1. Intensive single market
Choose a market segment to concentrate marketing. The target market is narrow and the risk is high. When other competitors enter, it will have a greater impact on the company. Many small companies often adopt this model due to limited resources. Some newly established companies may also use a market segment as a starting point for continued development and growth because they enter the market for the first time and lack production and operation experience. The single market concentration model makes the company’s business object single, and the company can concentrate its efforts on one market segment to gain a higher market share.
2. Selective specialization (multi-segment market)
This method requires selecting multiple market segments, each of which is objectively attractive and in line with the company’s goals and resources. However, there are few or no connections between the segments, but each segment has the potential to be profitable. This multi-segment market target is better than a single segment market target because it can disperse the company’s risks. Even if a certain segment loses its appeal, the company can still make profits in other segments.
3. Product specialization
Companies using this method concentrate on producing one product and sell it to all types of consumers. The enterprise has a wide market, which is conducive to getting rid of dependence on individual markets and reducing risks. At the same time, relatively concentrated production is conducive to exerting production skills to establish a good reputation in a certain product (basic variety). For example, microscope manufacturers sell microscopes to university laboratories, government laboratories and industrial and commercial enterprise laboratories. The company is prepared to sell different types of microscopes to different consumer groups, instead of producing other instruments that may be needed in the laboratory. Through this strategy, the company has established a high reputation in a certain product. If the product is replaced by a new microscopy technology, a crisis will occur.
4. Market specialization
Market specialization refers to serving specifically to meet the various needs of a certain consumer group, which helps to develop and utilize relationships with consumers, reduce transaction costs, and establish a good image among this type of consumers. Of course, under this model, once the purchasing power of this type of consumers declines, the company’s profits will be greatly affected. For example, the company can provide a series of products for university laboratories, including microscopes, oscilloscopes, Bunsen burners, chemical flasks, etc. The company has gained a good reputation by serving this consumer group specifically and has become a sales agent for various new products required by this consumer group. But if university laboratories suddenly have budget cuts, they will reduce the number of instruments they purchase from companies specializing in this market, which will create a crisis.
5. Complete market coverage
Complete market coverage means that companies want to meet the needs of various consumer groups with various products. Only large companies can adopt a complete market coverage strategy, such as IBM (computer market), General Motors (automobile market) and Coca-Cola (beverage market).