Market targeting strategies, Marketing Management

Assignment Help:

Targeting strategies: having segmented the market, the firm now has to choose its marketing strategies. There are three strategies to choose from:

1.       Standardization: in this strategy, the firm offers the same product to the different market segments. It uses the same communication pricing and distribution strategies. The classical example is of soft drink firms like coke and Pepsi, who retain the same flavour, advertising, packaging etc. across segments in the different geographical areas. The obvious advantage is the economics of scale which a firm gets in mass production and the marketing. Differentiation: this is just the opposite of the above mentioned strategy. Here the firm differentiates its products to suit the different segments needs and expansions. Typically, one has the example of an airline that differentiates its products in the three classes - the first class, business class and economy class. Each of these classes is targeted at a specific segment whose needs are different from the other.

2.       Focus: this is a combination of standardization and the differentiation. Here the core strategy remains the same but differentiation is made to take into the account specific customer group requirements. For the example, the Maruti 800 to 1000 has some basis features and offers specific benefits to its buyers. However, a buyer who is looking for more features like safety belts, air conditioning, power steering and music systems can get the same at an additional price. In this way Maruti is able to focus its entire strategy on both economy and premium segments. This strategy helps the firm enjoy the economics of sales as well as higher market penetration, and consequently a higher market share. Therefore, the marketer has to choose the appropriate strategy in order to achieve higher market penetration in each of his market segments. 


Related Discussions:- Market targeting strategies

What is the means to beat the market and stocks , 1. You are provided with ...

1. You are provided with a file labeled "MULTIBETA11DAT," with monthly data running from January of 2006 through June of 2011. Use the data to estimate a four-variable model (by us

Assertive confrontation message to an employee, Question (a) When deli...

Question (a) When delivering an assertive confrontation message to an employee, you have to be careful not to become defensive or reactive if the employee becomes argumentati

Determine in brief about marketing communications, Determine in brief about...

Determine in brief about Marketing communications Marketing communications are a management process through which an organisation engages with its numerous audiences. By under

Principle of efficient clint agency relationship, Q. Principle of efficient...

Q. Principle of efficient Clint Agency Relationship? Principle of efficient Clint Agency Relationship:-following points improve the CAR effective. 1) Not to advertise for Im

Primary difference between selling and marketing concept, Question: (a)...

Question: (a) Discuss the primary difference between selling and marketing concept? (b) Suppose you are a marketer and about to introduce a new line of microwaveable snacks

Entrepreneurship, 1) What are the stages described in the model of the entr...

1) What are the stages described in the model of the entrepreneurial process? What are the factors that give birth to a new enterprise and influence how it develops from an idea to

Personal selling, Personal selling: Meaning & definition: Personal se...

Personal selling: Meaning & definition: Personal selling is unique as it is a face to face transaction between a salesman and a prospective customer. Evidently, a well traine

What moral rights does an author have on his work, QUESTION 1 A compute...

QUESTION 1 A computer contract is often in written form. What provisions would you expect to find in such a contract? QUESTION 2 (a) Mr & Mrs Williams have launched a n

What is financing in functions of marketing, What is financing in functions...

What is financing in functions facilitating exchange? Financing: Financing and marketing both functions of a business are interlinked along with each other. The department

What is negative communication, What is Negative communications Numbe...

What is Negative communications Number of people affected by a dissatisfied consumer, and thus negative marketing communication messages, is limited. Implications of a poor p

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd