Targeting

Question 1

What is market targeting?

Answer 1

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. - and doing this profitably.

Question 2

Name 3 types of marketing

Answer 2

Undifferentiated
Differentiated
Concentrated

Question 3

Undifferentiated (mass) marketing

Answer 3

A market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Question 4

Give one con to mass marketing

Answer 4

Difficult to develop a product that will satisfy all customers

Question 5

Differentiated marketing

Answer 5

A market coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Question 6

Give one example of differentiated marketing

Answer 6

Toyota produces several brands of cars - each targeting its own segment.

Question 7

Give one benefit to differentiated marketing

Answer 7

By offering product and marketing variations to segments, companies hope for higher sales.

Question 8

Concentrated Marketing

Answer 8

A market coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Question 9

Give one example of concentrated marketing

Answer 9

Tesco

Question 10

Give one benefit to concentrated marketing

Answer 10

A firm achieves a strong market position because of its greater knowledge of consumer needs.

Question 11

How do companies choose to target market segments?

Answer 11

Segment size
segment growth 
Profitability of the segment 
Current and potential competition
Capabilities of the business 
can the business exploit the opportunity