Targeting

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Targeting & Segmentation : 

Targeting & Segmentation

Target Marketing : 

Target Marketing Identifying those particular groups of customers which your product/service is capable of meeting their requirements (needs) most. Each of these groups constitute a market segment Selecting one or more segments to enter Establishing and communicating the product’s key distinctive benefits in that market

Market Segment : 

Market Segment A large identifiable group within a market with similar wants, purchasing power, geographical locations, buying attitudes

Niche Marketing : 

Niche Marketing What is an attractive niche ? A distinct set of needs A premium can be charged Not likely to attract competition Gains certain economies through specialisation Sufficient size, profit and growth potential

Local Marketing : 

Local Marketing When the marketing mix is altered to suit the local conditions eg. Giving a higher/ lower discount than what’s prevailing in the rest of the markets or implementing a different promotion scheme

Individualised Marketing : 

Individualised Marketing When the firm deals with each customer on a one – to – one basis When products are customised for the customer

Bases for Segmentation : 

Bases for Segmentation Geographic –territory demarcations Demographic – age, family size, sex, income,education, religion, etc. Psychographic – lifestyle,personality,values Behavioral – knowledge,attitudes,usage

Behavioral variables : 

Behavioral variables Occasions – birthdays, lunchtime,vacations Benefits – eg.travel – business, vacation, educational User status – non users, ex users, first time users, regular users, potential users Usage rate – light, medium, heavy

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Loyalty status – diehards,shifters,switchers Buyer Readiness – unaware – aware – informed – interested – desire – intention to buy Attitude – enthusiastic, positive, indifferent, negative, hostile

Criteria for segmentation : 

Criteria for segmentation Measurable Substantial Accessible Differentiable Actionable

Market Targeting : 

Market Targeting Single segment concentration Selective specialisation Product specialisation Market specialisation Full Market coverage - undifferentiated marketing differentiated marketing

Undifferentiated Marketing : 

Undifferentiated Marketing Single product addressing all segments with a single marketing program. Mass production is possible giving scale economies Pushes price downwards enabling to attract price sensitive segments

Differentiated Marketing : 

Differentiated Marketing A separate market offering for every segment Marketing programs for every segment could be different Pushes up costs at various levels, necessitating sufficient volumes for viability Generates inter-segment rivalry