Friday, October 13, 2017

Explain how companies identify attractive market segments & choose a market - targeting strategy.

Market targeting :


Identify the attractive market segment means targeting. After dividing the markets into smaller segments then marketers evaluate each markets attractiveness, after then select one or more unit to enter.


Evaluating market segments:

When a firm tries to evaluate the market segments it goes through three important factors :
1. Segment size & growth;

2. Segment structual attractiveness ;

3. Company objectives & resources.

 First , a firm select a segment that have the right size & market growth; its actually a relative matter.  Everytime fast- growing segments aren't always the most attractive segments but they are very competitive & have potentiality  for more profit.

Selecting target market segments:

After evaluate the different segments, firms decide one or more segments to enter. A target market consists of " a set of buyers who share common  needs & characteristics". It has also some several different levels . These are describe below:


Undifferentiated marketing:  It also called mass marketing. It is a marketing strategy in which a firm ignores market segmentation & go after the whole market with a single offer. This strategy is appropriate for regular goods like rice, potatoes, oil, salt etc.

Differentiated marketing:  It also known as segmented marketing. Its not for all. It is a marketing strategy in which firm decides to target several market sevments  & designs different offers for each. For example: higher class women, middle class men etc.

Concentrated marketing: It also known as niche marketing. It is a strategy in which  firms goes after a large share of one or few segments or niches. For example: nothern part of the capital city ,in this  particular area's kid who born in abroad specially girls kid.

Micro marketing:  Producing products & arranging marketing programs to the needs of a specific individual & local customer. It also two types .

∆ Local Marketing: Tailoring products to the needs of local customer segments. For example- sweets in brikrampur.

∆  Individual marketing:  Tailoring goods &,services to the needs of individuals preference.
For example: when I ordered some thing of my own choices - birthday cakes , dresses etc.

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