STP - Targeting

Question 1

What are the three targeting options?

Answer 1

• Market concentration which is focusing on a single market segment and attempting to gain max share in that segment
• Multi-segment approach which is attracting buyers in more than one segment
• Niche marketing which focuses marketing efforts on one small defined market

Question 2

What is a concentrated strategy?

Answer 2

This involves specialising in servicing one specific segment
- Leads to detailed knowledge of that target market yet can reduce the the chance of being diverse in other markets

Question 3

What is a differentiated strategy?

Answer 3

This involves the development of a number of individual marketing mixes that each serve a different segment r.g Citeron has cars low priced for young people and highly priced for older

• Allows the organisation to tailor its offering to suit the individual segments
• Spreads risk across more than one market

Question 4

What is an undifferentiated strategy ?

Answer 4

• Assumes the market is one unit with no significance between them
• Best suited for products with little psychological appeal
• Little costs and max of economies of scale