MARKET TARGETING

Ø  MARKET SEGMENTATION,TARGETING AND POSITIONING 2
MARKETING

Ø  EXPLAINED TARGET MARKETING AND ALTERNATIVE MARKETING STRATEGIES AND VIDEO LINKS ARE SHARED FOR MARKET SEGMENTATION AND MARKETING POSITIONING(DOWN)

Ø  TARGET MARKETING

1.     MARKET SEGMENTATION IS THE PROCESS OF MATCHING NEEDS OF CONSUMERS BY GROUPING INTO RELATIVELY HOMOGENEOUS GROUPS.

2.     SEGMENTATION IS THE STEPPING STONE TO THE MARKET TARGETING

3.     MARKET TARGETING IS THE PROCESS OF DECIDING AND PREPARING THE MARKETING PROGRAMS FOR MARKETS.

4.     TARGET MARKETING ON THE BASIS OF SEGMENTATION

A.    IDENTIFICATION OF THE TARGET MARKET FOR BETTER UNDERSTANDING OF POTENTIAL AND ACTUAL CONSUMERS

B.    A DETAILED ANALYSIS AND UNDERSTANDING OF THE TARGET MARKET ALLOWS A COMPANY TO DEVELOP AND IMPLEMENT A MARKETING MIX TAILORED TO THE SPECIFIC NEEDS OF THE MARKET

C.    ALLOWS A COMPANY TO ASSESS THE POTENTIAL DEMAND FOR THE PRODUCTS

D.    ALSO HELPS IN IDENTIFICATION OF COMPETING PRODUCTS AND THEIR SPECIFIC MARKET AND DEVELOP RESPONSIVE COMPETITIVE POSITIONS

E.     INCREASES THE LIKELIHOOD OF SALES EFFECTIVENESS AND COST EFFICIENCIES

F.     EASY TO POSITION

Ø  DISADVANTAGES

1.     TARGETING MULTIPLE MARKETS GENERALLY INCREASE MARKETING COSTS

2.     CUSTOMIZATION,PERSONALIZATION AND INDIVIDUALIZATION OF MARKETS LEADS TO PROLIFERATION OF PRODUCTS

3.     NARROWLY SEGMENTATION A MARKET TO TARGET MAY ACTUALLY PREVENT A PRODUCT FROM DEVELOPING BRAND LOYALTY

Ø   ALTERNATIVE MARKETING STRATEGIES

1.     UNDIFFERENTIATED MARKETING(MASS MARKETING)

2.     DIFFERENTIATED MARKETING( SEGMENTED MARKETING)

3.     NICHE MARKETING(CONCENTRATED MARKETING)

4.     MICRO MARKETING(LOCAL AND INDIVIDUAL MARKETING)

Ø  MEANING OF MASS MARKETING

·         MASS MARKETING IS A MARKET STRATEGY IN WHICH A FIRM DECIDES TO IGNORE MARKET SEGMENT DIFFERENCES AND APPEAL THE WHOLE MARKET WITH ONE OFFER OR ONE STRATEGY. TRADITIONALLY MASS MARKETING HAS FOCUSED ON RADIO,TELEVISION AND NEWSPAPERS AS THE MEDIA USED TO REACH THE BROAD AUDIENCE.

·         MASS MARKETING IS USED WHEN THE PRODUCT COMPLETES THE NEED OF THE CUSTOMER. THEY DO NOT MEET THE DEMANDS OR WANTS OF  A CUSTOMER

Ø  FEATURES OF MASS MARKETING

1.     TARGETED AT LARGE AUDIENCE

2.     MASS MEDIA AND MESSAGE IS ALSO SAME

3.     THE OBJECTIVE IS OF SHOT GUN APPROACH HIT AS MANY PEOPLE AS YOU CAN

4.     USED FOR BRAND BUILDING AND BRAND RECALL EFFORTS OR TO INTRODUCE A NEW OFFER

5.     THE OBJECTIVE OF THE MASS MARKETING IS TO OPTIMIZE SALES AND REACH THE CUSTOMER OR MAKE THE CUSTOMER AWARE ABOUT THE BRAND.

Ø  EXAMPLE OF MASS MARKETING

1.     FOR MANY YEARS COCA COLA MEANT ONLY ONE THING TO CONSUMER. IT WAS A PATENTED SOFT DRINK AVAILABLE IN SINGLE FLAVOR.

