Which targeting strategy to choose

The targeting decision determines whether to go after most of the segments, only a few, or a single segment. A major company may decide to serve more than a single segment.

Management may select a few segments or instead seek intensive coverage of the product market by targeting all or most of the segments.

The objective is to aim a specific marketing effort at each segment that management chooses to serve. For example, Anheuser-Busch, the leading U. In large product markets, companies sometimes select market target strategies that offer buyers a variety of products.

Yet these various strategies are designed to give buyers brand alternatives. When a buyer desires a brand change, a switch can be made to another brand or product version offered by the same firm. It may be difficult to distinguish whether a firm is using a segment some elements of both strategies may be present. For example, the company may offer variety to buyers in a particular market segment. Offering customers different flavors or varieties of food products are illustrations of various strategies.

Mars, the company that sells candy bars, offers a wide variety of candy bars and illustrates the strategy. The variety strategy is popular in the food and beverage product markets. This targeting strategy enables a company to focus its efforts on one group of buyers with similar needs. This is also called niche marketing. Single-segment targeting is appropriate for small firms with limited resources.

The company can dedicate its total effort towards buyers in that target segment. Single-segment targeting may help a firm gain a competitive advantage more easily than if the firm tries to simultaneously target two or more segments.

The disadvantage of a single target is the dependency on one customer group. Cut the guesswork from marketing planning by setting an objective behind every dollar. Often market attractiveness and competition may vary across market segments. Single-segment targeting should focus on a segment with promise and an opportunity for the company to sustain a competitive advantage.

The objective should be to dominate the segment. This targeting strategy extends beyond a single segment to include a few markets. Multiple targets expand beyond market opportunities and eliminate dependency on a single market target.

Selective targeting is an attractive strategy when some of the positioning elements can be used for more than a single target segment. For example, Mont Blanc pens, in writing instruments, use a similar line of products to target upscale buyers and businesses purchase the pen for employee recognition perks.

This is also called mass marketing. The objective of the extensive targeting is to gain a dominant market position by appealing to all or most of the buyers in a product market. The variable needs and preferences of buyers in many product markets require the multiple targeting of market segments.

Unless specific marketing mix appeals are developed for each segment, buyers? For example, it would choose extensive targeting to include GM in automobiles, United Airlines in air travel, and Molson Brewery in beer. Broad Match Keywords — These are the most generic keywords that you can use. One example of targeting strategies is ARA. Marketing Automation can be used to find people who are interested in security and transportation services in the US and Canada.

Vertek CPT uses SharpSpring CRM and marketing automation to offer possibilities for individuals who are highly targeted and might not be found otherwise. Vertek typically used to target prospects that were generally interested in CPT equipment and services. Now you know how powerful marketing automation can be!

Stop wasting money on Facebook ads and start targeting people who are actually looking for Marketing Automation services with Marketing Automation tools. Marketing automation allows you to find the right people at the right time by showing them your ad when they search using specific keywords that indicate they are interested in Marketing Automation.

Here are a few marketing targeting examples you and your brand can improve. Build an extension of your team to build revenue growth. Grab this handly guide to help in your selection process. Selecting the product markets to be served by a company Is a critical business strategy decision.

Deciding how to compete in each product market of interest to the company is the focus of a marketing strategy. In analyzing the company and marketing strategies of successful companies, one feature stands out. The selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment.

A business offering multiple products can determine if the various segments should receive one generic product such as in mass marketing , or if each segment should receive a customized product multi-segment , based upon the market's diversity, maturity, the level of competition and the volume of sales expected.

To return to our previous example, the pie, we would now select the most delicious ones and focus on eating these. Most large companies follow the differentiated market targeting strategy. For instance, a car company produces several different models of cars, and often even offers different brands.

Fiat, for example, consists of more than the core brand Fiat. Think of Ferrari, Alfa Romeo and Lancia. Each brand targets its own segment of car buyers. Thus, we select several segments to serve and design separate offers for each. The reason of pursuing this market targeting strategy is that higher sales and a stronger position within each segment can be the consequence.

Certainly, a strong position within several segments generates higher total sales than an undifferentiated marketing across all segments. However, differentiated market targeting strategies also increase costs. These come from the fact that different offerings have to be developed for each segment. Instead of producing one product 10, times, the company has to produce 10 products 1, times each.

Also, the development of separate marketing plans for each segment involves additional research, analysis, planning and forecasting. Consequently, the company should weigh increased costs against the benefits when deciding on a differentiated market targeting strategy.

To stay with our example: If we do not want to eat the whole pie, neither several slices, but only one small slice that has a special criterion others do not have such as a nut on top, we go for the concentrated niche market targeting strategy.

Following the concentrated market targeting strategy, the company focuses on one or a few segments or niches in a market. The aim is then to reach a large share in this segment or niche, instead of going after a small share of a large market. Why should a company do so? Clearly it will be able to achieve a stronger market position in the chosen segment because its knowledge of the consumer needs in the niche is larger.

Also, it may acquire a special reputation for delivering exactly what the consumer wants in that niche. The company can fine-tune its products, marketing programmes and prices to the specific needs of consumers in the niche. Therefore, its marketing becomes more effective. But marketing may also become more efficient, because the company can tailor its offerings, channels and programmes to the needs of those consumers it can serve best and most profitably.

The difference between a niche and a segment is the size. While a segment is rather large and will in most cases attract several competitors, a niche is quite small and may be focused on by few competitors only. Niching thus allows especially small companies to focus their limited resources on serving niches. The key is to find those niches that are overlooked by larger competitors. In our example, micromarketing would mean to eat the nut on the already special slice only.

In fact, micromarketing means nothing else than tailoring the marketing programmes and products to the needs and wants of individual consumers or local customer segments. This is the narrowest market targeting strategy possible. Instead of seeing a customer in every individual, we see the individual in every customer. We can tailor our products and programmes to suit the tastes of specific locations of specific individuals.

Therefore, micromarketing can take the form of local marketing and individual marketing. Under the local marketing strategy, we tailor brands and promotions to the specific needs and wants of groups of local customers. These may be cities, neighbourhoods etc.

The most extreme market targeting strategy option is individual marketing. Then, we tailor our marketing programmes and products to the needs of individual customers. This is also called one-to-one marketing, markets-of-one marketing and mass customisation.

Today, this customisation for individual customers is facilitated by new technologies, such as databases, robotic production and flexible manufacturing. In micromarketing, relationships with the few customers the company focuses on is of utmost importance.