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Targeting Strategies
The Targeting phase in STP involves selecting a specific market segment for marketing.
Businesses employ diverse targeting strategies, considering factors like the type of product, company resources, and target market characteristics.
Undifferentiated Targeting, or Mass Marketing, applies to products with universal appeal, like M&Ms, or basic commodities such as salt and sugar. It aims to reach a broad audience without segmenting the market.
Differentiated Targeting, or Segmented Marketing, tailors the marketing mix to different segments. Though resource-intensive, it helps capture a larger market. For example, Samsung Mobile offers various models to cater to diverse customer preferences.
Concentrated Targeting, or Niche Marketing, involves an exclusive marketing mix for a specific market segment. It suits companies focusing on niche markets, like Lefty's products for left-handed individuals.
Micromarketing, or Customized Marketing, tailors products and marketing to specific individuals or locations, as seen with a real estate company selling customized homes.
A successful targeting strategy aligns with the company's objectives, aids resource allocation, and enables effective reach and satisfaction in the chosen market segments.
Targeting Strategies
Targeting strategies in marketing involve selecting specific segments of the market to focus on and directing marketing efforts toward those chosen segments. Three primary targeting strategies are undifferentiated (mass) marketing, differentiated (segmented) marketing, and concentrated (niche) marketing.
Undifferentiated marketing: employs a unified marketing mix to target the entire market.This approach assumes that the market has similar needs and preferences, often seen in industries where products are perceived as homogeneous, like basic commodities.
Differentiated marketing: involves targeting multiple segments with distinct marketing mixes tailored to each segment's unique characteristics. This strategy recognizes that different segments have different needs and preferences. It enables companies to broaden their market reach while addressing the distinct requirements of various consumer demographics.
Concentrated or niche marketing: focuses on a single, specific segment. This strategy suits businesses with limited resources or those seeking to dominate a niche market. By catering exclusively to a well-defined segment, companies can develop specialized products and tailor their marketing efforts to meet the unique needs of that particular group.
Effective targeting strategies enhance a company's competitiveness by maximizing the relevance of its products or services to the chosen market segments, optimizing resource allocation, and increasing overall customer satisfaction.