FORMULATING A MARKET STRATEGY

Selecting a target market

Similar group of customers (Fairly Homogenous) to whom

the marketer wishes to appeal
 Selecting a market oriented strategy is target marketing
In target marketing the marketing mix is tailored to
suit and fit some specific target markets / customers
In contrast, mass marketing, the typical production
oriented approach – aims at everyone with the same
marketing mix
Mass marketing assumes that everyone is the same and
considers everyone to be a potential customer
 FORMULATING A MARKET STRATEGY
Selecting a target market

Approach in Target Marketing is also known as the RIFLE

APPROACH
Approach in Mass Marketing is also known as the SHOTGUN
APPROACH
But mass marketing and mass marketers are not same
Mass Marketing : Means trying to sell to everyone
Mass Marketers : Aim at clearly defined targets / markets
Eg. McDonalds, Kraft Foods, Haldiram’s, Wal-Mart etc.
The confusion - Their target markets, homogenous in nature,
are all well spread out
 THE MARKETING MIX
Designing the Marketing Mix

The crux of the marketing task is the assembling and managing

the marketing mix.
 
The success of a marketing manager depends on how well he is
able to formulate the marketing mix strategy.

It was Jerome McCarthy who classified the marketing mix variables
under four heads each beginning with the alphabet ‘P ’
 
Marketing is an interaction between marketing mix and
environmental variables
 THE MARKETING MIX
Designing the Marketing Mix

Environmental variables lie outside the control of

the firm
- Competition
- Consumer
- Government – legal and statutory laws
- Forces of nature

Environmental variables -Non controllable

Marketing mix variables -Controllable variables

 THE MARKETING MIX
ASSEMBLING AND DEVELOPING THE MARKETING
MIX

Customer is surrounded by the marketing mix

elements and variables

Still customer is not a part of the marketing mix

Customer is the target of all the marketing mix

efforts
 THE MARKETING MIX
PRODUCT

 Physical goods
 Services
 Features
 Benefits
 Quality level
 Accessories
 Installation
 Instruction
 Manual
 Warranty
 Guarantee
 Product line
 Packaging
 Branding
 THE MARKETING MIX
PRICE

Objectives
Flexibility 
Lever over product life cycle
Discounts
Allowances
Taxes
Duties
Levies
Costs
Terms and conditions of supply
 THE MARKETING MIX
PROMOTION
 Objectives
 Promotion blend

Sales people:
 Kind
 Number
 Selection
 Training
 Motivation

Advertising:
 Target
 Kind of ad
 Media type
 Copy trust 
 Sales promotion
 Publicity  
 THE MARKETING MIX
PLACE

Objectives
Channel type
Market exposure
Kinds of middlemen 
Kinds and location of stores 
How to handle transport & storing 
Service level 
Recruiting middlemen 
Managing channels
THE MARKETING MIX