Models And Strategies For Products Entering The Target Market

The target market is the market that the enterprise decides to enter.

I. target market model

The company can consider possible target market models. There are five ways to adopt:

(1) intensive single market

The simplest way is to choose a niche market for centralized marketing.

Volkswagen concentrates on the car market; Richard D Irwin concentrates on the economic and business textbook market.

Through intensive marketing, the company has a better understanding of the needs of the market segments and has established a special reputation, so that a strong market position can be established in the segmented market.

In addition, the company has gained many economic benefits through specialization of production, sale and promotion.

If the subdivision market is properly supplied, the company's investment will be highly remunerate.

At the same time, intensive marketing is more risky than general.

There may be a downturn in individual market segments.

For example, young women suddenly stopped buying sports clothes, which reduced the income of Bobby Brooks company.

Or a competitor decides to enter the same market.

For these reasons, many companies prefer to decentralization marketing in several niche markets.

(two) selective specialization (multi market segments)

By adopting this method, we select several market segments, each of which is attractive in terms of objective and consistent with the company's goals and resources.

But there is little or no connection between the segments, but every market is likely to make profits.

This multi segmented market target is better than the single market segmentation target, because it can disperse the risk of the company, even if a segment market loses its attractiveness, the company can continue to make profits in other market segments.

(three) specialization of products

This method concentrates on the production of a product that sells products to all kinds of customers.

For example, microscope manufacturers sell microscopes to university laboratories, government laboratories, and industrial and commercial laboratories.

The company is going to sell different kinds of microscopes to different customer groups instead of producing other instruments that the laboratory may need.

Through this strategy, the company has established a high reputation in certain products.

If the product, which is a microscope, is replaced by a completely new microscopic technology, there will be a crisis.

(four) specialization of the market

It refers to the service to meet the various needs of a certain group of customers.

For example, the company can provide a series of products for the university laboratory, including microscope, oscilloscope, Bunsen burner, chemical flask, etc.

The company specializes in serving this customer group and has gained a good reputation and become a sales agent for all kinds of new products needed by this customer group.

But if university labs suddenly cut their budgets, they will reduce the number of instruments purchased from specialized companies in the market, which will create a crisis.

(five) full market coverage

It means that the company wants to meet the needs of various customer groups with various products.

Only a large company can adopt a complete market coverage strategy, such as international business machines (computer market), General Motors (automotive market) and Coca Cola Co (beverage market).

Two target market strategy

(1) three target market strategies

1. no difference marketing strategy.

The indifference marketing strategy refers to the whole market of the product as a target market, and a single marketing strategy to develop the market, that is, to attract as many buyers as possible with a product and a marketing plan.

The indifference marketing strategy only considers the similarities between consumers or users on demand, but does not care about their differences in demand.

Before 60s, Coca Cola Co adopted the strategy of offering products to all customers with a single taste variety, uniform price and bottle and the same advertising theme.

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The theoretical basis of indifference marketing is the cost economy.

The production of single product can reduce the cost of production and storage and pportation. Advertising and other promotional activities without distinction can save promotional expenses. Without market segmentation, enterprises can reduce their marketing input in market research, product development and various marketing mix plans.

This strategy is more suitable for products with wide market demand, high homogeneity, and mass production and mass sales.

Present

For most products, the indifference marketing strategy is not necessarily appropriate.

First of all, consumer demand varies objectively and constantly. A product that is long accepted by all consumers and users is very rare.

Secondly, when many companies are adopting the strategy, the market competition will be fierce. At the same time, consumers' needs can not be satisfied in some small market segments, which is unfavorable to enterprises and consumers.

Again, it is easy to be attacked by competitive enterprises.

When other enterprises provide more distinctive products and services for different market segments, enterprises adopting indifference strategy may find that their market is being attacked by silkworms, but they can not effectively fight back.

Because of these reasons, some of the world's largest enterprises that have implemented long-term indifference marketing strategies have finally been forced to switch to a differentiated marketing strategy.

Coca Cola Co, which is regarded as the model of indifference marketing, has to change its original strategy in the face of the strong offensive of Pepsi Cola and Qi Xi. On the one hand, it will march towards the non cola beverage market, and on the other hand, it will launch various types of new happiness for different needs of customers.

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2. differentiated marketing strategies

Differentiated marketing strategy is to divide the whole market into several market segments, and set up an independent marketing plan for each sub market.

For example, clothing manufacturers choose different brands and products with different prices for different gender and income levels, and adopt different advertising themes to publicize these products, which is a differentiated marketing strategy.

The advantages of differentiated marketing strategy are: small batch, multiple varieties, flexible production and strong pertinence, so that consumer demand can be better satisfied, thereby promoting product sales.

In addition, because enterprises are