target marketing presentation

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Focusing marketing decisions on a very specific group of people an organization wants to reach.

For e.g. Mercedes focuses rich class

Identifying and developing products/services for a specific market.

For e.g. Colgate Palmolive co. focused on kids products along with its dealing in personal care, oral care, household care.

Size of the segment (no. of customers/no. of units)

Growth rate of segment

Competition in segment ( the largest, fastest- growing segments are not always the most attractive ones for every co.)

Brand loyalty of existing customers in segment.

Aggressive competitors may limit the prices and the profits that can be earned in a segment.

Even if a segment has right size and growth and is structurally attractive, the company must consider its own objectives and resources.

The co. should enter only those segments in which it can offer superior value and gain advantage over competitors.

Targeting broadly

Targeting narrowly

A strategy in which a firm decides to ignore market segment differences and go after whole market with one offer.

For example: Coca-Cola co., Britannia etc.

One ProductEntire Market

Merits : 1. Minimizes production, inventory, administrative, selling &

distribution costs.

2. Research &development costs lowered providing large

profits in short run.

Demerits : 1.Difficult to develop a product which satisfies all

customers.

2.Trouble in competing with firms that focus on satisfying needs of specific segments.

A strategy in which a firm decides to target several market segments and designs separate offers for each.

Segment 1

Segment 2

Segment 3

Company

For example: KFC introduced both veg & non-veg products on need of customers.

For example: Maruti Suzuki Co.

Merits: 1. By offering product and market variations to segments, co.’s hope for higher sales and stronger position within each market segment. 2.Creates more total sales than undifferentiated marketing across all segments.

Demerits: 1.It requires extra marketing research, forecasting, sales analysis for each segment.

2.A firm usually finds more expensive to develop and produce say, 10 units of 10 different products than 100 units of one product.

The strategy in which a firm goes after a large share of one or a few segments i.e. instead of going after a small share of large market, the firm goes after a large share of one or few segments.

Segment 1

Segment 2

Segment 3

Company

For example: Apple Computer when introduced I tunes it captured 70% of music download market.

Rolls Royce automobile co. focuses only to wealthiest class of society.

Merits: 1.Organisation become a specialist in needs of its selected market segment. 2.Firm earns high rate of return on its investments.

Demerits: 1.Involves higher than normal risk.

2.Larger competitors may decide to enter with greater resources which may result into reducing market share.

It is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Local Marketing

Individual Marketing

Local marketing: It involves tailoring brands and promotions to the needs and wants of local customer groups – cities, neighborhoods or specific stores.

Individual marketing: Tailoring products and marketing programs to needs and preferences of individual customers.

• It makes relationships with customers more important.

• Involve customers in product development & buying process

Smart targeting helps co.’s to be more efficient and effective by focusing on segments.

Co. should be engaged in only those segments which are profitable.