Question

Explain the five different target marketing strategies and give examples of firms that use each one and discuss how firms might approach the targeting of noncustomers

1) Single Segment Targeting

2) Selective Targeting

3) Mass Market Targeting

4) Product Specialization

5) Market Specialization

Answer 1

Answer:

Five different target marketing strategies:

1) Single Segment Targeting:The firm enjoys operating econmoics through speacilasing its production, distribution & promotion.If it capture segment ledership, the firm can gain. example: Porsche concentrate on the sports car market & volkswagen on the small car market.

2) Selective Targeting: A firm selects a number of segments, each objectively & appropriate.There may be a little or no synergy among the segments but each promises to be a money maker.The multi segment strategy has the advantage of diversifying at firms risk. example: Bata initially were mostly into popular segment until 1900s then they turned into premium segment while still retaining the appeal of popular segment.

3) Mass Market Targeting:

The firm attempts to serve all customer groups with all products they might need.large firms can cover a whole market in 2 broad ways

Example: In FMCG products, HUL has presence in all market.

4) Product Specialization:

The firm makes a product & sells its to different market segments.the downside risk is that the product may be supplemented by an entirely new technology.

Example: Udupi restaurant in all places i.e low class, high class areas.

5) Market Specialization:

The firm concentrates on serving many needs of a particular customer group.The firm gains a strong reputation in serving this customer group & become a channel for additional products, like the consumer group can use.the downside is that the customer group may suffer cuts or shrinks in size.

Example: Udapi, Italian, Mexican all at single restaurant or place