The document discusses patterns of target market selection. It identifies five patterns: single segment concentration, selective segment specialization, market specialization, product specialization, and full coverage. For each pattern it provides examples of companies that use each approach and describes the basic strategy. The key factors to consider when selecting target markets are the segment's size, growth, profitability, and compatibility with company objectives and resources. The ultimate goal is to identify those market segments that will form the target market for a company's products or services.

1. Market Selection
Dr. Pooja
Assistant Professor
Dept. of Commerce
AMPGC, BHU
Market Targeting
Patterns of Target Market Selection

2. Market Targeting
 It is essential for the organizations or marketers to identify the set of
people whom they want to target?. Marketers must understand the needs
and expectations of the individuals to create its target market. The target
audience must have similar needs, interests and expectations. Similar
products and brands should entice the individuals comprising the target
market. Same taglines and advertisements attract the attention of the target
audience and prompt them to buy.

3.  To select a target market, it is essential for the organizations to study the following
factors:
1. Understand the lifestyle of the consumers
2. Age group of the individuals
3. Income of the consumers
4. Spending capacity of the consumers
5. Education and Profession of the people
6. Gender
7. Mentality and thought process of the consumers
8. Social Status
9. Kind of environment in which individuals are exposed

4.  The process of manipulating the marketing mix in terms of differentiating products,
methods of communication and other marketing variables is known as market targeting or
target marketing. Market targeting should not be confused as synonymous to market
segmentation. Through segmentation, a firm divides the market into many segments. But
all of them need not form the target market. The target market signifies only those
segments that it wants to adopt as its markets. Thus the target markets are selected out
of the segments formed.
 In evaluating market segments, any company must look at 2 factors:
1. The segment’s overall structural attractiveness in terms of size, growth, profitability,
scale economics and low risk
2. Company’s objectives and resources

5.  Once a marketer has evaluated the different segments for their size,
growth, and attractiveness, and found that they are compatible with the
company’s objectives and resources, the obvious step is to go far selecting
the market segments. There are five patterns of target market selection,
which was first put forward by D F Abell.

6. Five
Patterns
of
Target
Market
Selection
Single Segment Concentration
Selective Segment Specialisation
Market Specialisation
Product Specialisation
Full Coverage

7.  In this case, the marketer prefers to go for single segment. In our
hypothetical example, the company X uses this strategy when it produces a
typical product for a single type of market like plasma TV.
 In real life, companies like Allahabad Law Agency (only law books) and
BPB publications (only Computer books) are good examples.
 The company may adopt this strategy if it has strong market position,
greater knowledge about segment-specific-needs, specified reputation and
probable leadership position.

8.  This is known as multistage 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. There may be little or no synergy among the segments,
but this strategy has the advantage of diversifying the firm’s risk.
 In example, if the company X produces plasma TV as well as Walkman, the two different
types of products obviously for two different types of markets, then it can be cited as an
example of Selective Segment Specialisation strategy. Bata shoes were mostly in the popular
segment until beginning of 1990s. Then, it turned itself into premium segment while still
retaining the appeal of popular segment. The taking of select segments of shoe market could
not help Bata to gain full control of market. After 1995, it has come back again to the popular
segment.

9.  Here the company takes up a particular market segment for supplying
all relevant products to the target group. In our example, the company X
can implement Market Specialisation 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. Upkar Publications Pvt. Ltd. publishes and sells books
for the students and job-hunters that include competition books (CAT, IIT-
JEE, IAS), general knowledge books and personality development books.

10.  Product specialisation occurs when a company sells certain products to
several different types of potential customers. In our example, if the
company X produces only a particular type of gizmo like toaster that is
consumed by all type of people, they we can say that the company uses
Product Specialisation strategy.
 Product specialisation promises strong recognition of customer within
the product areas. Super Precision Components supply small nuts and
screws for use in military, industry and daily use.

11.  The company attempts to serve all customer groups with all the products they might need.
Only very large firms can undertake a full market coverage strategy that can be done in 2 ways:
i. Undifferentiated marketing or convergence:
 The company ignores market segment differences and goes after the whole market with
one market offer. It focuses on a basic buyer need rather than on differences among buyers.
ii. Differentiated marketing or divergence:
 The company operates in several market segments and designs different programmes for
each segment. It creates more total sales than the former. But the following costs would be
higher:
a) Product modification cost
b) Manufacturing cost
c) Administrative cost
d) Inventory cost
e) Promotion cost