Flashcards in MKT4580 Chapter 5 Deck (13):
What are the 3 Traditional Targeting Strategies
Mass Marketing is an....
undifferentiated approach that involves no segmentation. Mass marketing works best when the needs of an entire market are homogeneous, and results in lower marketing costs even though it is risky and vulnerable to competitors. (Ford Model T)
Differentiated Marketing involves...
dividing the total market into groups of customers having relatively common or homogenous needs and developing a strategy to pursue one or more of these groups.
Differentiated Marketing - Multisegment
attracting buyers in more than one segment by offering a variety of products that appeal to different needs
Differentiated Marketing - Market Concentration
Focusing on a single market segment and attempting to gain maximum share in that segment
focuses marketing efforts on one small, well-defined market segment or niche that has a unique, specific set of needs. Requires that firms understand and meet the needs of target customers so completely that the firm’s substantial share of the segment makes it highly profitable
Criteria for successful segmentation
Identifiable & measurable
Viable & sustainable
Gender, age, occupation, education, generation, income
Zip code, city, regional, population density
Usage rate, usage occasion, price sensitivity, benefits sought