Marketing - Segmentation

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University of Toronto Scarborough
Management (MGM)
Alison Jing Xu

INTRODUCTION y Selecting an appropriate strategy depends on a variety of internal and external variables facing the firm ALTERNATIVE MARKET MATCHING STRATEGIES y The very core of the firms strategy is to match product offerings with the needs of particular market segments y Following factors are taken into consideration o Company Resources Must be adequate to cover product development and other marketing costs o Differentiability of productsSome products can be easily differentiated from others Some can be produced in versions designed specially for individual segments o Stage in the product cycleAs a product matures different marketing emphases are required to fit market needs o Competitors strategiesStrategies and product offerings must be continually adjusted in order to be competitive o Size of segmentThe potential segment must be large enough to make it worthwhile to develop y Singleoffer strategy is the attempt to satisfy a large or a small market with one product and a single marketing program o If its focused on one segment it is often called concentrated marketing o aimed at mass markets is often called indifferentiated or mass marketing y multioffer strategy is the attempt to satisfy several segments of the market very well with specialized products and unique marketing programs aimed at each segment o when its aimed at a large market is called differentiated marketing y a successful match of products to segments through developing a marketing program with the appropriate product design pricing strategy distribution strategy and communication strategy is vital to the market success of the firm y in order for a multioffer approach in a small market to be successful the marketer must identify a high value niche in which customers can afford to pay for small production runs or in some instances customized products y The company with a multioffer marketing strategy should produce more sales by providing higher satisfaction for each of several target markets than would be possible with only a singleoffer strategy o Whether a firm chooses either strategy depends on the managements goals resources and profits
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