Page 254 - DMGT509_RURAL MARKETING

Unit 13: Rural and Urban Markets

13.6 Market Targeting Notes

Once the firm has identified its market segment opportunities, it has to decide how many and
which ones to target.

1. Evaluating the Market Segments: In evaluating different market segments, the firm must
look at two factors the segments overall attractiveness i.e., size, growth, profitability scale
economics. Second the firm must consider whether investing in the segment makes since
given the firms objectives and resources.

2. Selling the Market Segments: Hearing evaluated different segments, the company can
consider five patterns of target market selection.
(a) Single Segment Concentration: the company may select a single segment volkswagen
concentrates on the small company market and Porsche on the sports can market.
Through concentrated market the firms gains a strong knowledge of the segments
needs and achieves a strong market presence.
(b) Selective Specialization: here the firm selects a no of segments, each objectively attractive
and appropriative there may be little or number if synergy among segments but
each segment premises to be a money market this multi segment coverage strategy
has the advantage of diversifying the firms risk.

(c) Product Specialization: here the firm specializes in making a certain product that it
sells to several segments.
e.g., could be microscope manufactures increases scopes to universities laboratories
govt. laboratories commercial laboratories.
Through a product specialization strategy , the firm builds a strong reputation in the
specific product area.
(d) Market Specialization: Here the firm concentrates on serving any needs of a particular
customer group.
E.g., is firm that sell an assortment of products only to university laboratories,
including microscopes, oscilloscope, Bunsen, because and chemical flasks.

The firm gains a strong reputations in saving this customer group and becomes a
channels for feather products that the customer group could use.
(e) Full market coverage: here a firm attempts to save all customer groups, unit all the
products they might need. Only very lounge fives can undertake a full market
coverage strategy.
E.g., IBM, general motors, coca cola etc. i.e. large firms can ever a whole market in
two broad ways. Through underestimated marketing or differentiated market.
3. Additional Consideration: fore other consideration must be taken in to ale in valuating
and selecting segments.
(a) Ethical choice of market target: market targeting sometimes generates public controversy.
The public is concerned when marketers take unifies advantage of groups or
disadvantaged groups.
(b) Segment interrelationships and super segments: in selecting more than one segment to
serve, the company should pay attention to segment inter relationships on the cost,
performance and technology side.

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