Target Market Strategies

Question 1

Target Market strategies

Answer 1

Undifferentiated marketing
Differentiated marketing
Concentrated marketing

Question 2

Undifferentiated marketing

Answer 2

This strategy is used when a company chooses to ignore The differences that are found in the market.
It pursues the total market with one basic marketing offering.
Focusses on the commonalities of the market instead of the differences.
Strategy has lost ground since customers have become more discriminating.

Question 3

Differentiated marketing

Answer 3

The enterprise elects to target two or more market segments, developing unique marketing strategy for each one.
Allows the organisation to cater for diverse needs of different segments.
Costly strategy.

Question 4

Concentrated marketing

Answer 4

Concentrating the market offering on one specific segment can lead to greater expertise in production, distribution and marketing communications.
Allows the organisation to achieve greater customer satisfaction in this singular market segment.
All effort are concentrated on one source.
The risk of product failure and non- acceptance of the product is this concentrated in a single target market.
Should the preferences change or competitors enter with an improved offering you might find yourself without any business.