Flashcards in STP - Targeting Deck (4)
What are the three targeting options?
- Market concentration which is focusing on a single market segment and attempting to gain max share in that segment
-Multi-segment approach which is attracting buyers in more than one segment
- Niche marketing which focuses marketing efforts on one small defined market
What is a concentrated strategy?
This involves specialising in servicing one specific segment
- Leads to detailed knowledge of that target market yet can reduce the the chance of being diverse in other markets
What is a differentiated strategy?
This involves the development of a number of individual marketing mixes that each serve a different segment r.g Citeron has cars low priced for young people and highly priced for older
- Allows the organisation to tailor its offering to suit the individual segments
- Spreads risk across more than one market