Target market - Unitedworld School of Business

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Target market - Unitedworld School of Business

  1. 1. Target MarketMarket:Market: people or institutions with sufficientpurchasing power, authority, and willingness to buyA target market is a group of people towardwhom a firm markets its goods, services, or ideaswith a strategy designed to satisfy their specificneeds and preferences.
  2. 2. Types of Markets:Consumer Markets:Consumer Markets:Goods or services purchased by an ultimateconsumer for personal use. They sell the products tomass.Eg. Soft drinks,Cosmetics etc.
  3. 3. Business Markets:Business Markets:Goods or services purchased for use either directly orindirectly in the production of other goods andservices for resale.E.g.. Heavy equipments,building etc.
  4. 4. Global markets: When the company expand theirbusiness and placed their products to internationalmarket.Non-profit and Governmental market: eg. NGO
  5. 5. The Role of Market SegmentationMarket Segmentation:Market Segmentation: division of the total marketinto smaller, relatively homogeneous groupsNo single marketing mix can satisfy everyone.Therefore, separate marketing mixes should be usedfor different market segments.
  6. 6. Step 1. Market SegmentationBases for Segmenting Consumer MarketsGeographicDemographicAge, gender, family sizeand life cycle,or incomePsychographicSocial class, lifestyle,or personalityBehaviouralOccasions, benefitssought, user status,usage rate, loyaltyNations, states,regions or cities
  7. 7. The Market Segmentation ProcessStage I: Identify Segmentation ProcessStage II: Develop Relevant ProfileStage III: Forecast Market PotentialStage IV: Forecast Market ShareStage V: Select Specific Segment
  8. 8. Advantages of Segmentation:Increase in competitivenessMarket expansionCustomer retention Have better communication
  9. 9. • Size, purchasing power, profilesof segments can be measured.• Segments can be effectivelyreached and served.• Segments are large orprofitable enough to serve.MeasurableMeasurableAccessibleAccessibleSubstantialSubstantialDifferentialDifferentialActionableActionable• Segments must responddifferently to different marketingmix elements & programs.• Effective programs can bedesigned to attract and servethe segments.Requirements of effective marketsegmentation:
  10. 10. Steps in Segmentation, Targeting, andPositioning :1. Identify Basesfor Segmenting the Market2. Develop Profilesof Resulting Segments3. Develop Selection Criteria4. Select TargetSegment(s)5. Develop Positioningfor Each Target Segment6. Develop MarketingMix for Each Target Segment MarketPositioningMarketTargetingMarket Segmentation
  11. 11. Levels of Market Segmentation:Mass MarketingSame product to all consumers(no segmentation)Mass MarketingSame product to all consumers(no segmentation)Segment MarketingDifferent products to one or more segments(some segmentation)Segment MarketingDifferent products to one or more segments(some segmentation)MicromarketingProducts to suit the tastes of individuals and locations(complete segmentation)MicromarketingProducts to suit the tastes of individuals and locations(complete segmentation)Niche MarketingDifferent products to subgroups within segments(more segmentation)Niche MarketingDifferent products to subgroups within segments(more segmentation)Local MarketingTailoring brands/ promotionsto local customer groupsIndividual MarketingTailoring products/ programsto individual customers
  12. 12. Step 1. Market SegmentationBases for Segmenting Business MarketsBasesfor SegmentingBusinessMarketsBasesfor SegmentingBusinessMarketsDemographicsPersonalCharacteristicsSituationalFactorsOperatingCharacteristicsPurchasingApproaches
  13. 13. Segmenting BusinessMarketsSegmentation by customer size or geographic locationFour segments of business customersProgrammed buyersRelationship buyersTransaction buyersBargain hunters
  14. 14. Market TargetingFocusing marketing decisions on a veryspecific group of people an organizationwants to reach.Identifying and developing products/services for a specific market.
  15. 15. Evaluating Market Segments(developing selection criteria)Segment Size and Growth Analyze sales, growthrates and expected profitability for various segments.Segment Structural Attractiveness effects of:Competitors, Availability of Substitute Products and,Company Objectives and ResourcesCompany skills & resources relative to the segment(s).Look for Competitive Advantages.
  16. 16. Strategies for ReachingTarget Markets
