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Marketing Strategy
Market Segmentation and Target Strategy
A market consists of people or organizations with wants,money to spend,and the
willingness to spend it.However,within most markets the buyer needs are not
identical.Therefore,a single marketing program starts with identifying the differences
that exist within a market,a process called market segmentation, and deciding which
segments will be pursued ads target markets.
Marketing segmentation enables a company to make more efficient use of its
marketing resources.Also,it allows a small company to compete effectively by
concentrating on one or two segments.The apparent drawback of market segmentation
is that it will result in higher production and marketing costs than a
one-product,mass-market strategy.However, if the market is correctly segmented,the
better fit with customers needs will actually result in greater efficiency.
The three alternative strategies for selecting a target market are market
aggregation,single segment,and multiple segment.Market-aggregation strategy
involves using one marketing mix to reach a mass,undifferentiated market.With a
single-segment strategy, a company still uses only one marketing mix,but it is directed
at only one segment of the total market.A multiple-segment strategy entails selecting
two or more segments and developing a separate marketing mix to reach segment.
Positioning the Product
Managementsability to bring attention to a product and to differentiate it in a
favorable way from similar products goes a long way toward determining that
products revenues.Thus management needs to engage in positioning,which means
developing the image that a product projects in relation to competitive products and to
the firms other products.
Marketing executives can choose fro
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