home Marketing Principles of Marketing - Philip Kotler

Principles of Marketing - Philip Kotler

The selection of target market segments

The company may decide to go for one or more segments of a particular market. Suppose that the market painkiller can be divided into three sections according to the intensity of consumer demand (I1 - quick relief, I2 - lasting relief OUT - gradual relief) and three groups on the basis of consumers' age (G1 - youth, T2 - middle-aged people, GZ - elderly people). By comparing the intensity of the needs and age of the consumer, we can distinguish nine possible market segments. The "Helene Curtis" is one of five possible ways to this market represented graphically in Fig. 9 and described below.

I. The concentration on a single segment. The company may decide to serve only one segment of the market, offering, as in this case, long-acting analgesic group of middle-aged persons (see. Fig. 9a).

2. Focus on purchasing need. The company can focus on meeting any one consumer needs. In this case - the production of long-acting analgesic for all types of buyers (see Fig. 96.).

3. Focus on the group of consumers. The company may decide to produce all types of pain medication needed for a particular group of consumers. In this case, the middle-aged persons (see. Fig. 9c).

Fig. 9. Five Ways to Market coverage

4. Maintenance of several unconnected segments. The company may decide to serve several market segments, loosely connected, except that each of them opens to the firm an attractive opportunity (see. Fig. 9d).

5. Coverage of the total market. The company may decide to manufacture the entire range of painkillers to serve all segments of the market (see. Fig. 9d).

When entering a new market, most companies start with a service segment and, if the initiative has proved successful, and gradually cover the other. Priority development of market segments should be carefully considered as part of a comprehensive plan. A good example of careful planning to market and capture a dominant position on it serves up Japanese firms. They penetrate to the little noticed section of the market, gaining a name for itself due to satisfied customers and then spread its activities to other segments. Using this marketing formula, they captured an impressive share of the world car market, cameras, watches, consumer electronics, steel, newly built ships and other goods.

Large companies eventually seek to full market coverage. They want to hold in the industry the same position, which takes in his company "General Motors". And she said that produces vehicles "for all purses, any purpose, any person." The leading company usually refers to different market segments with different offerings. Otherwise, it runs the risk that it will bypass the individual segments of the company, focusing on the needs of these segments.