Marketing Communications

136 CHAPTER 4 TARGET GROUPS

Aft er segmenting the market, opportunities for each segment should be singled out. Th e

next stage in the process is targeting segments.^51 Th ere are two decisions here: how many

segments will the company target, and which segments are most attractive to that company?

Targeting strategies

Market concentration is used when the company chooses one segment and tries to be a market

leader within that segment. Market diff erentiation involves directing the marketing eff ort to

diff erent segments with diff erent marketing and communications strategies. Undiff erentiated

marketing is using the same strategies in all segments. Th ere are fi ve basic types of targeting

strategies.

z Concentration on one segment. A company chooses one segment (one product for one

market) and develops a marketing mix for that segment. Th is strategy has some positive

aspects. Th e company will be able to build up expertise and enjoy learning eff ects. On the

other hand, it will be dependent on a single segment (which could suddenly stop growing)

and vulnerable to competitors. For instance, Jaguar was a company concentrating on one

segment until it was acquired by Ford.

z Selective specialisation. A company chooses a number of segments that look attractive. Th ere

is no synergy between the segments, but every segment looks profi table. Activities in one segment

can compensate for other, slower-growing segments. For instance, Richard Branson started

with a music label (Virgin) which he sold while launching new services in diff erent segments:

travel (holidays, trains, fl ights and travel guides), entertainment (a new music label V2, Virgin

Megastores, books, radio and Internet service provision), telecoms (mobile and fi xed lines),

lifestyle (soft drinks, wines, cosmetics and fi tness clubs), energy (water, gas and electricity),

fi nance (credit cards, loans, insurance, etc.) and motoring (retailing of cars and bikes).

z Product specialisation. A company concentrates on one product and sells it to diff erent

market segments. For instance, a company can sell microscopes to companies, hospitals,

universities, schools, labs, etc.

z Market specialisation. A company concentrates on one market segment and sells diff erent

products to that group of customers, e.g. a company selling microscopes, oscilloscopes, etc.

to hospitals.

z Full market coverage. A company tries to target all customer groups with all the products

they need. For instance, General Motors makes cars (in diff erent classes), four-wheel-drive

cars, vans, agricultural machines, etc.

‘Wii Fit’ is one of a series of games launched by Nintendo focusing on socialisation and activities designed to appeal

to consumers who do not typically purchase video games. Looking to expand beyond family-oriented sports video

games such as ‘Wii Tennis’ and ‘Wii Golf ’, Nintendo launched in April–May 2008 (December 2007 in Japan) ‘Wii Fit’.

This game consists of a balance board and software containing 48 fitness training-related games and activities for

workouts at home. ‘Wii Fit’ stresses four main categories of physical activity – balance, aerobics, yoga and strength

training – and, while Nintendo executives are not billing the game as a replacement for exercise, they are positioning

it as a pastime that promotes a healthy lifestyle. Users can track their weight and training progress and receive

points for performing tasks using good form and increased intensity. The game allows users to measure their weight

and body-mass index, and guides them through activities such as yoga poses and muscle-toning exercises.

BUSINESS INSIGHT

‘Wii Fit’ looking for the non-typical purchasers of video games

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