marketing strategy segmenting business markets. competition 2 identify competitors‘ strategies,...
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MARKETING STRATEGY
Segmenting Business Markets
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Competition2
Identify competitors‘ strategies, objectives, strengths, weaknesses and reaction patterns
Manage a good balance of consumer and competitor monitoring
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Segmentation variables for business customers Demographics: industry, company size,
location Operating variables: technology, user status,
customer capabilities Purchasing approaches: centralized,
dezentralized, power structure, relationships, purchasing policies and criteria
Situational factors: urgency, specific applications, size of order
Personal characteristics: focus on companies whose people/values are similar to the buyer‘s, risk taking/risk avoiding customers; high/low loyalty customers
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Five different target market strategies Single-segment concentration Selective specialization Product specialization Market specialization Full market coverage
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Single-segment strategy
concentrated strategy: one market segment is served with one market mix;
The choice for smaller companies with limited resources
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Selective specialization
Multiple segment strategy = differentiated strategy
Different marketing mixes are offered to different segments
The product itself may or may not be different
In many cases only the promotional message or the distribution channel vary
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Product specialization
The firm specialises in a particular product and tailors it to different market segments
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Market specialization
A firm specializes in serving a particular market segment and offers that segment an array of different products
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Full market coverage
Mass marketing strategy offering a single undifferentiated marketing mix to the entire market
Differentiated strategy offering a separate marketing mix to each segment
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Differentiated marketing costs Product modification costs: R&D, engineering Manufacturing costs: producing 10 units of
10 different products is more expensive than 100 units of one product
Administrative costs: separate marketing plans for each segment – extra marketing research, forecasting, sales analysis, promotion, planning and channel management
Promotion costs: increased promotion planning costs and media costs
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