2. Targeting

Segmentation extremes - undifferentiated, microsegmentation

Targeting alternatives:

  • One product to (a variety of) segments
  • A variety of products to one segment.

e.g. Proctor & Gamble's variety strategy - give buyers brand alternative within the same category

Single segment (e.g. small firm with limited resources)

Advantages: Gain competitive advantage more easily than trying to simultaneously target multiple segments; better use of resources.

Disadvantages: Dependence on one customer group.

Selective targeting

Expands market opportunities and eliminates dependence on a single market; attractive when some of the same positioning components can be used for more than a single target.

Extensive targeting

Appeal to all or most of the buyers in a product-market in order to gain a dominant market position

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