Market Segmentation Targeting and Positioning

1165 WordsFeb 11, 20135 Pages
MARKET SEGMENTATION, TARGETING and POSITIONING Objectives: At the end of the lesson, students will be able to: • Define market segmentation, market targeting, and market positioning. • Discuss the major bases for segmenting consumer and industrial markets • Explain how companies identify attractive market segments. • Explain how companies position their products in the marketplace. TARGET MARKETING Different Marketing Practices Organizations recognize that they cannot appeal to all buyers in a given market. Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices. So instead of trying to compete in the entire market, each company must identify parts…show more content…
Undifferentiated marketing - A firm may decide to ignore market differences and go after the whole market with one market offer. It focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and marketing program that appeals to the largest number of buyers. It relies on mass distribution and mass advertising and aims to give the product a superior image in people's minds. 2. Differentiated marketing - A firm decides to target several market segments and designs separate offers for each. 3. Concentrated marketing - Instead of going after a small share of a large market, the firm goes after a large share of one or a few submarkets. This is especially appealing when company resources are limited. Choosing a Market-Coverage Strategy Factors to Consider 1. Company resources - When the firm's resources are limited, concentrated marketing makes the most sense. 2. Product Variability - Undifferentiated marketing is more suited for uniform products such as grapefruit or steel. Products that can vary in design, such as cameras and cars, are more suited to differentiation or concentration. 3. Product's Stage in the
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