Welcome to

Market TargetingRina Suprina, M.Hum, M.SiPar

Ivan Prasetya, M.Par

How do we reach Target Market?

Strategies for ReachingTarget Markets

Undifferentiated Marketing

Differentiated Marketing

Concentrated Marketing

Micromarketing

Okay, Let’s see what those strategies really mean!

Undifferentiated marketing:

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

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Strategies for ReachingTarget Markets

Differentiated marketing:

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

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Strategies for ReachingTarget Markets

Procter and Gamble (P&G) is one of many companies that Practicing Differentiated Marketing.

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Differentiated Marketing

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Besides P&G, Lunchables also using a Differentiated Marketing

Lunchables

Concentrated marketing (niche marketing):

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

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Strategies for ReachingTarget Markets

Micromarketing: Involves targeting potential customers at a very basic level, such as by ZIP code, specific occupation, lifestyle, or individual household

• The Internet may allow marketers to make micromarketing even more effective

• GeneSolutions targeting a specific occupation

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Strategies for ReachingTarget Markets

Then, what is the next step?

• No single, best choice strategy suits all firms

• Determinants of a market-specific strategy:• Company resources

• Product homogeneity

• Stage in the product life-cycle

• Competitors’ strategy

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Selecting and Executing a Strategy

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Hypotical Competitive Positioning Map for Selected Retailers