2.     MASS MARKETING IS USED BY TELECOMMUNICATION COMPANIES,SOAPS AND DETERGENTS ETC

´  LIMITATION OF MASS MARKETING

1.     GROWTH OF COMPETITION

2.     MORE PROFITS BY TARGET SEGMENTS

3.     BETTER ROI WITH DIFFERENTIATED STRATEGY

Ø  DIFFERENTIATED MARKETING

1.     DECIDES TO OPERATE IN SEVERAL MARKETING SEGMENTS AND DESIGNS SEPARATE OFFERS FOR EACH

2.     DIFFERENTIATED STRATEGY INVOLVES A DIFFERENT MARKETING MIX FOR EACH SEGMENTS

3.     BY TAILORING THEIR MARKET OFFERING TO MANY DIFFERENT SEGMENTS MARKETER FIRM CAN GENERATE ADDITIONAL SALE

Ø  EXAMPLE OF DIFFERENTIATED MARKETING:-

•                 GENERAL MOTORS:- A CAR FOR EVERY PURSE,PURPOSE AND PERSONALLY

•                 NIKE SHOES:-FOR RUNNING GOLFS,AEROBICS,CYCLING AND BASKETBALLS

´  NICHE MARKETING( CONCENTRATED MARKETING)

1.     MARKETING IS VERY SMALL BUT PROFITABLE MARKET SEGMENT

2.     A NICHE IS VARY NARROWLY DEFINED CUSTOMER GROUP DESIRING A DISTINCTIVE MIX OF BENEFITS

3.     IDENTIFICATION BY DIVIDING A SEGMENTS INTO SUB SEGMENTS

·         LIKE SHAHNAZ’S HERBAL PRODUCT

·         LOGITECH INTERNATIONAL OFFER MANY VARIATIONS OF COMPUTER MOUSE. PRODUCE MOUSE FOR LEFT AND RIGHT HANDED PEOPLE,OPTICAL MOUSE,CORDLESS MOUSE,3-D MOUSE

·         FEATURES OF NICHE MARKETING

1.     THE CUSTOMERS IN THE NICHE HAVE A DISTINCTIVE SET OF NEEDS

2.     CUSTOMERS ARE PREPARED TO PAY A PREMIUM PRICE

3.     NOT LIKELY TO ATTRACT OTHER COMPETITORS

4.     GAINS SOME ECONOMIES OF SCALE THOROUGH SPECIALIZATION

´  ONE TO ONE MARKETING

·         PERSONALIZED MARKETING

·         OR INDIVIDUAL MARKETING

·         THE ONE TO ONE MARKETING AS A CRM APPROACH WAS ADVANCED BY DON PEPPERS AND MARTHA ROGERS IN THEIR BOOK IN 1994 THE ONE TO ONE FUTURE.

·         ONE TO ONE MARKETING (1:1) IS A STRATEGY THAT RELIES ON GETTING TO KNOW THE INDIVIDUAL CHOICES MADE BY A CUSTOMER AND THEN TAILORING MARKETING OUTREACH TO EACH CUSTOMER DIFFERENTLY BASED ON THOSE CHOICES.

·         IT IS AN APPROACH THAT IS NOT USED TO GET THE CUSTOMER’S ATTENTION BUT TO KEEP THEIR ATTENTION AND THEIR BUSINESS.

·         BASIC TYPES OF ONE TO ONE MARKETING

1.     PERSONALIZATION:- HERE THE MARKETING PLAN IS CUSTOMIZED ACCORDING TO CUSTOMER’S PERSONAL PREFERENCES AND TASTE OF THE EACH CUSTOMER. AMAZON.COM USES IT.

2.     CUSTOMIZATION:-HERE THE COMPANY DOES NOT LEARN THE PREFERENCES OF EACH CUSTOMERS BUT GIVES THE INDIVIDUAL CUSTOMER THE ABILITY TO CUSTOMIZE THE PRODUCT ACCORDING TO THEIR CHOICE .EXAMPLES OF COMPUTER RETAILER WHO GIVES CHOICES TO CUSTOMERS TO CUSTOMIZE THE LAPTOP ACCORDING TO THEIR REQUIREMENT.

·         DELL WAS A REVOLUTIONARY COMPANY IN TERMS OF ONE TO ONE MARKETING.

·         HARLEY DAVIDSON MOTOR CYCLE IS DIFFERENT BECAUSE IT CAN BE CUSTOMIZED AS THE CUSTOMER WANTS.

Ø  MERITS OF ONE TO ONE MARKETING

1.     BUILD CUSTOMER BASE

2.     GENERATE REFERAL BUSINESS

3.     RETAIN THE OLD CUSTOMER

4.     IMPROVE CUSTOMER LOYALTY BY LOYALTY PROGRAMS

5.     CAN BE USED FRO SALES PROMOTIONS OR BRAND RECALL

6.     AVOIDING OF BRAND SWITCHING