Strategic Marketing MKT703

Virtual University of Pakistan

2/1/2020 SMM1 1
Targeting Decisions

Session23
 Introduction

• Successful companies have a market target

and effective positioning strategy.
• Colgate tooth paste Total (positioned as oral
dental antibiotic formulation).
 Opportunity Identification

• Identifying new types of classes of

buyers
• Uncovering unsatisfied needs of buyers
• Creating new ways or means for
satisfying buyer needs

4-4
 Opportunity-Organization
Matching
• Determines whether an identified opportunity is
consistent with an organization’s business, mission, and
competencies
• SWOT Analysis often employed – identification of KSF
though IFA and EFA
• Weaknesses has to be converted into strength in
order to exploit a particular market
• Financially attractive opportunities are sometimes
rejected at this stage due to lack of match
4-5
 Features of Opportunity
Analysis
• Qualitative Frame - Focuses on matching the attractiveness
of an opportunity with the potential of uncovering a market
niche
• Analysis depends on data about
1. competitive activity
2. buyer requirements
3. market demand and supplier sources
4. General environment
5. organizational capabilities.
• The attractiveness of the business depends on what type of
value can be created in the market compared to competitors
 Targeting strategies_ Trends
• One target segment – concentrated market – one
positioning strategy

• All segments target – differentiated market –

differentiated positioning strategy

• All segments target – mass market – one

positioning strategy
 Targeting strategies_ Trends
• Macro segmenting in Emerging Economies -
when preferences are not clear
• Micro segmentation when markets becomes
mature and with clear preferences
• Niche market may have to grow to reach an
appropriate level for segmentation as a large
mass market
 Confusion
• Whether the marketer is using a segmenting strategy or
a variety strategy.
• Depends on the way market is defined. Example
KELLOG cereals strategy offering variety

Segments Defined NOT Defined

Target selected Target multiple
Selective
targeting niches Segments Extensive
targeting

Product Variety of
specialization products