CENTRAL LUZON COLLEGE OF SCIENCE AND

TECHNOLOGY, OLONGAPO CITY, INC.

(CELTECH COLLEGE)
#01 CBMU, Upper Kalaklan, 2200, Olongapo City, Philippines
Tel. Nos.: (047) 223-5855 / 09171140297 | Website: www.clcst.edu.ph
ISO 9001:2015 Founded 1959
CERTIFIED

Assignment#2
Part 1

1.What isa market?

A mechanism whereby commodities and services are exchanged as a result of buyers and sellers coming into
contact with one another, either directly or through institutions or agents that operate as middlemen. Markets are
locations where goods are bought and sold in the strictest sense.

2.What are the steps of target marketing?

Segmentation- There are likely to be several different types consumers who would use your
services. Segmentation allows you to identify who these groups are, what their needs are likely to be and
whether or not you are able to help them. For individual and SME businesses, the price of being all things to all
people is likely to be a high price to pay, so focusing on particular segments of your customer base will be more
beneficial and cost effective.

Targeting- Whether you decide to focus on one or more segments, one of the most important factors to
consider next is how well your competitors serve these segments. Is their name well-known? What do they have
that you don't? What can you improve on?

However, even though the segment you have selected are able to obtain the same service from a range of other
businesses, location and convenience for example, may be a key driver for why they would prefer to use your
product or service instead, in which case you should definitely push ahead with targeting them.

You will also need to consider the size of the segment and how it is likely to grow and change in the short,
medium and long term because this will also affect how well you can continue to serve it as your business and
indeed, the industry, develops.

Positioning- position your business in a way that will appeal to their needs and encourages them to purchase
from you.

What perception level are your aiming for?

1. Price – premium, low cost, value

2. Product – premium, mid-range, basic
3. Promotion – high-end, friendly and approachable, professional/conservative
4. Distribution – extensive, selective, exclusive

Your target market will make a purchase decision using a combination of different stages.

1. Recognizing they have a problem or need to solve.

2. Researching how they are going to solve their problem or fulfil their need
3. Reviewing alternative options
4. Acquiring the product or service they need
5. Re-assessing their purchase and potentially reviewing alternative options again

Your operations and processes, customer service, technology, or a combination of all three, will all have an
impact on how your brand is perceived and how well you deliver your products and services. It also determines
whether or not you will receive repeat business and brand loyalty, allowing your company to excel and become
a leader in your industry.

We Teach. We Train. We Touch. We Transform.

 CENTRAL LUZON COLLEGE OF SCIENCE AND
TECHNOLOGY, OLONGAPO CITY, INC.
(CELTECH COLLEGE)
#01 CBMU, Upper Kalaklan, 2200, Olongapo City, Philippines
Tel. Nos.: (047) 223-5855 / 09171140297 | Website: www.clcst.edu.ph
ISO 9001:2015 Founded 1959
CERTIFIED

There is no doubt that if we want our businesses to succeed, we must implement marketing strategies that allow
us to understand how to target our market with the right products and services at the right time, while also
keeping a close eye on how demographics and buyer behavior are likely to change in the future.

3.What do you think of the characteristics of a good segment?

Measureable- business should be able to estimate how much your segment will spend on your products and
services. Businesses need to know approximately how many people are within that segment and how much they
are going to spend.

Substantial- If the market is too small, your business will not be able to earn enough revenue to survive. The
segment also needs to have the means to purchase your products and services.

Accessible- If you intend to target a specific demographic, they must be easily accessible and reachable to you.
It is not a good option if they are physically too far from your business or if the client is exposed to your
marketing.

Unique- If a market segment is very similar to another, it is likely that they are not distinct enough to warrant
tailored messaging and campaigns. To devote resources and time to catering to a market segment, they must be
truly unique from other consumers.

Durable- Some market segments change at such a rapid pace that businesses are having trouble keeping up. A
stable market segment is required to justify the liabilities of targeted and personalized marketing.

4.Differentiate the 3 market coverage, their advantage and disadvantage.

Intensive Distribution- When a business manager seeks to extend the reach of their offering through as many
sales channels as possible, this is referred to as intensive distribution. Soft drink and candy companies, for
example, use this approach, according to a 'Strategic Marketing Cases & Problems' example.

Exclusive Distribution- The second method used to cover your target market is called Exclusive distribution.
This method is the exact opposite of intensive distribution as the goal isn’t to extend the reach of your offering
through as many sales channels as possible. Instead, this method aims for exclusivity which can increase
perceived value and quality of the transaction regarding placement and POS.

Selective Distribution- The Selective distribution strategy falls between the Intensive and Exclusive
distribution strategies. Selective distribution entails choosing retail locations based on key factors such as
geographical location. This can be advantageous to manufacturers because it allows them to enter franchise
businesses and other business chains in specific locations where their target market is concentrated. This will
constrain finances and cap costs associated with new sales channels. Marketers prefer selective distribution
because it allows them to concentrate their efforts on areas that will provide greater profit contributions.

ADVANTAGE- If you're like many business owners, you're swamped and have many tasks vying for your
attention. Creating a marketing strategy will allow you to take a step back for a moment. It will help you
analyze and understand your message and how to effectively reach a larger pool of prospective customers.A
marketing strategy will help you discover what makes you different so you can map out a clear strategy to
communicate those benefits.

DISADVANTAGE- While taking the time to develop a marketing strategy can be key to propel a company's
growth over a period of time, there are disadvantages of implementing a marketing strategy. For one, it can be
challenging to generate momentum. Though you may have an innovative idea and a capable team to execute,
there's no guarantee of success.

We Teach. We Train. We Touch. We Transform.