single-segment concentration in market with ROLEX watch Example, Risks, and explanation of super segment

1. JAWAHARLAL NEHRU TECHNOLOGICAL
UNIVERSITY KAKINADA
SCHOOL OF MANAGEMENT STUDIES
Marketing Management
Single-Segment Concentration
Presented by:
Keerthi Pinipe
18021E00

2. Market Targeting
• Once the firm has identified its market segment
opportunities it has to decide how many and which ones
to target
• Markets are increasingly combining several in an effort
to identify smaller, better defined target groups.

3. Single-segment Concentration
P1
P3
P2
M3M2M1
In this marketer prefers to go for single segment

4. Rolex watches
• Brand Rolex is focused primarily on the wealthy
consumers.
• Rolex designers are well aware of their target audience and
try to fully satisfy all the desires of fans of the brand.

5. Advantages
• The firm gains a strong knowledge of the segments needs
and achieves a strong market presence.
• The firm enjoys operating economies through
specializing its production, distribution and promotion.
• Firm can gain high returns on its investments.

6. Risks
• A particular market may turn sour or a competitor may invade
the segment.
Example :
when digital technology took off, Polaroid's earnings fell
sharply.
• A small change in segment needs, wants, preferences can
create a problem.

7. Supersegment
• A supersegment is a set of segments sharing some
exploitable similarities.
Example: Symphony orchestra target people who have broad
cultural interests, rather than only those who regularly attend
concerts

8. References:
• “Marketing Management” by Phillip Kotler & Kevin Lane
Keller, 12e.