1. Market centralized enterprises choose a market segment and concentrate on serving it. Smaller enterprises generally fill a certain part of the market in this way.

Centralized marketing enables enterprises to deeply understand the demand characteristics of this market segment and adopt targeted products, prices, channels and promotion strategies, thus gaining a strong market position and a good reputation. But at the same time, it also means greater business risks.

2. Product specialization enterprises focus on producing a product and selling it to all customers. For example, clothing manufacturers sell high-end clothing to young, middle-aged and elderly consumers, and enterprises provide different kinds of high-end clothing products and services to different customers without producing other grades of clothing that consumers need.

In this way, enterprises have established a high reputation in high-end clothing products, but once there are substitutes of other brands or popular preferences of consumers, enterprises will face great threats.

3. Market specialized enterprises specialize in serving specific customer groups and try their best to meet their various needs. For example, enterprises specialize in providing various grades of clothing for elderly consumers. Enterprises specializing in serving this customer group can establish a good reputation. However, once the demand potential and characteristics of this customer group suddenly change, enterprises will bear greater risks.

4. Selective specialized enterprises choose several market segments, and each market segment is attractive to the enterprise's goals and resource utilization. But there is almost no connection between each market segment. This strategy can disperse the business risks of enterprises, even if one market segment loses its appeal, enterprises can still make profits in other market segments.

5. Complete market coverage enterprises try to meet the needs of various customer groups with various products, that is, target all market segments. For example, the clothing manufacturer in the above example provides various grades of clothing for customers of different ages.

Generally, only powerful large enterprises can adopt this strategy. For example, IBM develops many products in the computer market, and Coca-Cola develops many products in the beverage market to meet various consumer needs.

Extended data:

Criteria for target market selection:

(a) has a certain scale and development potential.

Enterprises entering a certain market expect to make profits. If the market scale is narrow or tends to shrink, it is difficult for enterprises to develop after entering. At this time, they should think carefully and should not enter easily.

Of course, enterprises should not regard market attraction as the only choice. In particular, efforts should be made to avoid the "majority fallacy", that is, to follow the same thinking logic as competitive enterprises and take the largest and most attractive market as the target market.

The result of competing for the same customer group together is excessive competition and unreasonable waste of social resources, and at the same time, some consumer needs that should be met are ignored and neglected.

At present, many domestic enterprises often regard cities, especially large and medium-sized cities, as their first choice market, ignoring small towns and rural markets, which can easily lead them into a misunderstanding. If we think differently, some enterprises that are not doing well at present may have a "bright future".

(b) the attractiveness of market segments.

A market segment may have ideal scale and development characteristics, but it may not be attractive from the perspective of profit. Porter believes that there are five forces that determine the long-term internal attraction of the whole market or any of its market segments. These five groups are competitors in the same industry, potential new competitors, substitute products, buyers and suppliers.

(three) in line with the objectives and capabilities of the enterprise.

Although some market segments are attractive, they can't promote enterprises to achieve their development goals, and even distract enterprises from achieving their main goals. Consideration should be given to abandoning such markets.

On the other hand, we should also consider whether the resource conditions of the enterprise are suitable for operating in a certain market segment. Only by choosing those markets that enterprises have the conditions to enter and can give full play to their own resource advantages as target markets, enterprises will be in an invincible position.

Under the condition of modern market economy, fierce competition often occurs between manufacturer brand and dealer brands, which is the so-called brand war. Generally speaking, the competition between the manufacturer's brand and the dealer's brand is essentially the strength contest between the manufacturer and the dealer.

In the case of good market reputation and large market share, manufacturers' brands should be used more, and dealers who are unable to operate their own brands can only accept manufacturers' brands.

On the contrary, when the dealer brand has a good brand reputation and a huge and perfect sales system in a certain market field, it is also beneficial to use the dealer brand. Therefore, when making brand user decisions, we should fully consider the strength comparison between manufacturers and distributors in combination with specific conditions in order to make objective decisions.

Baidu Encyclopedia-Target Market Selection Strategy

How to choose the target market?

