Marketing strategies for selecting a target market

There are five target market selection strategies:

single segment concentration
commodity specialization
segment specialization
selective specialization
full market coverage.

The single-segment concentration strategy involves the selection of one target market segment.

The product specialization strategy provides for the orientation of the company's activities with a certain type of product, which is offered to different groups of consumers.

The strategy of segment specialization is the orientation of the company's activities to meet the needs of the needs of one market segment.

The strategy of selective (selective) specialization is based on the choice of target segments within the entire market without matching to product or segment characteristics.

Full market coverage strategy - the desire to satisfy the needs of the entire market as a whole.

Target segment evaluation process

The target segment is the segment of the market to which the company focuses its activities.

To select the target segment, you need to consider:

1. Segment capacity (consumer demand market potential).

2. Attractiveness of the segment (perspective and profitability).

The prospects of the segment are determined by the pace of development

Segment profitability refers to the ability to generate some profit for the company.

3. The presence of a competitive advantage of the company

4. Compliance with the capabilities of the company

5. Alignment with company goals

6. Market share of the company in the segment

7. Level of competition

Marketing strategies based on market segmentation

Depending on the segmentation of the market, there are strategies of undifferentiated, differentiated and concentrated marketing.

Undifferentiated marketing is based on considering the entire market as a single set of consumers.

Differentiated marketing is based on market segmentation, taking into account the characteristics characteristic of this particular segment.

Concentrated marketing - focused on one small segment of the market.

Principles of effective segmentation

Principles of effective segmentation:

1. The presence of differences among the selected segments

2. Need to pinpoint differences

3. Differences between segments must have a significant difference

4. Each selected segment must be homogeneous (features that unite consumers within a particular segment)

5. The specifics of the segment should be determined by a set of marketing tools.

6. At least one of the selected segments must have sufficient market potential.