Target Market Strategy

Companies need to consider many factors when choosing a market-targeting strategy. Which strategy is best depends on company resources. When the firm’s resources are limited, concentrated marketing makes the most sense. The best strategy also depends on the degree of product variability. Undifferentiated marketing is more suited for uniform products such as grapefruit or steel. Products that can vary in design, such as cameras and cars, are more suited to differentiation or concentration. The product’s life-cycle stage also must be considered. When a firm introduces a new product, it may be practical to launch only one version and undifferentiated marketing or concentrated marketing may make the most sense. In the mature stage of the product life cycle, however, differentiated marketing often makes more sense. Another factor is market variability. If most buyers have the same tastes, buy the same amounts, and react the same way to marketing efforts, undifferentiated marketing is appropriate. Finally, competitors’ marketing strategies are important. When competitors use differentiated or concentrated marketing, undifferentiated marketing can be suicidal. Conversely, when competitors use undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing, focusing on the needs of buyers in specific segments. Marketing: An Introduction for Education Management Corporation P. 192. I would use concentrated marketing for  Feisty Pink Vodka which thrives by catering to affluent customers who the Wal-Marts of the world can’t serve well, offering them a great taste of vodka that has a rich smooth exceptive taste. It will warm your body all over like you’re on a yacht on the south of France. I want customer’s to not know the difference between my $19.99 bottle of vodka and a $34.99. You know that same great taste but cheaper and healthier. With better ingredients and of course all labeling planet green eath.