  17. 17. Segment 1Segment 1Segment 2Segment 2Segment 3Segment 3Segment 1Segment 1Segment 2Segment 2Segment 3Segment 3CompanyMarketingMixCompanyMarketingMixCompanyMarketingMixCompanyMarketingMixCompanyMarketing Mix 1CompanyMarketing Mix 1CompanyMarketing Mix 2CompanyMarketing Mix 2CompanyMarketing Mix 3CompanyMarketing Mix 3MarketMarketA. Undifferentiated MarketingB. Differentiated MarketingC. Concentrated Marketing
  18. 18. when a firm produces only one product or productline and promotes it to all customers with a singlemarketing mixSometimes called mass marketingMuch more common in the pastUndifferentiatedMarketing
  19. 19. when a firm produces numerous products andpromotes them with a different marketing mixdesigned to satisfy smaller segmentsTends to raise costsFirms may be forced to practice differentiatedmarketing to remain competitiveDifferentiatedMarketing
  20. 20. when a firm commits all of its marketing resources toserve a single market segmentAttractive to small firms with limited resources and tofirms offering highly specialized goods and servicesConcentratedMarketing
  21. 21. Step 2. Market TargetingChoosing a Market-Coverage StrategyCompanyResourcesProductVariabilityProduct’s Life-CycleStageMarketVariabilityCompetitors’Marketing Strategies
  22. 22. Most attractive target marketsA firm must evaluate the various segments ,decide howmany &which ones to target:Single segment concentration.Selective specialization.Product specialization.Market specialization.Full market coverage.
  23. 23. POSITIONING Positioning is the development of a service and amarketing mix to occupy a specific place in the minds ofcustomers within target markets.Positioning is what the customer believes about yourproduct’s value, features, and benefits; it is a comparisonto the other available alternatives offered by thecompetition. These beliefs tend to based on customerexperiences and evidence , rather than awareness createdby advertising or promotion.Marketers manage product positioning by focusing theirmarketing activities on a positioning strategy. Pricing,promotion, channels of distribution, and advertising allare geared to maximize the chosen positioning strategy.
  24. 24. 7POSITIONINGSTRATEGIES
  25. 25. 1. Positioning by products attributes andbenefits: Associating a product with an attributes, aproduct feature or a consumer feature.Sometimes a product can be positioned interms of two or more attributes simultaneously.The price and quality dimension is commonlyused for positioning the products.Like, Colgate offers benefit of preventing cavityand fresh breath.Ariel offers a specific benefit of cleaning even thedirtiest of clothes because of the micro cleaning
  26. 26. 2.Positioning by price/ quality:One way they do it is with ads that reflect theimage of a high_ quality brand where cost, while nnot irrelevant, is considered secondary to thequality benefits derived from using the brand.The Wheel detergent or Rin soap which alwaysfocuses on the value addition and price.3.Positioning by use or application:Another way is to communicate a specificimage or position for a brand is to associate it witha specific use or application.Surf Excel is positioned as stain remover ‘Surf
  27. 27. 4. Positioning by product class:Often the competition for a particular productcomes from outside the product class. The productis positioned against others that, while not exactlythe same, provide the same class of benefits.Dove is positioned as a moisturizer, not a soap.5. Positioning by product user:Positioning a product by associating it with aparticular user or group of users is yet anotherapproachMotorola Mobile Ad , Facebook.
  28. 28. 6. Positioning by competitor:Competitors may be as important topositioning strategy as a firm’s own productor services. This approach is similar topositioning by product class, although in thiscase the competition is within the sameproduct category.Moov compares itself with Iodex.7.Positioning by cultural symbols:An additional positioning strategy where Ithe cultural symbols are used to differentiatethe brands.Humara Bajaj, Tata Tea symbols hassuccessfully differentiated the product
  29. 29. Steps to Choosing andImplementinga Positioning StrategyStep 1. Identifying a set of possible competitiveadvantages: Competitive Differentiation.Step 2. Selecting the right competitiveadvantage.Step 3. Effectively communicating anddelivering the chosen position to the market.
  30. 30. Thank You

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