: contains powerful suppliers
Company objectives and resources
Selecting target market segments
Target segment
A set of buyers who share common needs or characteristics that the company decides to serve
Undifferentiated MKT
Ignore market segment differences and target the whole market with one offer
Focus on what is common in the needs of consumers
Concentrated MKT
Meaning: the company goes after a large share of 1 or a few smaller segments
Niches focus their limited resources on serving niches that may be unimportant to or overlooked by larger competitors
Higher thannomal risks
Differentiated
Target several market segments and designs separate offers for each
Micromkt
Micromkt
TAILOR
products and MKT programs to suit the tastes of specific individuals and locations
Local MKT
Tailor brands and promotions to the needs and wants of local customer groups
Meet the needs of the company's first-line customers
Individual MKT
TAILOR
products and MKT programs to the needs and preferences of individual customers
Mass customisation
Firms interact 1 to 1 with masses of customers to design products and services tailor-made to individual needs
Choosing a targeting strategy
Market variability
Buyers have same tastes, buy the same amounts and react the same way
Use undifferentiated MKT
Competitors' MKT strategies
Company resources
when limited --> use concentrated MKT
Product variability
Uniform products
Use undifferentiated MKT
Products vary in design
Suited to differentiation or concentration
Product's life cycle stage
Younger stage
Use undifferentiated and concentrated MKT
Mature stage
Use differentiated MKT
Socially responsible target MKT
Calls for segmentation and targeting that serve not just the interests of the company but also the interests of those targeted
Precise targeting
Differentiating a company's offering to meet specific needs of its chosen market segment
Establish a competitive ad and foster profitable customer rela