Targeting strategies in marketing involve selecting specific segments of the market to focus on and directing marketing efforts toward those chosen segments. Three primary targeting strategies are undifferentiated (mass) marketing, differentiated (segmented) marketing, and concentrated (niche) marketing.
Undifferentiated marketing: employs a unified marketing mix to target the entire market.This approach assumes that the market has similar needs and preferences, often seen in industries where products are perceived as homogeneous, like basic commodities.
Differentiated marketing: involves targeting multiple segments with distinct marketing mixes tailored to each segment's unique characteristics. This strategy recognizes that different segments have different needs and preferences. It enables companies to broaden their market reach while addressing the distinct requirements of various consumer demographics.
Concentrated or niche marketing: focuses on a single, specific segment. This strategy suits businesses with limited resources or those seeking to dominate a niche market. By catering exclusively to a well-defined segment, companies can develop specialized products and tailor their marketing efforts to meet the unique needs of that particular group.
Effective targeting strategies enhance a company's competitiveness by maximizing the relevance of its products or services to the chosen market segments, optimizing resource allocation, and increasing overall customer satisfaction.
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