Targeting

Advantage

: risk diversification.

Advantage

The firm gains a strong knowledge of the segment's needs and achieves a strong market presence

Risks

A market segment may turn sour and competitor may invade the segment

Companies may try super-segments

A set of segments sharing some exploitable similarity

Advantage

risk diversification

Target Market Selection

After profiling segments, firms have to make a decision on how many segments to target. Evaluation of segments is done before selection.

Super Segments

A set of segments sharing some exploitable similarity

Selective Specialization

The firm selects a number of segments, each objectively attractive and appropriate

Product Specialization

The firm makes a certain product and it sells to several different market segments

Market Specialization

The firm concentrates on serving many needs of a particular customer group

Full Market Coverage

The firm attempts to serve all customer groups with all the products that they may need

Undifferentiated Marketing

The firm ignores segment differences and goes after the whole market segment

Differentiated Marketing

The firm operates in several market segments and designs different products for each segment