Classic / Mohamed Ogbi, Proimpact, Proimpact Marketing Consultancy / November 9, 2016

The Targeting Process – Proimpact Blog

To plan for targeting, you must consider the market coverage approach you want to take, you can use one of four coverage approaches: undifferentiated marketing, differentiated marketing, concentrated marketing and individualized marketing.

Undifferentiated marketing

Essentially a mass-marketing approach, which targets the entire market using the same marketing mix, ignoring any segment differences. This assumes that all customers in a particular market, regardless of any differences in characteristics or behavior, will respond in the same way to the same marketing attention. Undifferentiated marketing is less expensive than other coverage strategies because it develops and implements only one marketing mix. However today’s markets are rarely so homogeneous; even slight differences can serve as clues to underlying needs in segments where an organization can gain competitive advantage, encourage customer loyalty and ultimately return profits.

Differentiated marketing

In this approach, you formulate a separate marketing mix for the two or more segments you choose to target. You may not target all segments in a given market, but for those you rand as priorities, you will need different marketing mixes geared to each segment’s unique characteristics and behaviors. The assumption is that you can provoke a different response from each segment by using different marketing mixes. Customers benefit because their specific needs are being addressed, which increases satisfaction and encourage customer loyalty.  Moreover, you can compete more effectively by tailoring the marketing mix for each segment, although this is much more costly than undifferentiated marketing and may overburden resources if not carefully managed.

Concentrated marketing

It involves targeting one segment with one marketing mix. The aim of the approach is to compete more effectively and efficiently by understanding and satisfying one sizable set of customer. Sometimes uncontrollable and unexpected factors such as new competitors or changes in customer needs can make the targeted segment less attractive or unfeasible over time.

Individualized marketing

The individualized approach is able to tailor marketing offers to individuals within certain targeted segments.Using the right technology there is the possibility to opt for mass customization and create products and/or communications tailored to individual customers’ needs on a lager scale. The limited-time customization offer further enhanced the product’s upmarket image and sense of exclusivity.

Segment personas

This happen when marketers add a human dimension to targeting by constructing personas, factious yet realistic profile representing how specific customers in targeted segments would typically buy, behave and react in a marketing situation. The idea is to think about how customers interact with a product and competing products, what motivates and influences those customers and how their needs and performances affect their buying and consumption behavior.

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