To compete more effectively, main companies are now embracing target marketing. Instead of scattering their marketing effort.
Effective target marketing requires that marketers * Identify and profile distinct groups of buyers who differ-in their needs and preference(market segmentation) * Select one or more market segments to enter(market targeting) * For each target segment, establish and communicate the distinctive benefits of the company’s market offering(market positioning)
Level of market segmentation
The starting point for discussing segmentation is mass marketing. In mass marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.
Segment marketing
A market segment consists of a group of customers who share a similar set of needs and wants. Thus, we distinguish between car buyers who are primarily seeking low-cost basic transportation, those seeking luxurious driving experience, and those seeking driving thrills and performance.
Flexible market offering Consist of two parts:
Naked solution
Containing the product and service elements that all segment member’s value.
Discretionary options
That some segments member’s value.
Basic preference patterns * Homogeneous preferences Show a market where the entire consumer has roughly the same preferences. The market shows no natural segments. We would predict that existing brands would be similar and cluster around the middle of the scale in both sweetness and creaminess. * Diffused Preferences At the other extreme, consumer preferences may be scattered throughout the space, indicating that consumers vary greatly in the most people. * Clustered preferences The market might reveal distinct preference cluster called natural market segments.

Niche marketing A niche is a