Page 238 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 9: Segmentation, Targeting and Positioning

A company may decide to enter a segment that otherwise does not currently appear to be a Notes
positive under certain conditions, such as when there is belief among the managers that the
segment’s attractiveness or the company’s business strength is likely to improve in the coming
few years, or they believe such segments would offer opportunity to enter more attractive
markets in the coming years.
There are three basic targeting strategies:
1. Undifferentiated Mass Marketing.
2. Differentiated Multiple Segment Marketing.

3. Single Segment Specialisation or Niche Marketing.
1. Undifferentiated Mass Marketing: This strategy involves ignoring any differences among
consumers and offer one product or service to the entire market. This strategy of mass
marketing focuses on what is common in the needs of consumers rather than what is
different.

Example: For more than 90 years, Coca-Cola offered only one product version to the
whole market and hoped that it would appeal to everyone. Hamdard offers its Rooh Afza based
on this strategy. Undifferentiated marketing provides cost economies.
2. Differentiated Multiple Segment Marketing: The marketer decides to enter several market
segments and develops separate offers for each.

Example: Maruti is producing different models of cars for various segments, Nike offers
athletic shoes for different sports and Coca-Cola and Pepsi are offering different versions of
their soft drinks.
Companies producing toiletries are offering different versions of toilet soaps for dry skin,
oily skin and normal skin. These companies expect higher sales volumes by offering
product versions and a stronger position within each segment. Differentiated marketing
strategy increases costs considerably.
3. Single Segment Specialisation or Niche Marketing: Many companies succeed by producing
a specialised product aimed at a very focused market or a niche. This strategy also appeals
to firms with limited resources. The company targets a segment and goes for a larger
market share instead of a small share in a larger market segment.

Example: Recycled paper producers often focus on the market for greeting cards or
wedding cards. Oshkosh Truck is the largest producer of airport rescue trucks.
Concentrated strategy may involve more than normal risks. If a large competitor decides to
enter the same segment, the going may become quite tough for the smaller company.

Self Assessment

Fill in the blanks:
8. Markets which are not separated by the marketers for the purpose of promotion are called
…………………… markets.

9. HUL produces and promotes different versions of All Clear Shampoos. This is a case of
…………………… marketing.

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