MARKET TARGETING

Made byANKIT KUMAR SHREYA JAIN TD - IV

INTRODUCTION
Once the firm has identified its marketsegmented opportunities, it has to decide how many and which ones to target. It includes the following steps Evaluating the market segments Selecting the market segments Additional considerations

EVALUATING THE MARKET SEGMENTS In this, the firm must look at two factors The segments overall attractiveness The companys objectives and resources Some attractive segments could be dismissed because they do not mesh with the companys long-run objectives, or the segment should be dismissed if the company lacks one or more necessary competences to offer superior value.

SELECTING THE MARKET SEGMENTS Having evaluated different segments, the company can consider five patterns of target market selection1. Single-segment concentration 2. Selective specialization 3. Product specialization 4. Market specialization 5. Full market coverage

1. Single segment concentration Through concentrated marketing the firm gains a strong knowledge of the segments needs and achieves strong market presence. The firm also enjoys operating economies through specializing its production, distribution and promotion. If it captures segment leadership, the firm can earn high return on its investment. RISK A particular market segment can turn sour or a competitor may invade the segment.

2. Selective specialization Here the firm selects a number of segments, each objectively attractive and appropriate. There may be little or no synergy among the segments. This has the advantage of diversifying the firms risk.

3. Product specialization Here the firm specializes in making a certain product that it sells to several segments. Through this the firm builds strong reputation in the specific product area. RISK the downside risk is that the product may be supplanted by an entirely new technology.

4. Market specialization Here the firm concentrates on serving many needs of a particular customer group. RISK The downside risk is that the customer group may have its budgets cut.

5. Full market coverage Here a firm attempts to serve all the customer groups with all the products they might need. Only very large firms can undertake a full market coverage strategy. Large firms can cover a whole market in two broad ways Undifferentiated marketing Differentiated marketing

 UNDIFFERNTIATED MARKETING The firm ignores market segments differences and goes after the whole market with one market offer. Focuses on basic buyer need rather than on differences among buyers. Relies on mass distribution and mass advertising. endow the product with superior image in peoples minds.

 DIFFERNTIATED MARKETING The firm operates in several market segments and designs different programs for each segment.

ADDITIONAL CONSIDERATIONS Ethical choice of market targets. Segment interrelationships and supersegments. Segment-by-segment invasion plans. Intersegment cooperation.

WELHOME
On the basis of above studied points, Welhome follows SELECTIVE SPECIALIZATION PRODUCT SPECIALIZATION UNDIFFERENTIATED MARKETING STRATEGY

SELECTIVE SPECIALIZATION
They do segmentation on the basis of different income levels. They target mostly for the lower middle class, focusing on the point that they have minimum rate of Rs. 25 for a bathing towel. They also target the middle class in some of their products.

PRODUCT SPECIALIZATION
They sell home furnishing products only.

UNDIFFERENTIATED MARKETING STRATEGY

They have products both for the lower middle class and the middle class with no differentiations on the basis of rates and quality.

BIBLIOGRAPHY
Google Market Management- by Philip Kotler (The Millenium Edition).