GrC 361 Final

3 target markets
undifferentiated, concentrated, multisegment
Undifferentiated targeting strategy
marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix [doesn’t differentiate between markets]
advantages/disadvantages of undifferentiated marketing strategy
-potential savings on production and marketing costs
-unimaginative product offerings
-company more susceptible to competition
Concentrated marketing strategy
marketing strategy that selects one segment of a market for targeted marketing efforts [niche market]
advantages/disadvantages of concentrated marketing strategy
-concentration of resources
-meets narrowly defined segment
-small firms can compete
-strong positioning
-segments too small or changing
-large competitors may target market
Multisegment marketing strategy
strategy that chooses 2 or more well-developed market segments and develops unique marketing mix for each
advantages/disadvantages of multisegment targeting strategy
-greater financial success
-economics of scale
-higher costs
Customer Relationship Marketing (CRM)
-tracking interactions with customers to optimize customer satisfaction and profits
-customize goods and services offered to customers based on data
Trends in CRM
-direct and personal marketing efforts growing (one-size-fits-all marketing not relevant)
-consumers loyal to companies that have earned their loyalty
-mass media approaches decline as technology allows better customer tracking
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
Effective positioning
-assess positions occupied by competing products
-determine dimensions underlying these positions
-choose market position that has greatest impact