Chapter

10

Target Marketing in Services

10-1

Target Marketing in Services

TARGET MARKETING
The process of identifying market segments, selecting one or more of them and developing a marketing mix to meet their needs is known as target marketing.

10-2

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

A service marketer has many options and choices for reaching out to his market. They are: Undifferentiated Marketing Differentiated Marketing Focused or Concentrated Marketing

Target Marketing

10-3

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

SINGLE SERVICE OFFER

SINGLE MARKET

Undifferentiated/Mass Marketing

10-4

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

Service offer version - 1 Service offer version - 2 Service offer version - 3

Single Market

Differentiated Marketing

10-5

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

SINGLE SERVICE OFFER

NICHE MARKE T

Focus/Concentrated/Niche Marketing

10-6

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

Target Marketing
Unlike undifferentiated and differentiated marketing, Target Marketing concentrated on: Identifying similarities between customers Identifying differences between different groups of customers. But also identifying differences among members of homogeneous groups of customers.

10-7

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

Benefits of Target Marketing

The market size is large and the service firm may not have sufficient resources to address it, neither would it perhaps want to do so. Customers are scattered all over the geographical spread, making it practically impossible to reach every potential buyer. Targeting was far more cost-effective. Competitors are entrenched, making entry and survival difficult. Therefore, smaller firms can seek niche or specialized markets. Customer requirements from the service vary widely. Targeting a segment or two to the exclusion of the rest increases the chances of meeting most of customers demands.

It generated customer loyalty.

10-8

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

There are three stages to Target Marketing: Market segmentation Market Targeting Market Positioning

10-9

Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

Stage 1: Market segmentation

Requirements for Effective Segmentation Measurable and obtainable: characteristics of segments Size, purchasing power, and

Accessible: The segments should be effectively reached and served. Substantial and viable: The segment chosen should be large and profitable. It should be cost-effective for the service marketer to address the segment. Intensity in competition: More the intensity of competition, less attractive is the segment. Actionable: If the segments are attractive and have the potential for profit making, then effective marketing programmes can be designed. Differentiable: The segments should be distinct from each other, behaving and responding differently.
10-10 Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee Excel Books

Target Marketing in Services

Bases for Segmenting the Service Consumer The service marketer can segment the market according to consumer characteristics and consumer responses. Consumer characteristics indicate who buys: Geo-demographic Demographic

10-11 Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

How to segment the market Survey stage Analysis stage Profiling stage

10-12 Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books

Target Marketing in Services

Stage 2: Market Targeting

SERVICE MARKET SEGMENT - 1 MARKET SEGMENT - 2 MARKET SEGMENT - 3

ORGANI SATION

Focus/Concentrated/Niche Strategy

SERVICE
ORGANI SATION

MARKET SEGMENT - 1 MARKET SEGMENT - 2 MARKET SEGMENT - 3

Multi-Segment Strategy
10-13 Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee Excel Books

Target Marketing in Services

Identify Target Markets STAGE 1 Identify key offer characteristics Tangible (colour, size, design) Intangible reputation, guarantees Service Features identification and weightage to each of them

STAGE 2 Draw a perceptual map Head-On/me too

The Process of Market Positioning

STAGE 3 Decide on a competitive strategy

Position away/avoid competition Less profitable; on growth

STAGE 4 Design offer attributes, associated imageries STAGE 5 Sustain a competitive advantage

USP

10-14 Services Marketing Concepts, Planning & Implementation, Chittaranjan Bhattacharjee

Excel Books