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Targeting Markets : 

Targeting Markets Prepared By Sudhir Kr Sinha

Learning Objective : 

Learning Objective Introduction Levels of Target Marketing 10/30/2010 SUDHIR KR SINHA 2

Target Market : 

3 Target Market A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. 10/30/2010 SUDHIR KR SINHA

Levels of Target Marketing : 

Levels of Target Marketing Undifferentiated target marketing (Mass Marketing) Concentrated Marketing (Niche Marketing) Differentiated target marketing (Segmented Marketing) Micro Marketing (Local and Individual Marketing) 10/30/2010 SUDHIR KR SINHA 4

Undifferentiated Targeting : 

5 Undifferentiated Targeting Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix. 10/30/2010 SUDHIR KR SINHA

Undifferentiated Targeting : 

6 Undifferentiated Targeting Advantages: Potential savings on production and marketing costs Disadvantages: Unimaginative product offerings Company more susceptible to competition 10/30/2010 SUDHIR KR SINHA

Concentrated (Niche) Targeting : 

7 Concentrated (Niche) Targeting A strategy used to select one segment of a market for targeting marketing efforts. 10/30/2010 SUDHIR KR SINHA

Niche : 

Niche 8 Customers have different sets of needs Prepared to pay premium price Not likely to attract other companies Economies of scale through specialization Adequate size, profits and growth potential One segment of a market. 10/30/2010 SUDHIR KR SINHA

Concentrated Targeting : 

9 Concentrated Targeting Advantages: Concentration of resources Meets narrowly defined segment Small firms can compete Strong positioning Disadvantages: Segments too small, or changing Large competitors may market to niche segment 10/30/2010 SUDHIR KR SINHA

Multi-segment Targeting : 

10 Multi-segment Targeting A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each. 10/30/2010 SUDHIR KR SINHA

Multi-segment Targeting : 

Multi-segment Targeting 11 A car for every ‘Purse, Purpose and Personality’ Chevrolet (chevy) Spark; Beat; Aveo- u-va, Optra; Cruze; Tavera; Captiva Eight brands of laundry detergents 10/30/2010 SUDHIR KR SINHA

Multi-segment Targeting : 

12 Advantages: Greater financial success Economies of scale Disadvantages: High costs Cannibalization Multi-segment Targeting 10/30/2010 SUDHIR KR SINHA

Cannibalization : 

13 Cannibalization Situation that occurs when sales of a new product cut into sales of a firm’s existing products. 10/30/2010 SUDHIR KR SINHA

Spark v/s Beat : 

Spark v/s Beat 14 It sold 9,539 units in June 2010 against 4,492 units in June 2009. It sold 3,415 units of Chevrolet Beat, 2,911 units of the Chevrolet Spark, 10/30/2010 SUDHIR KR SINHA

Micro Marketing : 

Micro Marketing Tailoring products and marketing programmes to suit the tastes of specific individuals and location 10/30/2010 SUDHIR KR SINHA 15