Targeting

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

Concentrated Marketing * 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
Selective Specialization * The firm selects a number of segments, each objectively attractive and appropriate * Advantage: risk diversification
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