MARKET TARGETING AND POSITIONING

WHAT IS TARGET MARKETING?

• EVALUATING EACH MARKET SEGMENT’S ATRACTIVENESS AD SELECTING ONE OR MORE SEGMENTS TO ENTER.

CRITERIA FOR EFFECTIVE TARGETING

• MEASURABLE• SUFFICIENT/SIZE• ACCESSIBLE/REACHABLE• DIFFERENTIABLE/IDENTIFIABLE• ACTIONABLE

measurable

• Size, purchasing power characteristics etc can be measured

Acessible

• Segments can be easily reached and served economically

Differentiable

• Segments are different and respond differently to different marketing mix elements

Sufficient /size

• Should be large and profitable enough to be served

• Should be the largest possible homogenous group worth going after.

TARGET MARKET SELECTION PATTERNS

• SINGLE-SEGMENTCONCENTRION• DIFFERENTIATED MARKETING• UNDIFFERENTIATED MARKETING• SELECTIVE SPECIALIZATION• PRODUCT SPECIALIZATION• MARKET SPECIALIZATION

SINGLE –SEGMENT CONCENTRATION

• FIRM CONCENTRATES ON A SINGLE SEGMENT AND GAINS COMPETITIVE ADVANTAGE BY SPECALIZING ITS PRODUCT, DISTRIBUTION ANDPROMOTION

• HAS STRONG KNOWLEDGE OF SEGMENT’S NEEDS• HAS STRONG MARKET PRESENCE

DIFFERENTIATED MARKETING

• FIRMS OPERATES IN DIFFERENT MARKET SGMENTS

• DESIGNS DIFFERENT PRODUCTS FOR EACH SEGMENT. Eg General motors, Gracekennedy

Undifferentiated marketing

• Firm goes after the entire market with one offer

• Appeals to the broadest number of buyers• Counterpart to standardization• usually sells at lower costs• Eg coca –Cola (drink market) and IBM

(computer market)

Selective specialization

• Firm selects a number of segments, each objectively attractive and appropriate

Market specialization

• Firm concentrates on serving needs of a particular customer group eg. Selling to university laboratories

Positioning defined

• The act of designing the company’s offering and image to occupy a distinctive place in the minds of target market

Developing and Communicating a Positioning Strategy

• Positioning According to Ries and Trout– Strengthen own current position– Grab an unoccupied position– De-position– Re-position– Product ladders

• Positioning According to Treacy and Wiersema– Value disciplines

• Product leader• Operationally excellent firm• Customer intimate firm

– Treacy and Wiersema propose that a business should follow four rules for success

1. Become best at one of the three value disciplines.2. Achieve an adequate performance level

in the other two disciplines.3. Keep improving one’s superior position in the chosen

discipline so as not to lose out to a competitor.4. Keep becoming more adequate in the other two

disciplines, because competitors keep raising customers’ expectations.

Developing and Communicating a Positioning Strategy

Positioning errors

• Under positioning• Over positioning• Confused positioning• Doubtful positioning

Underpositioning

• Buyers have only a vague idea of the brand• Brand is seen as just another entry in a crowed

market

overpositioning

• Buyers have too narrow an image of the brand• Important features may be missed

Confused positioning

• Company makes too many claims about the or change the brand positioning too often

Doubtful positioning

• Buyers find it hard to believe the brand based on prices, product, or manufacturer