Targeting

MARKET TARGETING
Agenda
Definition
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
Micromarketing
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 Company sells the same products to all the customer groups. It does not
consider difference among buyers. Product and marketing programme remain
common for all the segments. The firm relies on mass production, mass
distribution, and mass advertising. So, it can considerably reduce production,
distribution, and promotional costs. Similarly, reduced costs result into low price
and the price-sensitive consumers can be attracted. This method is followed by
pharmaceutical companies.
 However, many experts and practicing managers have expressed strong doubts
about the strategy. It is erroneous to believe that all the segments have similar
needs. It is a rare case. Such strategy may invite competition to serve larger
groups of buyers, and smaller groups are neglected. People, in different
segments, differ significantly in terms of needs, preference, and advertising
appeal.
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The company decides to ignore market segment differences.

Targets the whole market with one offer.
It focuses on what is common in the needs of consumers.
It designs a product & marketing program that will appeal to largest number of
customers.
The firm relies on mass distribution & mass advertising.
It creates a superior image of the product in everyone’s mind.
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Agenda
Definition
Micromarketing
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 Here, company operates in several segments and designs different marketing

programmes for each of the segments. Various groups of customers are
targeted by several types of products and marketing strategies. It is based on
the notion that each group needs different products. This strategy is used by the
most of automobile companies. This strategy creates more total sales, but costs
of doing business also on increase.
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Following costs are likely to be higher in
differentiated marketing strategy
 i. Marketing research cost

 ii. Administrative costs
 iii. Manufacturing costs
 iv. Inventory costs
 v. Promotional costs
 vi. Product modification costs
 Here, costs and sales both increase. So, profitability is doubtful. However, it is
less risky. Loss in one segment can be offset against profitable segments. Most
of companies prefer this option. Thus, market targeting is an essential aspect of
marketing programme. A manager needs a lot of experience, knowledge, and
expertise to take decision on target market. The alternative to be used depends
upon a large number of internal and external variables. Careful and objective
analysis of these variables can assist in selecting target market.
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Here the company operates in several market segments.

It designs separate offers for each.
By offering product & marketing variations to segments, companies hope for higher sales
& stronger position within each market segment.
It creates more total sales than mass marketing but at increased cost.
EXAMPLES
Maruti Suzuki – A car for every purse, purpose & personality
NIKE Shoes – for running, golf, cycling & basketball
P&G – 8 brands of laundry detergents worldwide.
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Agenda
Definition
Micromarketing
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Concentrated (Niche)Marketing
 Following the concentrated market targeting strategy, the company focuses on
one or a few segments or niches in a market. The aim is then to reach a large
share in this segment or niche, instead of going after a small share of a large
market.
 Why should a company do so? Clearly it will be able to achieve a stronger
market position in the chosen segment because its knowledge of the consumer
needs in the niche is larger. Also, it may acquire a special reputation for
delivering exactly what the consumer wants in that niche. The company can
fine-tune its products, marketing programmes and prices to the specific needs
of consumers in the niche. Therefore, its marketing becomes more effective. But
marketing may also become more efficient, because the company can tailor its
offerings, channels and programmes to the needs of those consumers it can
serve best and most profitably.
 The difference between a niche and a segment is the size. While a segment is
rather large and will in most cases attract several competitors, a niche is quite
small and may be focused on by few competitors only. Niching thus allows
especially small companies to focus their limited resources on serving niches.
The key is to find those niches that are overlooked by larger competitors.
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Concentrated (Niche)Marketing
It involves marketing in a small but profitable market segment.

It is a narrowly defined customer group desiring a distinctive mix of benefits.
EXAMPLES
Shahnaz Hussains herbal products made of Herbals.
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Agenda
Definition
Micromarketing
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Micromarketing
 Micromarketing means nothing else than tailoring the marketing programmes

and products to the needs and wants of individual consumers or local customer
segments. This is the narrowest market targeting strategy possible. Instead of
seeing a customer in every individual, we see the individual in every customer.
We can tailor our products and programmes to suit the tastes of specific
locations of specific individuals. Therefore, micromarketing can take the form of
local marketing and individual marketing.
 Under the local marketing strategy, we tailor brands and promotions to the
specific needs and wants of groups of local customers. These may be cities,
neighbourhoods etc.
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Micromarketing
Micromarketing includes individual marketing and local marketing.

Individual marketing, also known as one-to-one marketing, is an example of
micromarketing. Today, it is possible for firms to customize products to order.
Using computers and the Web, it is possible for firms to manufacture custom-made
products.
With micromarketing, the approach calls for getting to know the client’s needs, likes, and
dislikes very well.
This makes it easier to match that consumer with the goods or services that are being
offered.
The approach is often successful because the client receives a sense of being important
to the marketer and sees the efforts to connect as being on a more personal level rather
than a general one.
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Local marketing
 Tailoring brands and marketing to the needs and wants of local customer
segments-cities, neighborhoods, and even specific stores
 For example, Marriot’s Renaissance Hotels has rolled out its Navigator
program, which hyper-localizes guest experiences at each of its 155 lifestyle
hotels around the world
 Local marketing has some drawbacks. It can drive up manufacturing and
marketing costs by reducing economies of scale.
 It also creates logistics problems as companies try to meet the varied
requirements of different local markets.
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Individual Marketing
 Tailoring products and marketing programs to the needs and preferences of

individual customers
 In the extreme, micromarketing becomes individual marketing
 Also called one to one marketing
 Companies these days are hyper-customizing everything from food, artwork,
earphones, and sneakers to high end luxury products.
 Visit Nike ID or Puma factory online to design and order personalized sneakers.
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Thank you
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MARKET TARGETING

The company decides to ignore market segment differences.

 Here, company operates in several segments and designs different marketing

 i. Marketing research cost

Here the company operates in several market segments.

It involves marketing in a small but profitable market segment.

 Micromarketing means nothing else than tailoring the marketing programmes

Micromarketing includes individual marketing and local marketing.

 Tailoring products and marketing programs to the needs and preferences of

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