Question

An essential part of marketing strategy is target market strategy.  Selection of target markets drives marketing objectives and selection of the marketing mix (the 4 P’s).  What are the three general strategies for selecting target markets?

Answer 1

Target marketing strategy is about identifying and describing various business segments known as target groups and then satisfying their needs accordingly by goods and/or services. In simple terms target group means a specific or defined group of customers who are likely to avail goods or services from our organization.

For each target group separate marketing strategy, resource allocation, marketing mix allocation is designed and implemented.

Three generic strategies for selecting target markets are as follows:

1. Mass marketing: Pursuing entire market with one marketing mix

Mass marketing does not consider market segmentation, it designs a single marketing mix for all just like homogenous market. Mass marketing can be implemented to target huge audience.

Example: FMCG Like Toothpaste, Soft Drinks, Etc

2. Niche marketing: Concentrating on one segment

It targets on specific segments of customer population and puts all efforts for that specific segment.

Example: Luxury brands like Rolex, Rolls Royce etc. focuses on luxury customer segments.

3. Differentiated Marketing: Pursuing multiple market segments with multiple marketing mixes

Here in the business, one or more segments are identified and each segment is offered separate marketing offerings. It is also known as multi segment marketing.

Example: A company may have different brands for classification based on gender like say for example separate deodorant brand foe men and women, separate clothing brand by a single company based on gender classification or age classification.

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