Market Tar Getting

8/2/2019 Market Tar Getting

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BY, MANUJAMARKET TARGETING


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MARKET TARGETING INTRODUCTION :-

Company cannot concentrate on all the segments of themarket. Company can satisfy only limited segments. Thesegments the company wants to serve are called the target

market ,and the process of selecting target market isreferred as market targeting. Market segmentation resultsinto dividing total market into various segments or parts.

Such segments may be on the basis of consumercharacteristics or both. Once the market is divided into

various segments , company has to evaluate varioussegments and decide how many and which once to target .It is simply an act or process of selecting a target market.


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DEFINITION

Market targeting is a process of selecting thetarget market from the entire market. Targetmarket consists of group/ groups of buyers to

whom the company wants to satisfy or for whomproduct is manufactured, price is set, promotionefforts are made, and distribution network isprepared.

Market targeting consists dividing the marketinto segments, evaluating these segments andselecting the appropriate segments as the targetmarket.


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PROCEDURE OF MARKET TARGETING

1. Evaluating market segments:-Evaluation of market segments calls for measuring

suitability of segments. To determine overallattractiveness/suitability of the segments, two factors are used:

a)Attractiveness of segments:-In order to determine attractiveness of the segments, the

company must think on characteristics/conditions which reflectits attractiveness such assize,profitability,measurabilty,accessibility,actionable, potentialfor growth, scale of economy, differentiability ,etc. These

characteristics helps to decide whether the segments isattractive.


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b)Objective and resources of company:-

The firm must consider whether the

segment suit with marketing objectives.Similarly the firm must consider its resourcecapacity. The material, technological, and

human resources are taken into account. Thesegment must be within resource capacity ofthe firm.


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2. Selecting market segments:-

When the evaluation of segments is over, thecompany has to decide in which marketsegments to enter. That is, company decideson which and how many segments to enter.This task is related with selecting the targetmarket .Target market consists of various

groups of buyers to whom company wants tosell the product, each tends to be similar inneeds or characteristics.


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ALTERNATIVE STRATEGIES (METHODS)

FOR MARKET TARGETING

SINGLE SEGMENT CONCENTRATION:-

It is the simplest case. The companyselects only a single segments as targetmarket and offers a single product. Henceproduct is one, segments is one. Forexample company may select only higherincome to serve from various segmentsbased on income such as poor, middleclassetc.


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Single segments offers some merits like.

I . Company can gain strong knowledge segmentsneeds and can achieve a strong market position inthe segments.

ii. Company can specialization its production,

distribution and promotion.iii. Company by capturing leadership in the segments,

can earn higher return on its investments.

It suffers from following demerits like ..

i. Competitors may invade the segments and canshake companys position.

ii. Company has to pay higher costs for change infashion, habit and attitude.


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2.SELECTIVE SPECIALISATION:-

In this option ,the company selects several anumber of segments. Company selectsseveral segments and sells different productsto each of the segments. Here companyselects many segments to serve them withmany products. All such segments are

attractive and appropriate with firmsobjectives and resources.


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3.PRODUCT SPECIALISATION:-

In this alternative, company makes a specificproduct, which can be sold to several segments.Here product is one, but segments are many.

Company offers different models and varieties tomeet needs of different segments. The majorbenefit is that the company can build a strongreputation in the specific product area. But therisk is that product may be replaced by anentirely new technology. Any ready-madegarment companies prefer this strategy.


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4.MARKET SPECIALISATIOIN

This strategy consists of serving many needsof a particular segments .Here ,products arespecific segments. Company provides all newproducts that the group can feasible use. But,reduced size of market, reduced purchasecapacity of the segments, or the entry of

competitors with superior products rangemay affect companys position.


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5.FULL MARKET COVERAGE

In this strategy, company attempts to serveall the customer groups with all the productsthey need. Here all the segments are served.

Only very large firm with overall capacity canundertake a full market coverage strategy.


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CONCLUSION

Thus market targeting is an essential aspectof marketing programme. A manager needs alot of experience, knowledge, and expertiseto take decision on target market. Thealternative to be used depends upon a largenumber of internal and external variable,

careful and objectives analysis of thesevariables can assist in selecting targetmarket.


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Thank

You.

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Market Tar Getting