Target market - Unitedworld School of Business

2. Target Market
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.

3. Types of Markets:
Consumer Markets:Consumer Markets:
Goods or services purchased by an ultimate
consumer for personal use. They sell the products to
mass.
Eg. Soft drinks,
Cosmetics etc.

4. Business Markets:Business Markets:
Goods or services purchased for use either directly or
indirectly in the production of other goods and
services for resale.
E.g.. Heavy equipments,
building etc.

5. Global markets: When the company expand their
business and placed their products to international
market.
Non-profit and Governmental market: eg. NGO

6. The Role of Market Segmentation
Market Segmentation:Market Segmentation: division of the total market
into smaller, relatively homogeneous groups
No single marketing mix can satisfy everyone.
Therefore, separate marketing mixes should be used
for different market segments.

7. Step 1. Market Segmentation
Bases for Segmenting Consumer Markets
Geographic
Demographic
Age, gender, family size
and life cycle,
or income
Psychographic
Social class, lifestyle,
or personality
Behavioural
Occasions, benefits
sought, user status,
usage rate, loyalty
Nations, states,
regions or cities

8. The Market Segmentation Process
Stage I: Identify Segmentation Process
Stage II: Develop Relevant Profile
Stage III: Forecast Market Potential
Stage IV: Forecast Market Share
Stage V: Select Specific Segment

9. Advantages of Segmentation:
Increase in competitiveness
Market expansion
Customer retention
 Have better communication

10. • Size, purchasing power, profiles
of segments can be measured.
• Segments can be effectively
reached and served.
• Segments are large or
profitable enough to serve.
MeasurableMeasurable
AccessibleAccessible
SubstantialSubstantial
DifferentialDifferential
ActionableActionable
• Segments must respond
differently to different marketing
mix elements & programs.
• Effective programs can be
designed to attract and serve
the segments.
Requirements of effective market
segmentation:

11. Steps in Segmentation, Targeting, and
Positioning :
1. Identify Bases
for Segmenting the Market
2. Develop Profiles
of Resulting Segments
3. Develop Selection Criteria
4. Select Target
Segment(s)
5. Develop Positioning
for Each Target Segment
6. Develop Marketing
Mix for Each Target Segment Market
Positioning
Market
Targeting
Market Segmentation

12. Levels of Market Segmentation:
Mass Marketing
Same product to all consumers
(no segmentation)
Mass Marketing
Same product to all consumers
(no segmentation)
Segment Marketing
Different products to one or more segments
(some segmentation)
Segment Marketing
Different products to one or more segments
(some segmentation)
Micromarketing
Products to suit the tastes of individuals and locations
(complete segmentation)
Micromarketing
Products to suit the tastes of individuals and locations
(complete segmentation)
Niche Marketing
Different products to subgroups within segments
(more segmentation)
Niche Marketing
Different products to subgroups within segments
(more segmentation)
Local Marketing
Tailoring brands/ promotions
to local customer groups
Individual Marketing
Tailoring products/ programs
to individual customers

13. Step 1. Market Segmentation
Bases for Segmenting Business Markets
Bases
for Segmenting
Business
Markets
Bases
for Segmenting
Business
Markets
DemographicsPersonal
Characteristics
Situational
Factors
Operating
Characteristics
Purchasing
Approaches

14. Segmenting Business
Markets
Segmentation by customer size or geographic location
Four segments of business customers
Programmed buyers
Relationship buyers
Transaction buyers
Bargain hunters

15. 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.

16. Evaluating Market Segments
(developing selection criteria)
Segment Size and Growth Analyze sales, growth
rates and expected profitability for various segments.
Segment Structural Attractiveness effects of:
Competitors, Availability of Substitute Products and,
Company Objectives and Resources
Company skills & resources relative to the segment(s).
Look for Competitive Advantages.

17. Strategies for Reaching
Target Markets

18. Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Company
Marketing
Mix
Company
Marketing
Mix
Company
Marketing
Mix
Company
Marketing
Mix
Company
Marketing Mix 1
Company
Marketing Mix 1
Company
Marketing Mix 2
Company
Marketing Mix 2
Company
Marketing Mix 3
Company
Marketing Mix 3
MarketMarket
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing

19. 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
Undifferentiated
Marketing

20. 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
Differentiated
Marketing

21. 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
Concentrated
Marketing

22. Step 2. Market Targeting
Choosing a Market-Coverage Strategy
Company
Resources
Product
Variability
Product’s Life-Cycle
Stage
Market
Variability
Competitors’
Marketing Strategies

23. Most attractive target markets
A firm must evaluate the various segments ,decide how
many &which ones to target:
Single segment concentration.
Selective specialization.
Product specialization.
Market specialization.
Full market coverage.

24. POSITIONING
 Positioning is the development of a service and a
marketing mix to occupy a specific place in the minds of
customers within target markets.
Positioning is what the customer believes about your
product’s value, features, and benefits; it is a comparison
to the other available alternatives offered by the
competition. These beliefs tend to based on customer
experiences and evidence , rather than awareness created
by advertising or promotion.
Marketers manage product positioning by focusing their
marketing activities on a positioning strategy. Pricing,
promotion, channels of distribution, and advertising all
are geared to maximize the chosen positioning strategy.

25. 7
POSITIONING
STRATEGIES

26. 1. Positioning by products attributes and
benefits:
 Associating a product with an attributes, a product
feature or a consumer feature. Sometimes a
product can be positioned in terms of two or more
attributes simultaneously. The price and quality
dimension is 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.

27. 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 the quality
benefits derived from using the brand.
The Wheel detergent or Rin soap which always
focuses on the value addition 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!’

28. 4. Positioning by product class:
Often the competition for a particular product
comes from outside the 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.

29. 6. Positioning by competitor:
Competitors may be as important to positioning
strategy as a firm’s own product or services. This
approach is similar to positioning by product class,
although in this case the competition is within the same
product category.
Moov compares itself with Iodex.
7.Positioning by cultural symbols:
An additional positioning strategy where I the cultural
symbols are used to differentiate the brands.
Humara Bajaj, Tata Tea symbols has successfully
differentiated the product it represents from
competitors.

30. Steps to Choosing and
Implementing
a Positioning Strategy
Step 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.

31. Campus Overview
907/A Uvarshad,
Gandhinagar
Highway, Ahmedabad –
382422.
Ahmedabad Kolkata
Infinity Benchmark,
10th
Floor, Plot G1,
Block EP & GP,
Sector V, Salt-Lake,
Kolkata – 700091.
Mumbai
Goldline Business Centre
Linkway Estate,
Next to Chincholi Fire
Brigade, Malad (West),
Mumbai – 400 064.

32. Thank You