1. 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

2. 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

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

4. 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

5. 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

6. 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

7. 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

8. 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)

9. 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

10. Assessment

11. Thank You !