1. Today’s Objectives
Learn how to choose a segment as your target market. Explore the types of target marketing, who uses them and pros / cons.

2. Selecting Target Market Segments
A target market consists of a set of buyers
who share common needs or characteristics that the company decides to serve.

3. Market Targeting Evaluating Target Segments
Segment size and growth
Segment structural attractiveness
Company objectives and resources

4. Structural Attractiveness
Competition for that segment today. Power of intermediaries (distribution). Market power of that segment – do they have a lot of alternatives? Example: selling to Amazon customers

5. Activity
Select a target segment for a women’s shoe store based on U.S. Census data:
US Census

6. Target Marketing Strategies
Notes to Accompany Slide:
Undifferentiated (mass) marketing: A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Differentiated (segmented) marketing: A market-coverage strategy in which a firm decides to target several market segments and designs separate offers
for each.
Concentrated (niche) marketing: A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

7. Mass Marketing
Undifferentiated (mass) marketing: A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

8. Segmented Marketing
Differentiated (segmented) marketing: A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

9. Niche Marketing
Concentrated (niche) marketing: A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

10. Micro Marketing
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments

11. Target Marketing Examples
Mass Market
Segmented Marketing
Niche Marketing
Individual /Local Marketing

12. Do Now – P1
Re-Open: Class Notes – Target Marketing and Differentiation.
Write the pros and cons of a strategy:
Row 1 - Mass
Row 2 - Segmented
Row 3 - Niche
Row 4 – Micro
Row 5 – Wildcard! Pick one.

13. Pros & Cons Pros Cons Mass High volume
No differentiation leads to low prices and low profits.
Segmented
Differentiated.
Lose focus, spread resources too widely.
Niche
Less competition.
Insufficient volume.
Micro
Maximum differentiation
Low volume, high cost.

14. Check Your Understanding
Edmodo: Take Target Marketing Quiz v2

15. Do Now – P-6
Edmodo: Take Target Marketing Quiz v2

16. Get Ready to Take Notes
Open – Exercise and Notes – Target Marketing and Differentiation.

17. Objectives Why does differentiation matter?
How do marketers differentiate?

18. Differentiation
Process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.

19. Al Ries on Being Different
Better vs. Different - YouTube

20. Differentiation
Product
Services
Channels
People
Image

21. 5 Ways to Differentiate Example
Product? Experience as well as physical product.
Services? How is product delivered?
Channels? Where/how you get the product.
People? Who delivers the product.
Image? What the product represents.

22. Activity Partners Pick a consumer product (besides coffee)
Create an ad that differentiates the product using at least three of the five ways.
Put into a power point that you can share.
SAVE as Project – Differentiation - names

23. Marketing Strategy Takeaways
Strategy = target market + value prop
Strategy vs. tactics
Process = segment, target and position.
Successful strategy:
Different target market, or…
Different value prop.
Difficult to copy or respond.
5 ways to differentiate value prop.

24. Summary – Target Market & Differentiation
Selection: size, growth and structural attractiveness (competition).
Targeting Strategy: mass, segmented, niche, or individual.
Differentiation: product, service, channel, people, image.