Targeting

Question 1

Define Targeting

Answer 1

The process of evaluating the attractiveness of different market segments, and deciding which segments to enter.

Question 2

How is evaluation completed during targeting?

Answer 2

Linked heavily to segmentation attractiveness criteria.

Substantial = High market growth
Actionable= Links well to company capabilities
Accessible= No barriers to entering the market

Question 3

Define a Target Market

Answer 3

A set of consumers who share similar needs and characteristics.

Question 4

Name the 4 main Targeting Strategies.

Define and give features for each strategy.

Answer 4

Undifferentiated Marketing

• Market coverage strategy that targets the whole market with one offering due to common needs (e.g Utilities)
• Mass Marketing Technique: Marketing Mix designed to appeal to the greatest number of consumers.

Differentiated Marketing

• Market coverage strategy that targets several market segments; the ones that are strategically key to the firms success.
• Design of seperate marketing mixes for each segment.

Concentrated Marketing

• Market coverage strategy that targets a large market share of 1 key market.
• ‘Niche Marketing’ Strategy: Often borne from a firm having resource scarcity, and therefore segments are generally smaller.

Micro-marketing

• Tailoring marketing mix to suit specific needs of locations or individual customers.
• Marketing mix customised to suit local market needs
• Linked to one-to-one marketing through mass customisation.

Question 5

Define Products-Focused Consumer Market Targeting

Answer 5

How product offerings determine a businesses targeing strategy.

Question 6

Name and define the 5 types of Product-Focused Market Targeting, with example brands.

Answer 6

Single Segment Concentration (e.g Ferrari)
- Single Product in Single Market

Selective Specialisation (e.g Avon)
- Specialised product range sold across key market segments.
Product Specialisation (e.g Microscopes)
- Single product, sold to different market segments due to common needs/ characteristics of segments.

Market Specialisation (e.g Pantene)
- Specialised product range sold to one key market segment; intended to serve all needs of the segment.

Full Market Coverage (e.g Coca-cola)
- Various products sold across a range of market segments; Intends to serve all needs of full consumer base. Only available to large firms with lots of resources.

Question 7

Name 5 key factors on Consumer Targeting

Answer 7

1. Stage of BCG/ PLC model
2. Market Variability (Consumers characteristics)
3. Product Variability (Standardised product)
4. Competitors Strategies
5. Firm Resources

Question 8

Define Socially-Responsible Market Targeting

Answer 8

Consumer market targeting strategy intended to serve most vulnerable consumer segments over company interests (e.g children)

Question 9

What type of consumer targeting strategies do Businesses use?

Answer 9

Product-Focused Consumer Market Targeting.

Question 10

Define Re-Targeting, and where it is most common.

Answer 10

The process of targeting consumers who have shown interest in purchasing your products. Used Mostly in e-commerce to draw you back onto their site.