Understand Marketing

4.2 UNDERSTAND MARKET TARGETING Market targeting is a process of identifying groups of consumers who are highly likely to purchase a specific good or service. Businesses of all sizes engage are some form of this marketing essential as part of their efforts to secure and maintain customers. 4.3.1 DEFINE MARKET TARGETING Target Marketing – the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. After evaluating different segments, the company must now decide which and how many segments it will target. A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. 4.3.2 DESCRIBE MARKET TARGETING STRATEGY Generally, target marketing can be carried out at several different levels: Undifferentiated Marketing, Differentiated Marketing or micromarketing.

1. Undifferentiated Marketing
Undifferentiated Marketing (mass marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.

This mass marketing strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers. It relies on mass distribution and mass advertising, and it aims to give the product a superior image in people’s minds.

The disadvantages are it is difficult to develop a product and services that will satisfy all customers. Moreover, mass marketers often have trouble in satisfying the needs of specific segments and niches.

For example, Kuching Water Board – only supply water – not provides choices for customer (vanilla, mineral etc)

Air Asia – only offer 1 type of class to all customers

2. Differentiated Marketing Using a differentiated marketing (or segmented marketing) strategy a firm decides to target several market segments and