unit 3.2 targeting

8/2/2019 Unit 3.2 Targeting

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Ankur Bhatnagarwww.managementpedia.tk

Unit - III

Instructor


Topic:Targeting


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Market Targeting

Market segmentationreveals the firms

market segment

opportunities. The firmnow has to evaluatethe various segmentsand decide how many

and which ones totarget.


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Evaluating Market Segments

Selecting Target Market

We now look at how companies evaluate and selecttarget segments. The target marketing process involves

the following steps

STEP 1

STEP 2

Market targetingprocedure


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Step 1 :Evaluating Market Segments

In evaluating different market segments a firmmust look at following steps:

Segment size and growth

Segment structural attractiveness

Company objectives & resources


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Step 2: Selecting Target Market

After evaluating different segments, the

company must nowdecide which and how many segments to

serve?This is the problem of targetmarket selection.

A target market consist of a setof buyers who shares commonneeds or characteristics that the

company decides to serve.


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Limited coverage market targeting

Full coverage market targeting

Additional considerations

TAR

GETING

STRA

TEGIE

S


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I. Limited coverage market targeting

A

B

C

D

A

B

C

D

When only one or few segments are selected as markettargets it is called limited coverage market

segmentation.


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Limited coverage market

targeting can take any to thefollowing terms:

1. Single-segment concentration2. Selective specialization

3. Product specialization

4. Market specialization


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1. Single-segment concentration

Market 1 Market 2 Market 3

Product 1

Product 2

Product 3

Zodiac and Arrow shirts


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2. Selective specialization


Product 1

Product 2

Product 3

Each segment promises to be a moneymaker.This strategy diversify firms risk.


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3. Product specializationMarket 1 Market 2 Market 3

Product 1

Product 2

Product 3

A microscope manufacturer that sells microscope to

university laboratories, govt. laboratories and commercial laboratories.


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4. Market specialization


Product 1

Product 2

Product 3

Firm that sells an assortment of products only to university laboratories.


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II. Full coverage market targeting


Product 1

Product 2

Product 3

Microsoft software, Coca Cola, PepsiCo


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III. Additional Consideration

Two other considerations in evaluatingand selecting segments are :

i. Ethical choice of market targets

ii. Segment by segment invasion plans


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Ankur Bhatnagarwww.managementstudies.tk

References

Philip Kotlar, Keller, Kohsy and Jha, Principles of

Marketing Management, Pearson Publication

Dr. K. Karunakaran, Marketing Management, HimalayaPublication

Journal of Marketing Management

Magazine- 4Ps of Business & Economy

unit 3.2 targeting

Documents