CIMA E1 Syllabus E2. Marketing - Targeting - Notes ^{9 / 11}

Targeting is the process of selecting the best market segment for the product.

Limited resources, competition and large markets make it ineffective and inappropriate for companies to sell to the entire market. (every market segment)

The management of a company can choose one of the following policy:

1. Mass (or undifferentiated marketing)

   This policy is to produce a single product and hope to get as many customers as possible to buy it.

   Segmentation is ignored entirely.

   e.g. Coca-cola

2. Concentrated marketing

   The company attempts to produce the ideal product for a single segment of the market.

   e.g. Rolls Royce cars.

3. Differentiated marketing

   The company markets several product versions, each aimed at a different market segment.

   The disadvantage is the additional costs of marketing and production.

   e.g. Moisturisers with different packaging and scents for different genders and age groups