Marketing strategy is the mantra through which the company hopes to create customer value and achieve profitable customer relationships. A company’s heart beat can be measured by the sales it makes which by definition, is the amount of purchases made by customers. For this very reason, companies need to be customer centered. A market share is only captured by acquiring customers and maintaining them by delivering greater value. However, the customers are diverse individuals of different tastes and thus, it is required to divide the total customers in optimal segments that are expected to yield greatest results. This process involves, market segmentation, market targeting, differentiation and positioning.
Market segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. For instance, a more modern, hip and artsy McDonald’s branch at Union Square in NYC would appeal to the Yuppie customers in the region as opposed to the average American taste that demands the plain and original McDonald’s feel as seen in a branch in White Plains.
Market Targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Market Targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company with limited resources might decide to serve only one or a few special segments or ‘market niches.’ For instance, a start-up social media marketing company at a college may only focus to advertise their clients to the students of their college. The market segment of that specific college, serves as the niche that is being targeted to. On the other hand, Nike marketed its innovative running shoes to serious runners which was the market niche it was