Question

After evaluating identified segments, decisions have to be made whether to pursue a particular opportunity or not. Assuming the decision is made to proceed, an appropriate targeting strategy must be developed. Explain the basic categories of target marketing strategies and how they can be implemented.

Answer 1

Answer: The following are the four basic categories of the target marketing strategy and the ways in which it can be implemented

1. Undifferentiated marketing: In this strategy a single marketing mix is developed by taking into account the common needs and characteristics of all the market segments. This marketing mix is then applied to the entire market.
2. Differentiated marketing: In this strategy the company creates a different marketing mix for each segment based on the individual requirements of the segments. Each segment is then targeted using a separate marketing mix.
3. Concentrated targeting: In this the company selects only one segment out of many and prepares marketing mix for that segment. The company only conducts marketing activities for that segment.
4. Customized marketing: This mainly takes place in online and personal selling. The needs of the individual customers are identified and then a customised marketing mix is prepared for each of them