Post on 06-Apr-2018
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MarketingManagementSession 4
Deepak Sundrani
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MARKET TARGETTING
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M arket T argetting
Consists of evaluating eachmarket segments attractiveness andselect one or more market segmentsto enter.
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P orters 5 Force model
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M arket T argetting
1) Undifferentiated M arketing(mass marketing) example : E lectricity, Steel
2) Differentiated marketing(segment marketing) , multiple brands
3) Concentrated marketing(niche marketing) small segments
4) M icromarketing(local marketing and individual marketing)
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Competitive strategies
1) Low cost2) Differentiation
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P ositioning
P roduct position T he way the product is defined by
consumers on important attributes theplace the product occupies in consumersmind relative to competing products.(example Hayabusa, Hero Honda,)
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E xamples
M aggi noodles ( 2 minutes)
Dominos pizza ( delivery in30 minutes, so order home delivery)
P izza hut (eat there)
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P erceptual P ositioning map
Shows consumer perceptions of their brand versus competing products onimportant buying dimensions.
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Data for perceptual positioning map
for N
anoName of product Price (on road) Efficiency (km/litre)N ano 1,30,000 22
M aruti 800 2,67,000 18
A lto 2,85,000 17
Indica 4,00,000 16
K arizma 84,000 28
P ulsar 220 D T S Fi 85,000 24
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P erceptual positioning map (for N ano)
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Steps in
Differentiation and positioning taskStep 1 Identify set of possible customer value differences that provide
competitive advantages uponwhich to build a position
Step 2 - Choosing the right competitive
advantageStep 3 - Selecting an overall positioning
strategy.
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How can a company
differentiate itself ?1) P roduct differentiation features, performance,style and design* , example Indica car morecar per car, Colgate fights tooth decay, R eva,P romise toothpaste, K inetic Honda electric start.
2) Service differentiation speed, convenience,careful delivery Dominos pizza 30 minutes
3) Channel differentiation Direct channel /superior channel A mazon.com, Caterpillar
4) P eople differentiation L& T 5) Image differentiation R oyale, 5 star hotels
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P roduct style and DesignStyle describes appearance of product.
Styles can be eye-catching. A sensational style may grab attention and
producing pleasing aethetics, but it doesnot necessarily make the product performbetter. It is skin-deep.
Design is more than skin-deep it goes tothe very heart of the product. G ood designcontributes to a products usefulness aswell as its looks. K now Customer needs
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How can a company
differentiate itself ?1) P roduct differentiation features, performance,style and design , example Indica car more car per car, Colgate fights tooth decay, R eva,P romise toothpaste, K inetic Honda electric start.
2) Service differentiation speed, convenience,careful delivery Dominos pizza 30 minutes
3) Channel differentiation Direct channel /superior channel A mazon.com, Caterpillar
4) P eople differentiation L& T 5) Image differentiation R oyale, 5 star hotels
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W hich differences to promote ?
1) Important2) Distinctive
3) Superior 4) Communicable5) N ot easily imitable
6) A ffordable7) P rofitable
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Selecting an overallpositioning strategy
Value proposition the full mix of benefitsupon which the brand is differentiated.
It is the answer to customers question :W hy I should buy your product?
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P ossible value propositions
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1) M ore for M ore M ercedes2) M ore for the same Lexus compared
features of competitor M ercedes (costly)3) Same for less W almart4) Less for less Low cost A irlines
5) M ore for less M oser Baer DVD ( 3 moviesfor R s. 45) , Bajaj A uto, Cox and K ings
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W ednesday 6 July 2011,
Sakal, page 12
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Positioning Statement
Statement that summarises company or brand positioning.
Form /T
emplate :To [target segment and need]our (brand)
is (concept)that (point of difference)
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P ositioning statement for N ano
To those customers who own 2 wheelersbut want a car
our N
anois an affordable car that gives the advantages of 4 wheeler at
a price lower than any other car.
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