Chapter 10 Developing a Target Market Strategy Huang pei Ph. D
Chapter 10 Developing a Target Market Strategy Huang Pei Ph.D
Obiectives To describe the process for planning a target market strategy To examine alternative demand patterns and segmentation bases for both final and organizational consumers s To explain and contrast undifferentiated marketing (mass marketing), concentrated marketing, and differentiated marketing(multiple segmentation) To show the importance of positioning in developing a marketing strategy e To discuss sales forecasting and its role in target marketing
Objectives ◆ To describe the process for planning a target market strategy ◆ To examine alternative demand patterns and segmentation bases for both final and organizational consumers ◆ To explain and contrast undifferentiated marketing (mass marketing), concentrated marketing, and differentiated marketing (multiple segmentation) ◆ To show the importance of positioning in developing a marketing strategy ◆ To discuss sales forecasting and its role in target marketing
10-1: Overview ◆ market market segmentation-dividing the market into distinct subsets of customers that behave in the same way or have similar needs Developing a target market strategy consists of three general phases: analyzing consumer demand targeting the market, and developing the marketing strategy
10-1: Overview ◆ market ◆ market segmentation–dividing the market into distinct subsets of customers that behave in the same way or have similar needs. ◆ Developing a target market strategy consists of three general phases: analyzing consumer demand, targeting the market, and developing the marketing strategy
undifferentiated marketing(mass marketing-targeting the whole market with a single basic marketing strategy intended to have mass appeal concentrated marketing-targeting one well-defined market segment with one tailored marketing strategy; differentiated marketing (multiple segmentation) targeting two or more well-defined market segments with a marketing strategy tailored to each segment Third, a firm positions its offering relative to competitors and outlines the proper marketing mix(es). Of particular importance here is attaining product differentiation
◆ undifferentiated marketing (mass marketing)–targeting the whole market with a single basic marketing strategy intended to have mass appeal; ◆ concentrated marketing–targeting one well-defined market segment with one tailored marketing strategy; ◆ differentiated marketing (multiple segmentation)– targeting two or more well-defined market segments with a marketing strategy tailored to each segment. ◆ Third, a firm positions its offering relative to competitors and outlines the proper marketing mix(es). Of particular importance here is attaining product differentiation
10-2: Analyzing Consumer Demand 1.Determining demand Patterns homogeneous demand, consumers have rather uniform needs and desires for a good or service category clustered demand consumer needs and desires for a good or service category can be divided into two or more clusters(segments) each having distinct purchase criteria
10-2:Analyzing Consumer Demand 1.Determining Demand Patterns homogeneous demand, consumers have rather uniform needs and desires for a good or service category. clustered demand, consumer needs and desires for a good or service category can be divided into two or more clusters (segments), each having distinct purchase criteria
2. Establishing possible Bases of Segmentation Geographic Demographics Personal demographics ◆ Final consumers Organizational Consumers Consumer Life-Styles Blending Demographic and Life-Style Factors 3. Identifying Potential Market Segments
2. Establishing Possible Bases of Segmentation Geographic Demographics Personal Demographics ◆ Final Consumers ◆ Organizational Consumers Consumer Life-Styles Blending Demographic and Life-Style Factors 3. Identifying Potential Market Segments
10-3: Marketing the Market 1. Choosing a Target Market Approach Undifferentiated Marketing (Mass Marketing) Concentrated Marketing Differentiated Marketing (Multiple Segmentation)
10-3: Tarketing the Market 1.Choosing a Target Market Approach Undifferentiated Marketing (Mass Marketing) Concentrated Marketing Differentiated Marketing (Multiple Segmentation)
2. Selecting the Target Market(s) Requirements for Successful Segmentation differences similarities measure large enough reachable
2. Selecting the Target Market(s) ◆ Requirements for Successful Segmentation differences similarities measure large enough reachable
Limitations of Segmentation Appeal to segments that are too small Misread consumer similarities and differences Become cost inefficient Spin off too many imitations of their original products or brands Become short-run instead of long-run oriented Be unable to use certain media(due to the small size of individual segments). Compete in too many segments Confuse people Become locked into a declining segment Be too slow to seek innovative possibilities for new products
◆ Limitations of Segmentation Appeal to segments that are too small. Misread consumer similarities and differences. Become cost inefficient. Spin off too many imitations of their original products or brands. Become short-run instead of long-run oriented. Be unable to use certain media (due to the small size of individual segments). Compete in too many segments. Confuse people. Become locked into a declining segment. Be too slow to seek innovative possibilities for new products
10-4: Developing the Marketing Strategy 1. Positioning the Company's Offering in Relation to Competition 2. Outlining the Appropriate Marketing Mix(es)
10-4: Developing the Marketing Strategy 1. Positioning the Company's Offering in Relation to Competition 2. Outlining the Appropriate Marketing Mix(es)
