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MARKETMARKET

TARGETINGTARGETING

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DEFINITION

Market targeting refers to evaluatingeach market segments attractiveness andselecting one or more of the segments to

enter. Target marketing and markettargeting are not one and the same. Markettargeting is only a step in target marketing.

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Steps in target marketing1. Market segmentation

2. Market targeting3. Designing the marketing mix

4. Product positioning

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Effective segmentation criteria

yMeasurable

ySubstantialyAccessibility

yDifferentiableyActionable

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Evaluating and selecting theEvaluating and selecting the

market segmentsmarket segments

yThis concept involves consideration

on two factors:-1. The segments overall

attractiveness.

2. The companys objective andresources.

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Patterns oftargetmarket

selection1. Single segment consideration.

2. Selective utilization3. Product specialization

4. Market specialization5. Full market coverage

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Single

seg

ment

concentrati

on

Single

seg

ment

concentrati

on

y The firm gains a strong knowledge of thesegments needs and achieves a strong marketpresents.

y Firm enjoys operating economies throughspecializing its production distribution andpromotion.

y The firm can earn a high return on itsinvestment.

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SELECTIVE SPECIALIZATIONy Objectively attractive and appropriate.

y There may be little or no synergy among the segments.

y Each segment promises to be a money maker.y Diversifying the firms risk.

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PRODUCT SPECIALIZATIONy The firm makes a certain product that it sells to several

different market segments.

yThe downside risk is that the product may besupplanted by an entirely new technology.

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Market specialization

y The firm concentrates on serving many needs of aparticular customer group.

yThe firm gains a strong reputation among customersgroup.

y The downside risk is that the customer group maysuffer budget cuts or shrink in size.

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yTargetMarketingStrategies

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Advantages of target market

yA Firm can put all of its efforts on one or moresegments selected.

y Enables a firm to tap marketing opportunities

better.y Enables to develop new loyal customers.

yA firm can expand the market share.

y It is possible to build up company image in thetarget market.

y Target marketing is particularly suitable in case ofservices.

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