TARGETING● TWO STEPS OF TARGETING- STEP 1

3. Targeting● Two steps of targeting- Step 1: Evaluate a target market- Step 2: Choose customer group(s)● Undifferentiated Marketing Strategy- A market-coverage strategy in which a firm decides to ignore market segmentdifferences and go after the whole market with one offer- The company designs a product and a marketing programme that appeal to thelargest number of buyers. It relies on quality, mass distribution and massadvertising to give the product a superior image in people’s minds. - Pros:+ Lower production, inventory and transportation cost+ Keep down advertising cost+ Keep down advertising cost - Cons+ Effectiveness of one-size-fit-all approach?+ Competition● Differentiated Marketing Strategy- A market-coverage strategy in which a firm decides to target several marketsegments and designs separate offers for each- Pros: Better satisfy the needs of customers, medium risk and competition- Cons: Cost, product portfolio management● Concentrated Marketing Strategy- A market-coverage strategy in which a firm goes after a large share of onemarket or a few submarkets.- Pros: Competitive advantage + best way to satisfy customers- Cons: Risky