Targeting Positioning Then positioning should be done so that consumers perceive the product as satisfying their needs better than others. Targeting Segmentation Marketer then must select one or more segments to target. And specific marketing mix is decided for distinct segments. Dividing the market into distinct subsets of consumers with common needs or characteristics

Evaluating Market Segments Targeting on the basis of Overall attractiveness of the segment Size Growth Profitability Scale economies Low Risk Less Competition Objectives and Resources of the organization

Selecting the Market Segment Single Segment Concentration Selective Segmentation Full Market Coverage Product Specialization Market Specialization

1. Single Segment Concentration Company may select a single segment. Through concentrated marketing the firm gains a strong knowledge of the segment’s needs and achieves a strong market presence. Firm enjoys operating economies through specializing its operations. But involves higher than normal risk. Example: Volkswage concentrates on the small car market. Single-segment concentration P1 P2 P3 M1 M2 M3

2. Selective Specialization Firm selects a number of segments, each objectively attractive and appropriate. Multi segment coverage strategy has the advantage of diversifying the firm’s risk There may or may not be any synergy among the segments. M1 M2 M3 P1 P2 P3

3. Product Specialization Firm specializes in making a certain product that it sells to several segments. Example: Microscope manufacturer sells its product to: University lab Government lab Commercial lab Product specialization M1 M2 M3 P1 P2 P3

4. Market Specialization Firm concentrates on serving many needs of a particular customer group. Example: Firm that sells an assortment of products only to university laboratory. Market specialization M1 M2 M3 P1 P2 P3

5. Full Market Coverage M1 M2 M3 P1 P2 P3 Full market Firm attempts to serve all customer groups with all the products they might need. Only very large firms can undertake a full market coverage strategy. Example: IBM (Computer Market)

Undifferentiated Marketing Full Market Coverage Full Market Coverage Differentiated Marketing Firm operates in several market segments and designs different programs for each segment. E.g Marriott Undifferentiated Marketing Ignores market segment differences and goes after the whole market with one market offer. E.g. Coco-Cola

Assessment

Thank You !