This document discusses different strategies for reaching target markets, including undifferentiated marketing, differentiated marketing, concentrated marketing, and micromarketing. It provides details on each strategy and examples of companies that use them. Differentiated marketing involves producing numerous products with different marketing mixes to satisfy smaller segments. Concentrated marketing commits all resources to serving a single segment. Micromarketing allows very precise targeting at levels like ZIP code or household. There is no single best strategy, as the optimal choice depends on company resources, product uniqueness, life cycle stage, and competitors.

1. Welcome to
Market Targeting
Rina Suprina, M.Hum, M.SiPar
Ivan Prasetya, M.Par

2. How do we reach
Target Market?

3. Strategies for Reaching
Target Markets
Undifferentiated
Marketing
Differentiated
Marketing
Concentrated
Marketing
Micromarketing

4. Okay, Let’s see what those
strategies really mean!

5. Undifferentiated marketing:
when a firm produces only one product or product line
and promotes it to all customers with a single marketing
mix
• Sometimes called mass marketing
• Much more common in the past
8-5
Strategies for Reaching
Target Markets

6. Differentiated marketing:
when a firm produces numerous products and promotes
them with a different marketing mix designed to satisfy
smaller segments
• Tends to raise costs
• Firms may be forced to practice differentiated
marketing to remain competitive
8-6
Strategies for Reaching
Target Markets

7. Procter and Gamble (P&G) is one
of many companies that Practicing
Differentiated Marketing.
8-7
Differentiated Marketing

8. 8-8
Besides P&G,
Lunchables also
using a
Differentiated
Marketing
Lunchables

9. Concentrated marketing (niche marketing):
when a firm commits all of its marketing resources to
serve a single market segment
• Attractive to small firms with limited resources and
to firms offering highly specialized goods and
services
8-9
Strategies for Reaching
Target Markets

10. Micromarketing:
Involves targeting potential customers at a very basic
level, such as by ZIP code, specific occupation, lifestyle,
or individual household
• The Internet may allow marketers to make
micromarketing even more effective
• GeneSolutions targeting a specific occupation
8-10
Strategies for Reaching
Target Markets

11. Then, what is
the next step?

12. • No single, best choice strategy
suits all firms
• Determinants of a market-specific
strategy:
• Company resources
• Product homogeneity
• Stage in the product life-cycle
• Competitors’ strategy
8-12
Selecting and Executing
a Strategy

13. 8-13
Hypotical Competitive
Positioning Map for
Selected Retailers