COMM 131 Lecture Notes - Lecture 5: Micromarketing
Document Summary
Evaluation of market segments and decision as to how many and which segments the company can best serve. Chose the most profitable segment(s) that fit with the long run objectives. The target market is the set of buyers, sharing common needs, that the company decides to serve. Ultimately we want to choose the most profitable segment(s) that fit with long-run objectives. Under certain conditions, it might be viable to go after multiple segments. When doing so, you must consider: timing of entry resources, potential synergies across segments, preempting competitive offerings, extent of cannibalization. Evaluating market segments: size, growth, competition, segment saturation, protectability, risk, fit, relationship with other segments, profitability, costs. Choosing a targeting strategy - has to do with corporate level objectives and the use of resources. Undifferentiated (mass) marketing focus on the common needs and trouble when more firms come in. Differentiated (segmented) marketing capture more overall market share, higher marketing expenses.
