meaning of market selection different patterns for market selection examples for each pattern of selection

1. DIFFERENT PATTERNS FOR MARKET
SELECTION

2. GROUP MEMBERS
PARMINDER KAUR
PARWINDER KAUR
NANDINI SINGLA
MUSKAAN TANEJA
PARAS CHAUDHARY

3. Market selection
 Market Selection is the process of deciding which markets to invest in and
pursuing in order to maximise profit as well as customer satisfaction
 After identification of various segments, the marketer has to decide and
select upon the segment which he wants to cater and directs his market
efforts.
 The marketer would choose a segment that is viable and that he can cater
to effectively and efficiently.

4. Patterns for selection
 Single-segment concentration
 Product specialization
 Market specialization
 Multi-segment concentration
 Full market coverage
.

5. Single segment concentration

6. Single-Segment Concentration
 Meaning- It means a company selling a one product in single market
 Focuses on single market or product
 It usually chosen by small companies which have limited resources to avoid competition
EXAMPLE-
• Sports channels on TV
• Religious channels on TV
• Like -salt, sugar

7. Reasons of Single Segment
 The firm gains a strong knowledge of the segment’s needs
 Achieves a strong market presence
 The firm enjoys operating economics through specializing its Production ,
Distribution and Promotion
 If it capture segment leadership, the firm can earn a high return on its Investment.

8. Risk in single segment concentration
 A particular market segment can turn Sour or a Competitor
 EXAMPLE –
When digital camera technology took off, Polaroid’s ( trademark for camera that
produce instant photographs) earnings fell sharply. For these reason many
companies prefer to operate in more than one segment

9. Product specialisation
 It is a Strategy that a Company can use to target specific Customer Market Segments.
 Works for Companies that specialize in a high- quality product.
 Have the ability to customize it to fit the specific needs of different segments.
 Marketer deals with varying products in the same product line.

10. EXAMPLE:
If company X produces only a particular type of gizmo like toaster that is consumed by all type of
people, then we can say that the company uses product specialization.

11. ADVANTAGES DISADVANTAGES
1.Develop Specialization and Reputation in
the Product Line.
If product mature or dies, Marketer would
cease to exist.
2. Serve good Products to Customers. High Risk.
3. Enhance After-Sales Services. More Expensive to Operate.

12. Market specialisation
 Brand loyalty of existing customers in the segment.
 Attainable market share given promotional budget and competitors’ expenditures.
 Required market share to break even.
 Sales potential for the firm in the segment.
 Expected profit margins in the segment.

13. EXAMPLE:
 The company X can Implement market specialization strategy by producing all sorts
of home appliances like TV, washing machine, refrigerator and micro oven for middle
class people.
 Here the chosen segment is the middle class and the firm specializes in that market
only.

14.  The following are some examples of aspects that should be considered when evaluating the
attractiveness of a market segment:
Size of the segment.
Growth rate of the segment.
Competition in the segment.

15. Multi segment concentration
 It is also known as Selective Segment Specialization or Differentiated Strategy.
 In this type of approach, the Marketer caters to two or few Segments with Different
Marketing Mixes.
 This is known as Multi- Stage Coverage because different Segments are sought to be
captured by the Company.
 The Company selects a number of segments each of which is Attractive, Potential and
Appropriate.

16. EXAMPLE:
If company X produces Plasma TV as well as Walkman, the two different types of products for two
different types of markets, then it can be cited as an example of Multi-Segment Concentration.

17. ADVANTAGES DISADVANTAGES
1.Diversifying the firm and risk. Complex and Dynamic Environment.
2.Economies of scale. High Cost.
3.Expand Business Operations. Identify Changing Needs.

18. Full market coverage
 The firm attempts to cater all customer groups.
l
 They try to serve all the customers with all the products they might need
 This can not be done by small scale industries as it requires huge amount of investment , so
only large industries can cater full market for example- coca cola
 A full market coverage could assume
three forms
 Undifferentiated marketing
 Differentiated marketing
 concentrated marketing

19. Undifferentiated marketing
 the firm ignores market-segment differences and goes after the whole market with one
market offer.
 Focusing on a basic buyer need, it designs a product and a marketing program that will
appeal to the broadest number of buyers.
 EXAMPLE – FORD
When Henry Ford introduced the Ford Automobile, he offered one model to the market
with one color option, black. But now , Ford has grown into a great brand with many types of
vehicles and colors and they segment their cars and trucks to different markets, worldwide.

20. Differentiated marketing
 the firm operates in several market segments and designs different programs for each
segment.
 Differentiated marketing typically creates more total sales than does undifferentiated
marketing, but it also increases the cost of doing business.
EXAMPLE- HYUNDAI
Their primary consumer target is middle to upper income professionals who need
true value for their money and comfortable ride in city conditions their secondary
consumer target is college students who need style and speed

21. Concentrated marketing
 Concentrated Marketing is a strategy whereby a product is developed and marketed
for a very well defined and specific segment of the consumer population.
It is particularly effective for small companies with limited resources because it enables
the company to achieve a strong market position in the specific market segment
 EXAMPLE –
Lakme concentrates on female segment
Raymond concentrates on male segment