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1、Chapter 5CustomerCustomer-Driven Marketing Strategy:Driven Marketing Strategy:Market TargetingMarket TargetingQ Q1 1:What is the target market:What is the target market?Target MarketTarget MarketA target market is a set of buyers who share common needs or characteristics that the company decides to
2、serve.Market targeting is focus strategy.Q Q2 2:How to identify attractive market How to identify attractive market segments?segments?Evaluating Market SegmentsEvaluating Market SegmentsSegment size and growthSegment structural attractivenessCompany objective,capabilities and resourcesDoes market se
3、gmentation mean to divide the whole market equally?Does market segmentation mean to divide the whole market equally?Segment structural attractivenessFigure 7.1 Porters Five Forces ModelQ Q3 3:How to select target markets?:How to select target markets?Target Marketing strategiesTarget Marketing strat
4、egiesFigure 7.2 Target marketing strategiesUndifferentiated(mass)marketingDifferentiated(segmented)marketingConcentrated(niche)marketingMicromarketing(local or individual marketing)Selecting Target Selecting Target MarketsMarketsUndifferentiated marketingtargets the whole market with one offer.Mass
5、marketingFocuses on common needs rather than whats differentSelecting Target MarketsDifferentiated marketing targets several different market segments and designs separate offers for each.Goal is to achieve higher sales and stronger positionMore expensive than undifferentiated marketingLOral Brand P
6、yramid in ChinaLancmeLOral&VichySelecting Target MarketsSelecting Target MarketsConcentrated marketing targets a large of a smaller market.Limited company resourcesKnowledge of the marketMore effective and efficientSelecting Target MarketsMicromarketing is the practice of tailoring products and mark
7、eting programs to suit the tastes of specific individuals and locations.Local marketing Individual marketingNike By YouExclusive custom sneakersColorsStylingsPatternsMaterialsLogos Q Q4 4:How to choose appropriate :How to choose appropriate targettarget-marketing strategy?marketing strategy?Choosing a Target Marketing StrategyCompany resourcesProduct variabilityProduct life-cycle stageMarket variabilityCompetitors marketing strategiesTHE END