Five most important patterns of Traget Market Selection with examples

When a market finished its job of evaluating the different segments for their product size, qualities, growth and they found that they are compatible with the company's resources and objectives then next step is to go for selection of market segments.

The following are the five patterns of target market selection which was put-forward by D.F.Abell:-

1. Single Segment Concentration

When an organization concentrate on a single market segment. A company target small segment for the larger market share instead of concentrating on a larger market for small share in the market. The biggest advantage of single segment concentration is the company gain a vast knowledge about the particular segment's needs and preferences thus it can achieve a strong and concentrated market position in the particular segment and enjoy the economic benefits through specialization in production, distribution and promotion in the single segment of the market.

 For  example Apple Inc. who target mainly target the smart-phone market, BPB Publications specialized only in computer books etc.

2. Selective Segment Specialization

In selective segment specialization, the company may select various segment according to the company's resources and objectives. There may be similarities or no similarities among all the segment but each segment holds the strength to make a good amount of profit. The main advantages of this market segment is the firm can diversify the risk as it has not been concentrated on a single segment in the market, if one segment facing the loss the firm can overcome the loss from the another segment.

For example Samsung producing smart-phones, television, refrigerator, washing machine etc. these are are the different types of product and focuses on the different market segments so than even  one segment becomes unproductive the firm can still continue to earn its desirable profit from other segments of market.

3. Product specialization

In product specialization, the firm concentrate on making certain product targeting to multiple costumers. This is the most common target market strategies used by the companies. For Example Horlicks which produces a malted milk hot drinks for several segment of the market, it produces horlicks for growing children, woman as well as old people, thus it make same product with little differentiation to target multiple segment of the market and it does not produces other products it concentrate on a single product. The advantage of this target market is product recognition among the consumer.

4. Market Specialization

In market specialization the firm concentrate on a particular market segment and satisfy all the needs of particular target market. In  simple words a single firm produces various products keeping in mind a particular target market to satisfy the needs and preference of that particular target market.

For example a firm produces all necessary home appliances such as television, refrigerator, fans, micro ovens for the high income group people, in this the firm gins a high reputation among the high income group peoples. The market chosen here is high income group consumer and it become market specialized in that segment.

5. Full Market Coverage

When a firm target to all consumers with their all product requirement of all groups of consumers, here the marketers operate the whole market and takes care of need and preferences of the whole market. A full market coverage could assume two forms  undifferentiated market and differentiated market. For example IBM and HP. They cover the whole market based on two methods-

(a) Undifferentiated Market-  It assumes the whole market as one segment and offer a single market for whole. It mainly focuses on the need of the consumers, and design its product in such a way that the product could satisfy the large number of the consumers. For example the coca cola produces drink with similar product packaging , taste and offers the whole market assuming that it would suit everyone.

(b) Differentiated Market- In this the firm target the whole market but does not assumes the whole market as a single segment, it design the same product with some differentiation for different segment of the market. for example HP produces many hardware product with different cost, features and benefits. This type of marketing requires a huge cost so it is not easy for any firm to adopt this kind of marketing.