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MarketingStrategy

MarketSegmentationandTargetStrategy

Amarketconsistsofpeopleororganizationswithwants,moneytospend,andthe

willingnesstospendit.However,withinmostmarketsthebuyerneedsarenot

identical.Therefore,asinglemarketingprogramstartswithidentifyingthedifferences

thatexistwithinamarket,aprocesscalledmarketsegmentation,anddecidingwhich

segmentswillbepursuedadstargetmarkets.

Marketingsegmentationenablesacompanytomakemoreefficientuseofits

marketingresources.Also,itallowsasmallcompanytocompeteeffectivelyby

concentratingononeortwosegments.Theapparentdrawbackofmarketsegmentation

isthatitwillresultinhigherproductionandmarketingcoststhana

one-product,mass-marketstrategy.However,ifthemarketiscorrectlysegmented,the

betterfitwithcustomersneedswillactuallyresultingreaterefficiency.

Thethreealternativestrategiesforselectingatargetmarketaremarket

aggregation,singlesegment,andmultiplesegment.Market-aggregationstrategy

involvesusingonemarketingmixtoreachamass,undifferentiatedmarket.Witha

single-segmentstrategy,acompanystillusesonlyonemarketingmix,butitisdirected

atonlyonesegmentofthetotalmarket.Amultiple-segmentstrategyentailsselecting

twoormoresegmentsanddevelopingaseparatemarketingmixtoreachsegment.

PositioningtheProduct

Managementsabilitytobringattentiontoaproductandtodifferentiateitina

favorablewayfromsimilarproductsgoesalongwaytowarddeterminingthat

productsrevenues.Thusmanagementneedstoengageinpositioning,whichmeans

developingtheimagethataproductprojectsinrelationtocompetitiveproductsandto

thefirmsotherpr

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