Strategy Plans

3) The major steps in the target market selection process are 1 identifying the appropriate targeting strategy. The strategy used to select a target market is affected by the target market characteristics, product attributes, and the organizational objectives and resources. There are three basic targeting strategies. They are undifferentiated target strategy which an organization defines an entire market for a particular product as its target market. Then there is the concentrated targeting strategy, which is a strategy …

…firm may increase sales in the aggreg! ate market through as differential strategy because its marketing mixes are aimed at more people. Also a company with excess production capacity may find a differentiated strategy advantageous because the sale of products to additional segments may absorb excess capacity. On the other hand, a differentiated strategy often demands more production process, materials, and people. Thus, production costs may be higher than with a concentrated strategy. ------------------------------------------------------------------------ **Bibliography**