Why choose the target market? Because not all market segments are attractive to this enterprise, no enterprise has enough human resources and funds to meet the whole market or pursue excessive goals. Only by fostering strengths and avoiding weaknesses and finding a target market that is conducive to giving full play to its existing advantages in manpower, financial resources and material resources will it not stumble in the huge market. The so-called target market refers to which market segment or segments the enterprise chooses to serve after market segmentation. There are usually five models for reference in the choice of target market.

1. Market centralization

Enterprises choose a market segment and concentrate on serving it. For example, Blue Ocean House focuses on the market segment of men's wear brands and only provides adult clothing products. Target concentration enables enterprises to deeply understand the demand characteristics of this market segment and adopt targeted products, prices, channels and promotion strategies, thus gaining a strong market position and a good reputation. The defect of this model is that it is not conducive to the product extension of later enterprises.

2. Product specialization

Enterprises concentrate on producing one product and sell it to all customers. For example, clothing manufacturers sell high-end clothing to young, middle-aged and elderly consumers, and enterprises provide different kinds of high-end clothing products and services to different customers without producing other grades of clothing that consumers need. In this way, enterprises have established a high reputation in high-end clothing products, but once there are substitutes of other brands or popular preferences of consumers, enterprises will face great threats.

3. Market specialization

Enterprises specialize in serving specific customer groups and try their best to meet their various needs. For example, enterprises can establish a good reputation by providing young fashion consumers with various grades of clothing and serving this customer group. However, once the demand potential and characteristics of this customer group suddenly change, enterprises will bear greater risks.

4. Selective specialization

The enterprise chooses several market segments, and each market segment is attractive to the enterprise's goals and resource utilization. But there is almost no connection between each market segment. For example, in the production of sportswear Nike, not only the category is subdivided, but also different clothing products are provided according to different age groups. This strategy can disperse the business risks of enterprises, even if one market segment loses its appeal, enterprises can still make profits in other market segments.

5. Complete market coverage

Enterprises try to meet the needs of various customer groups with various products, that is, take all market segments as target markets. For example, the clothing manufacturer in the above example provides various grades of clothing for customers of different ages. Generally, only powerful large enterprises can adopt this strategy. For example, Alibaba is in the e-commerce market, and Meituan has developed many products in the field of life services to meet various consumer needs.

The credit card market in the banking industry is highly competitive. Suppose you are the product manager in charge of credit card products in a bank. What will you do when subdividing the credit card market and choosing the target market? As a product manager in the financial industry for ten years, my experience is to do at least the following two things:

Ensure that existing customers will not be lost, especially those who have good income and expenditure and can provide you with profits;

Seize market share from competitors by looking for profitable customers.

To achieve the above two points, we must first subdivide the credit card market. Although the customers in the credit card product market have clear attributes: gender, age, occupation, family assets, region and so on. Credit card products are usually aimed at all groups of people, and customers have a strong cross-cutting, and customers' needs are mainly reflected in the amount. Therefore, we take the credit card amount as the first factor to carry out market segmentation, and then make corresponding product market strategy choices according to market analysis, as shown in Figure 3-6.

Figure 3-6 Market Segmentation and Strategic Choice of Credit Card Products

When credit card products enter the market for the first time, the product manager will judge the credit rating of customers according to their attributes and give the initial limit. In the later period, according to the consumption and usage of customers and the overall performance of product segments, the quota will be raised and lowered to achieve the strategic goals of reasonable capital allocation, controllable risks and maximum profits. Small credit cards with less than 5,000 yuan are the most competitive, with low entry threshold and small amount. Customers are generally used as daily consumption, and they can generally repay on time. If there are few installments, banks will earn less interest income. Although the user base is large, their profitability is low, so they choose strategic retention. With the increase of the quota, the intensity of competition decreases, the risk index increases, and the number of qualified customers decreases. However, more and more customers are doing staging, which brings more profits to banks. Therefore, product managers will focus on the market segments that can bring profits to banks, devote themselves to developing large-scale markets, optimizing product structure, adjusting business rules and rationally allocating funds, so as to gain more market share of large-scale customers and help enterprises gain more benefits.

