Practical Strategic Management by Eiichi “Eric” Kasahara

Author:Eiichi “Eric” Kasahara
Language: eng
Format: epub
Publisher: World Scientific Publishing Co. Pte. Ltd.
Published: 2013-07-14T16:00:00+00:00

Source: Kasahara (2013).

Figure 2.44. Marketing management integration of targeting and positioning.

Contingent Approach to Market Conditions

Marketing styles have been shifting from mass marketing to one-to-one marketing; this has been supported by technological developments in recent years, as markets are becoming more sophisticated and mature. Actually, a wide variety of choices and customized service options have been quite useful in differentiating from competitors in markets where customers have different and unique needs. An important issue in marketing decisions is to decide the extent to which there should be customization for each customer. The following points should be considered for selecting an appropriate marketing approach:

Customer distribution: Concentrated (limited number of large customers) vs. diverse (many small customers)

Needs quality: Homogeneous (similar needs) vs. heterogeneous (different needs)

If your business is situated in the upper-left area of Figure 2.45, where a large number of customers with similar needs exist, mass marketing would be an appropriate approach. In mass marketing, the process is simple; simply consider the market as a collection of customers who have homogeneous needs and prepare only one kind of positioning, and the set the marketing mix based on the positioning. If your business is in the lower-right area, where you have only a limited number of large sized customers who have unique needs, you should apply one-to-one marketing, which is to create unique solutions to each customer. For the upper-right area that comprises a relatively large number of customers who have different needs, segmentation marketing, which is to be proceeded through STP would be the appropriate approach.

The basic step in each style is as follows:

Segmentation marketing: Segmentation→Targeting→ Positioning+4Ps

One-to-one marketing: Targeting→Positioning+4Ps

Mass marketing: Positioning+4Ps

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