Target Market Presentation - Unitedworld School of Business

7/28/2019 Target Market Presentation - Unitedworld School of Business

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Target Market

Market: people or institutions with sufficient

purchasing power, authority, and willingness to buy

A target market is a group of people toward whom

a firm markets its goods, services, or ideas with a

strategy designed to satisfy their specific needs

and preferences.


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Types of Markets:

Consumer Markets: Goods or services purchased by an ultimate consumerfor personal use. They sell the products to mass.

Eg. Soft drinks,Cosmetics etc.


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Business Markets: Goods or services purchased for use either directly orindirectly in the production of other goods and

services for resale.

E.g.. Heavy equipments,building etc.


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Global markets: When the company expand theirbusiness and placed their products to internationalmarket.

Non-profit and Governmental market: eg. NGO


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The Role of Market Segmentation

Market Segmentation: division of the total marketinto smaller, relatively homogeneous groups

No single marketing mix can satisfy everyone.Therefore, separate marketing mixes should be usedfor different market segments.


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Step 1. Market Segmentation Bases for Segmenting Consumer Markets

Geographic

DemographicAge, gender, family sizeand life cycle,

or income

PsychographicSocial class, lifestyle,

or personality

BehaviouralOccasions, benefitssought, user status,

usage rate, loyalty

Nations, states,regions or cities


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The Market Segmentation ProcessStage I: Identify Segmentation Process

Stage II: Develop Relevant Profile

Stage III: Forecast Market Potential

Stage IV: Forecast Market Share

Stage V: Select Specific Segment


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Advantages of Segmentation:Increase in competitiveness

Market expansionCustomer retentionHave better communication


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Size, purchasing power, profilesof segments can be measured.

Segments can be effectivelyreached and served.

Segments are large or profitable enough to serve.

Measurable

Accessible

Substantial

Differential

Actionable

Segments must responddifferently to different marketingmix elements & programs.

Effective programs can bedesigned to attract and serve

the segments.

Requirements of effective marketsegmentation:


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Steps in Segmentation, Targeting, andPositioning :

1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Selection Criteria

4. Select TargetSegment(s)

5. Develop Positioningfor Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation


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Levels of Market Segmentation:

Mass MarketingSam e prod uc t to a ll consu m ers

(no segm entat ion)

Segment MarketingDifferen t p ro duc ts to o ne or m ore segments

(som e segmenta t ion)

MicromarketingProduc ts to su i t the tas tes o f ind iv idu a ls and loc a tions

(com ple te s egmenta tion)

Niche MarketingDifferen t p rodu c ts to sub grou ps w i th in segm ents

(m ore segm entat ion)

Local Marketing

Tailo r ing b rands / p rom ot ions to loca l cus to m er g roup s

Individual Marketing

Tailo r ing p roduc t s / p rograms to ind iv idua l cus to mers


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Step 1. Market Segmentation Bases for Segmenting Business Markets

Basesfor Segmenting

BusinessMarkets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches


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Segmenting Business MarketsSegmentation by customer size or geographic location

Four segments of business customers

Programmed buyers

Relationship buyers

Transaction buyers

Bargain hunters


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Market Targeting

Focusing marketing decisions on a very

specific group of people an organization wants to reach.Identifying and developing products/services for a specific market.


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Evaluating Market Segments(developing selection criteria)

Segment Size and Growth Analyze sales, growth ratesand expected profitability for various segments.

Segment Structural Attractiveness effects of:Competitors, Availability of Substitute Products and,

Company Objectives and ResourcesCompany skills & resources relative to the segment(s).Look for Competitive Advantages.


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Strategies for ReachingTarget Markets


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Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1



Market

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing


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when a firm produces only one product or productline and promotes it to all customers with a singlemarketing mix

Sometimes called mass marketingMuch more common in the past

UndifferentiatedMarketing


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when a firm produces numerous products andpromotes them with a different marketing mixdesigned to satisfy smaller segments

Tends to raise costsFirms may be forced to practice differentiatedmarketing to remain competitive

Differentiated

Marketing


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when a firm commits all of its marketing resources to

serve a single market segment Attractive to small firms with limited resources and tofirms offering highly specialized goods and services

ConcentratedMarketing


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Step 2. Market TargetingChoosing a Market-Coverage Strategy

CompanyResources

ProductVariability

Products Life -CycleStage

MarketVariability

Competitors Marketing Strategies


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Most attractive target marketsA firm must evaluate the various segments ,decide howmany &which ones to target:

Single segment concentration.Selective specialization.Product specialization.

Market specialization.Full market coverage.


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POSITIONING Positioning is the development of a service and amarketing mix to occupy a specific place in the minds of customers within target markets.

Positioning is what the customer believes about yourproducts value, features, and benefits; it is a comparisonto the other available alternatives offered by thecompetition. These beliefs tend to based on customerexperiences and evidence , rather than awareness createdby advertising or promotion.Marketers manage product positioning by focusing theirmarketing activities on a positioning strategy. Pricing,promotion, channels of distribution, and advertising allare geared to maximize the chosen positioning strategy.


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7POSITIONING

STRATEGIES


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1. Positioning by products attributes and benefits:Associating a product with an attributes, a product feature or aconsumer feature. Sometimes a product can be positioned in terms of two or more attributes simultaneously. The price and quality dimensionis commonly used for positioning the products.

Like, Colgate offers benefit of preventing cavity and fresh breath.

Ariel offers a specific benefit of cleaning even the dirtiest of clothes because of the micro cleaning system in the product.


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2.Positioning by price/ quality:One way they do it is with ads that reflect the image of a high_ quality

brand where cost, while n not irrelevant, is considered secondary to thequality benefits derived from using the brand.

The Wheel detergent or Rin soap which always focuses on the valueaddition and price.

3.Positioning by use or application:Another way is to communicate a specific image or position for a

brand is to associate it with a specific use or application.

Surf Excel is positioned as stain remover Surf Excel hai na !


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4. Positioning by product class:Often the competition for a particular product comes from outsidethe product class. The product is positioned against others that,while not exactly the same, provide the same class of benefits.

Dove is positioned as a moisturizer, not a soap.

5. Positioning by product user:Positioning a product by associating it with a particular user or group of users is yet another approach

Motorola Mobile Ad , Facebook.


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6. Positioning by competitor:Competitors may be as important to positioning strategy as a firms own

product or services. This approach is similar to positioning by productclass, although in this case the competition is within the same productcategory.

Moov compares itself with Iodex.

7.Positioning by cultural symbols:An additional positioning strategy where I the cultural symbols are usedto differentiate the brands.

Humara Bajaj, Tata Tea symbols has successfully differentiated the

product it represents from competitors .


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Steps to Choosing and Implementing

a Positioning StrategyStep 1. Identifying a set of possible competitive advantages:

Competitive Differentiation.

Step 2. Selecting the right competitive advantage.

Step 3. Effectively communicating and delivering the chosen position to the market.


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Campus Overview

907/A Uvarshad,Gandhinagar Highway, Ahmedabad 382422.

Ahmedabad Kolkata

Infinity Benchmark,10 th Floor, Plot G1,Block EP & GP,Sector V, Salt-Lake,Kolkata 700091.

Mumbai

Goldline Business CentreLinkway Estate,

Next to Chincholi FireBrigade, Malad (West),Mumbai 400 064.


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Thank You

Target Market Presentation - Unitedworld School of Business

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