Through this simple example, the product or investment manager can make decisions according to the different returns of different markets in the process of product investment risk. A good segmentation model can better study customers, and product managers and marketers can concentrate on promoting customers to use products more effectively. This model has played an important role in studying market demand and developing new functions of products.

What are the factors that affect the choice of target market?

1. product characteristics: the homogeneity of products indicates the difference in performance and characteristics, which is one of the factors that enterprises can't ignore when choosing the target market. Generally speaking, for products with high homogeneity, such as salt, it is suitable to implement undifferentiated marketing, and for products with low homogeneity or heterogeneity, differentiated marketing or centralized marketing is a suitable choice;

2. Market characteristics: supply and demand are the two basic forces of the market, and their changing trend is often the fundamental reason for determining the development direction of the market. When demand exceeds supply, indiscriminate marketing strategy is often adopted. When supply exceeds demand, differentiated marketing or centralized marketing strategy is often adopted;

3. Cycle stage: for new products in the introduction and growth period, the marketing focus is to stimulate and consolidate consumers' preferences, and it is best to implement undifferentiated marketing or centralized marketing for a specific market segment;

4. Competitor's strategy: Enterprises can choose different target market coverage strategies from competitors. If competitors adopt undifferentiated marketing strategy, enterprises should choose differentiated marketing strategy or centralized marketing strategy, which makes it easier to give play to their advantages.

The factors affecting the target market selection are as follows: 1. Product characteristics The homogeneity of products indicates the differences in performance and characteristics of products, which is one of the factors that enterprises can't ignore when choosing the target market. Generally speaking, for homogeneity ...

September 2020 12-so what are the factors that affect the target market? High target market, standardized products, good internal quality and … marketing or centralized marketing are suitable choices. Different characteristics can not be ignored. The product is in the introduction period, becoming …

Selection steps of target market selection

Target market selection and marketing includes three steps: market segmentation, target market determination and market positioning. Market positioning means that enterprises create a specific market image for products from all aspects, so that they show different characteristics to competitors' products, thus forming a special preference in the minds of target customers.

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The main task of determining the target market is to segment the market and select the target market.

1. Market segmentation

(1) The basis of consumer market segmentation. Market segmentation should be based on certain segmentation variables. The variables of consumer market segmentation mainly include region, population, psychology and behavior.

(1) geographical subdivision. Regional segmentation means that enterprises segment the consumer market according to the geographical location of consumers and other geographical variables (including urban and rural areas, topography and climate, transportation, etc.). ).

② Population segmentation. Population segmentation means that enterprises segment the consumer market according to demographic variables (such as age, gender, income, occupation, education level, family size, family life cycle stage, religion, race, nationality, etc.). ).

③ Psychological subdivision. Psychological subdivision is to subdivide the consumer market according to psychological variables such as consumers' lifestyle and personality. Psychological variables have an important influence on consumers' desires and needs, so it is necessary to subdivide the consumer market psychologically.

④ Behavior subdivision. Behavior segmentation refers to the enterprise subdividing the consumer market according to the time when consumers buy or use a product, the utilization rate of a product, the loyalty of consumers to brands (or stores), and the attitude of consumers to products.

(2) The basis of industrial market segmentation. Some variables of subdivided industrial market are the same as those of subdivided consumer market, such as usage rate, brand loyalty, users' attitude towards products, etc.

In addition, the variables commonly used in subdividing the industrial market include end users, customer scale and so on.

2. Target market selection

The so-called target market is the market that the enterprise decides to enter, that is, the customer group that the enterprise intends to invest and serve. Enterprises have three choices when deciding how many sub-markets to serve, that is, when deciding their target market coverage strategy:

(1) Indifferent marketing (i.e. comprehensive marketing)

(2) Differentiated marketing (including selective specialization, product specialization and market specialization)

(3) Centralized marketing (i.e. market centralization)

In fact, the above three target market coverage strategies are the embodiment of three basic strategies in the marketing strategy of enterprise business departments. These three strategies have their own advantages and disadvantages. When choosing the target market coverage strategy, enterprises should consider the following five main factors, namely, enterprise resources, product homogeneity, market homogeneity, product life cycle stage and competitor's target market coverage strategy.