Page 115 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes marketing programmes matching the wants and preferences of each segment. It should, however,
be realised that all segments do not represent equally attractive opportunities for a company.
Companies need to categorise segments according to their present and future attractiveness and
their company’s strengths and capabilities relative to different segments’ needs and competitive
situation. The following sequential steps present a useful framework, managers can use for this
purpose:
1. Establish criteria to measure market attractiveness and business strength position.

2. Evaluate market attractiveness and business strength factors to ascertain their relative
importance.
3. Assess the current position of each potential segment on each factor.
4. Project the future position of each market segment based on expected environmental,
customer, and competitive trends.
5. Evaluate Segment Profitability.
6. Evaluate implications of possible future changes with respect to strategies and requirement
of resources.
Before making the final decision of choosing the market segment, it is necessary to examine that
the segment is at least strongly positive on one of the two dimensions of market attractiveness
and business strength and is at least moderately positive on the other.
A company may decide to enter a segment that otherwise does not currently appear to be a
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.
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.
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.

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