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Targeting & Segmentation
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 products
key distinctive benefits in that market
Market Segment
A large identifiable group within a
market with similar wants, purchasing
power, geographical locations, buying
attitudes
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
When the marketing mix is altered to
suit the local conditions
eg. Giving a higher/ lower discount
than whats prevailing in the rest of the
markets
or implementing a different promotion
scheme
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
Geographic territory demarcations
Demographic  age, family size,
sex, income,education, religion, etc.
Psychographic 
lifestyle,personality,values
Behavioral  knowledge,attitudes,usage
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
Loyalty status 
diehards,shifters,switchers
Buyer Readiness  unaware  aware 
informed  interested  desire 
intention to buy
Attitude  enthusiastic, positive,
indifferent, negative, hostile
Criteria for segmentation
Measurable
Substantial
Accessible
Differentiable
Actionable
Market Targeting
Single segment concentration
Selective specialisation
Product specialisation
Market specialisation
Full Market coverage -
undifferentiated marketing
differentiated 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
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

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Targeting & Segmentation Targeting & Segmentation.ppt

  • 2. 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 products key distinctive benefits in that market
  • 3. Market Segment A large identifiable group within a market with similar wants, purchasing power, geographical locations, buying attitudes
  • 4. 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
  • 5. Local Marketing When the marketing mix is altered to suit the local conditions eg. Giving a higher/ lower discount than whats prevailing in the rest of the markets or implementing a different promotion scheme
  • 6. Individualised Marketing When the firm deals with each customer on a one to one basis When products are customised for the customer
  • 7. Bases for Segmentation Geographic territory demarcations Demographic age, family size, sex, income,education, religion, etc. Psychographic lifestyle,personality,values Behavioral knowledge,attitudes,usage
  • 8. 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
  • 9. Loyalty status diehards,shifters,switchers Buyer Readiness unaware aware informed interested desire intention to buy Attitude enthusiastic, positive, indifferent, negative, hostile
  • 11. Market Targeting Single segment concentration Selective specialisation Product specialisation Market specialisation Full Market coverage - undifferentiated marketing differentiated marketing
  • 12. 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
  • 13. 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