Discuss alternative strategies for selecting target markets. Marketers select target markets using three different strategies: undifferentiated targeting, concentrated targeting, and multisegment targeting. An undifferentiated targeting strategy assumes that all members of a market have similar needs that can be met with a single marketing mix. A concentrated targeting strategy focuses all marketing efforts on a single market segment. Multisegment targeting is a strategy that uses two or more marketing mixes to target two or more market segments.
- Form a team with two or three other students. Create an idea for a new product. Describe the segment (or segments) you are going to target with the product and explain why you chose the targeting strategy you did.
- Go to the Web sites of JCPenney, What are the major differences? Which site is more designer focused, and which is more brand focused? Which company’s approach do you think will appeal more to the “Holy Grail” target market of 25- to 35-year-old women?
The correct answer and explanation is:
1. New Product and Target Market Strategy
Product Idea: A line of customizable eco-friendly smart water bottles. These water bottles feature built-in hydration tracking, temperature control, and solar-powered charging capabilities. Customers can personalize the bottle with color options, custom messages, and additional accessories like Bluetooth speakers or UV sterilization caps.
Target Segment(s):
- Eco-conscious consumers: These are individuals aged 20-40 who prioritize sustainability and environmental friendliness. They are interested in reducing waste and making responsible purchasing decisions.
- Tech-savvy millennials and Gen Z: These customers embrace innovation and are keen on products that integrate technology with everyday life.
Targeting Strategy: Multisegment Targeting
We will use a multisegment targeting strategy, addressing two different segments with tailored marketing mixes. For the eco-conscious consumers, the marketing messages will focus on sustainability, reducing plastic waste, and the eco-friendly aspects of the bottle. For the tech-savvy millennials and Gen Z, we will highlight the smart features of the bottle, such as hydration tracking, temperature control, and tech-driven customizations. This approach ensures we meet the needs of both segments without being overly generalized.
2. JCPenney Website Comparison
Major Differences:
- JCPenney’s Website: JCPenney’s site is focused on a broad consumer base with a diverse product range, emphasizing sales, promotions, and affordability. The site frequently promotes discounts and deals, creating a budget-conscious atmosphere.
- Nordstrom’s Website: Nordstrom’s website has a more sophisticated and polished design. It focuses heavily on high-quality designer goods and exclusive brands. The layout is clean and emphasizes luxury and fashion-forward items, with easy navigation for premium customer service and personalized shopping experiences.
Designer vs. Brand Focused:
- JCPenney: This site is more brand-focused. It highlights various well-known brands and offers a range of products with a focus on discounts and value. It targets a broad audience and appeals to customers who prioritize deals over brand prestige.
- Nordstrom: This site is more designer-focused. It caters to customers looking for high-end designer brands and focuses on delivering an upscale, personalized shopping experience.
Appeal to 25- to 35-Year-Old Women:
The “Holy Grail” target market of women aged 25-35 is likely to gravitate towards Nordstrom’s approach. This demographic tends to prioritize quality, exclusivity, and a curated shopping experience. Nordstrom’s focus on designer brands and high-end fashion aligns with the preferences of women in this age range, who are often establishing their careers and have the disposable income to spend on premium products. JCPenney’s more budget-conscious and brand-driven approach may not resonate as strongly with this segment, as they might seek more aspirational and designer-focused options.