Consumer Behavior- 2015 - Rajesh Satpathy

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

Targeting:

After segmenting the market based on the different groups andclasses, you will need to choose your targets. No one strategy willsuit all consumer groups, so being able to develop specificstrategies for your target markets is very important.

There are three general strategies for selecting your target markets:

o Undifferentiated Targeting: This approach views the market asone group with no individual segments, therefore using a singlemarketing strategy. This strategy may be useful for a business orproduct with little competition where you may not need to tailorstrategies for different preferences.

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

Examples:

Petrol, Diesel, Soft Drinks, White Bread

Or

Incredible India

Sending the same promotional message like Incredible India Campaign to everyone…

Promoting the city Agra as a historic destination by placing ads in widely read newspapers or TV

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

o Concentrated Targeting: This approach focuses on selecting aparticular market niche on which marketing efforts are targeted.Here your firm is focusing on a single segment so you canconcentrate on understanding the needs and wants of thatparticular market intimately.

Small / Big firms often benefit from this strategy as focusing on onesegment enables them to compete effectively against larger firms.

Example:The manufacturer of Rolex watches has chosen to concentrate on the luxury segment of the watch market, where as Manufacturer of Maxima Watches focuses on price sensitive customers to sell their watches.

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

o Multi-Segment Targeting: This approach is used if you need tofocus on two or more well defined market segments and want todevelop different strategies for them. Multi segment targetingoffers many benefits but can be costly as it involves greater inputfrom management, increased market research and increasedpromotional strategies.

Examples: Maruti Suzuki, Tata Motors, Audi

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

Positioning:

Positioning is developing/putting a product and the brand image inthe minds of consumers. It can also include improving a customer’sperception about the experience they will have if they choose topurchase your product or service.

The business can positively influence the perceptions of its chosencustomer base through strategic promotional activities and bycarefully defining your business’ marketing mix.

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

Effective positioning involves a good understanding of competingproducts and the benefits that are sought by your target market. Italso requires you to identify a differential advantage with which itwill deliver the required benefits to the market effectively againstthe competition.

Business should aim to define themselves in the eyes of theircustomers in regards to their competition.

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

Case- 1

Segmentation :

Spice Jet focuses on price sensitive consumers who will give upmeals and assigned seating for low prices. In contrast, most airlinesfollow the differentiated strategy: They offer high priced tickets tothose who are inflexible in that they cannot tell in advance whenthey need to fly and find it impractical to stay over aSaturday. These travelers- usually business travelers- pay high faresbut can only fill the planes up partially. The same airlines then sellsome of the remaining seats to more price sensitive customers whocan buy two weeks in advance and stay over.

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

Case- 2

Targeting :

While McDonald’s has a great reputation for fast, consistentquality, family friendly restaurants, it would be difficult to convinceconsumers that McDonald’s now offers gourmet food. Thus,McDonald’s would probably be better off targeting families insearch of consistent quality food in a nice, clean restaurant.

TARGETING & POSITIONING AND THE IMPLICATION ON MARKETERS

Case- 3

Positioning :

Apple Computers has chosen to position itself as a maker of user-friendly computers, smart phones and Tab PC. Thus, Apple hasdone a lot through its advertising to promote itself, through itsunintimidating icons, as a devices for “non-techies.”

Thank You!