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 Targeting

Selecting Target Markets

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0

Marketing Management ² Module 3

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Some«..Targets«..

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` Himalayan

` Anne French

` Havell·s

` Fevicol

` White Adhesive - Binding

` M Seal ² Filling

` Feviquik -Trasparent

`

Asian Paints` Idea Mobile

` Naukri.com

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 Targeting (page no. 299 kotler)

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Single Segment/ Concentration Selective Specialization

P1

P2

P3

M1

M2

M3P1

P2

P3

M1 M2 M3

 John Deere ² Construction equipment M& M ²Tractors; Time Share;

Automobiles

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 Targeting (page no. 299 kotler)

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Market Specialization Product Specialization Full Coverage

P1

P2

P3

M1 M2 M3 M1 M2 M3 M1 M2 M3

1. Undifferentiated Market

2. Differentiated Market

Equipment for

University laboratories

Only Glass equipment for

Laboratories

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Differentiation

Strategy and types

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Marketing Management ² Module 3

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Differentiation

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` Differentiation allows the firm to get a price premiumbased on the extra value perceived by and delivered to

customers

` Better (performance), Newer (New solution/product), Faster

(reducing time) or cheaper (reducing cost/price)

` Three strategies that lead to differentiation (COP)

` Operational Excellence ² Supermarkets ² cutting supply chain

` Customer Intimacy ² Customized responses` Product Leadership ² Nike, Apple, Sony

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Differentiation page no 319

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` Product Differentiation (PCDRRFSD)` Features ² characteristics that supplement basic functioning

` Performance ² levels at which primary characteristics function

` Conformance ² product design & operating characteristics vs.

standards.` Durability ² product·s expected operating life

` Reliability ² probability that the product will not malfunction

or fail within a certain period of time

`

Reparability ² Fixing malfunction` Style ² How well the product looks and feels

` Design ² Integrating factor

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Differentiation

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` Services Differentiation (DICCRM ² follow the sequence)` Delivery ² Fedex

` Installation ² Durables, Tata Sky, DishTV

` Customer Training ² ERP, Software

` Consulting Services ² Insurance, Investment

` Repair ² Aquagaurd, Air Conditioners

` Miscellaneous - AMCs

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Differentiation

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` Personnel Differentiation (Airline, Banking, Restaurants)` Competence (4C2R)

` Courtesy

` Credibility

` Reliability

` Responsiveness

` Communication

` Image Differentiation (SAME)

` Symbol ² logo, type, object

`

Media ² Advertisements, Billboards (AMUL)` Atmosphere ² McDonalds, PVR Cinemas, ADLabs

` Events ² Only Vimal (Reliance and Asiad?)

` Identity ² Logos, brand name, symbols, atmospheres etc

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Differentiation costs

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` Trade Offs (IPMAP)` Product modification costs

` Manufacturing Costs

` Administrative costs

` Inventory costs

` Promotion costs

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 Thank you

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