These are the targets that the marketing department wants to achieve.
These objectives should be in-line with the firm’s overall objectives.
Marketing guru Philip Kotler states, “the objective of marketing is to create customer satisfaction in a profitable way”.
These targets can :
provide a sense of purpose.
allow progress to be monitored.
assist in the planning and development of market strategies.
7b. Marketing Objectives Marketing Objectives Include market development new product development product innovation high market standing increase market share market leadership product positioning consumer satisfaction diversification
7c. Marketing Objectives Constraints Marketing Objectives Constraints competitors state of the economy political environment legal environment finance costs of production size and status of the firm social issues time lags
The second type of qualitative market research is in-depth interviews.
involve an interviewer and a customer having a one-on-one interview to find out more about the customer’s personal situation and opinions.
can be conducted face-to-face or over the phone.
these interviews can also include a range of non-quantifiable information, which prove to be difficult to analyze.
Advantages Disadvantages better exploring the motivators and the de-motivators of customers information used does not represent the whole population can be rich in depth can be time consuming can be inexpensive need interview expertise respondents not under any pressure interviewer can be bias
Once markets have been segments, the next stage is targeting.
T argeting refers to :
the market segment that a business wishes to sell to.
there are three main targeting strategies that a business can use:
1. niche marketing
2. Mass marketing (undifferentiated marketing)
3. Mass marketing (differentiated marketing)
Niche Marketing :
Also know as concentrated marketing.
targets a very specific and well-defined market segment.
Can you name some of these well-defined market segments?
10b. Targeting Advantages of Niche Marketing Disadvantage of Niche Marketing better marketing focus very small markets less competition small market size = no economies of scale become highly specialized highly successful markets may attract new competition
also know as mass marketing or market aggregation.
this strategy ignores targeting individual market segments.
a large number of different market segments are targeted to maximize sales volume.
Advantages Disadvantages huge economies of scales high entry barriers no tailed marketing mixes fierce competition caters to larger markets = larger profits lack of focus mass marketing can be wasteful