Positioning 2

8/6/2019 Positioning 2

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Copyright Atomic Dog Publishing, 2002

Target Marketing &

Positioning


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Chapter Objectives Analyze and evaluate target market

Select the target market-Targetmarketing Strategies

Positioning

Re-positioning


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Evaluating Market Segments

Two Issues

Market Attractiveness

Companys capability to Compete in thesegment


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Eg.Segmenting the market for Ready to

drink beverages( RTD)s - three segment

profiles

Segment 1 Young female socialites

Segment 2 Young male professionals Segment 3 Married females with

younger children


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Market Attractiveness Market Factors like Segment size,

growth rate , Profitability & Price

sensitivity

Bargaining power of suppliers &

customers

Barriers to entry & exit to market

segment


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Market Attractiveness Competitive factors like nature of

competition, new entrants, Competitive

differentiation

Political, social, economic

environmental factors


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Companys capability Exploitable marketing Assets

Cost advantage Technological edge

Managerial capabilities and commitment


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Target Market Strategies

Undifferentiated Marketing (Mass Marketing)One

product, one plan to one basic market.

Concentrated MarketingOne product/plan to one group

of consumers.

Differentiated Marketing (Multiple Segmentation)

Appeals to two or more market segments with a differentplan for each.

Customized Marketing (Customer to Customer Basis)-

Each customer being treated differently on an

individual basis.


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Contrasting Target Market Approaches

Undifferentiated Marketing (Mass Marketing)

The firm tries to reach a wide range of consumers

with one basic marketing plan. These consumers are

assumed to have a desire for similar goods and

service attributes. One product for everybody.

Concentrated Marketing The firm concentrates

on one group of consumers with a distinct set of needs

and uses a tailor-made marketing plan to attract this

single group. One product to one market niche.

Differentiated Marketing (Multiple

Segmentation) The firm aims at two or more different

market segments, each of which has a distinct set of

needs, and offers a tailor-made marketing plan for

each segment. Two or more products to two or

more groups.


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Undifferentiated Marketing

(Mass Marketing)

No strong difference in customer

characteristics

Single marketing mix for the whole

market

Absence of segmentation

Eg. Energy and postal services


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Concentrated Marketing

Niche Marketing

It is a focused marketing , where a

firms R & D focus on the needs &

wants of one set of customers.

Eg. Jaguar, Porche

Eg. A specialist holiday company Saga

focus on people over 50s with products

like financial services


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Differentiated Marketing A multi-segment targeting approach

different marketing mix for different

target segments; Eg. Airlines

BMW

Colgate Pepsi

Rolex


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Customized Marketing For customers with unique requirements and

with sufficient purchasing power.

Eg. Service providers like Marketing research& Advertising agencies, Industrial products

like locomotives

Car companies like Audi, Mercedes, BMW,

Renault have this capacity

Dell computers taking orders from internet.


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Positioning The chapter describes the process of planning a target

market strategy.

It examines alternative demand patterns and segmentation

bases for both final and organizational consumers.

It explains and contrasts undifferentiated marketing (mass

marketing), concentrated marketing, and differentiated

marketing (multiple segmentation).

It shows the importance of positioning in developing a

marketing strategy.

It discusses sales forecasting and its role in target

marketing.


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Advantages of Target Marketing Get useful information about be the most profitable

segment

Company can focus maximum resources on thatparticular segment

Help in devising accurate sales projection charts

Market segments that are less profitable can eitherbe completely scrapped, or if their potential value is

high they can be targeted with more intensity It is a necessary marketing tool for the promotional

activities undertaken by any company.


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Positioning It is the choice of target markets (where

the company wishes to compete) and

differential advantage( how the

company wishes to compete)

The objective is to create and maintain

a distinctive place in the market for acompany and its product


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Differential advantage Giving target customer something batter than the

competitors offer.

Product-Features and benefits-Apple, Intel, BMW

Price-Superior value for money- Aldi, Lulu, Wal-Marts

Promotion-unique valued images ( Advertising) orsuperior service (Sales people)-Perfumes like

Channel, Givenchy Distribution-customer convenience-Tesco, Radisson

SAS hotel at Manchester airport


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Perceptual Mapping A useful tool in determining the position

of a brand in the market place

It is a visual representation of consumerperceptions of the brand and itscompetitors using attributes that areimportant to customers.

Eg. For supermarkets-Two dimensions

Price & Width of Product range


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Key to successful positioning Clarity

Eg. BMW-The ultimate driving machine

Wal-marts-Low price, Always

Consistency

Eg.Gillette- The best a man can get

LOreal-Because youre worth it.

Credibility

Eg. Toyota, Honda-Lack of credibility as a up-market brand-So For topof range cars-simply Lexus , not Toyota-Lexus, Also Just Acura forHonda.

Competitiveness Apple iPod, Samsung-Flat screen TV

Michelin used 4 C framework in positioning to become the marketleaders in Tyres.


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Re-Positioning Changing target markets or products

differential advantage due to changing

customer tastes or poor sales performance. Eg. IBM moving away from PC

manufacturing( sold to Lenova) to software &

services

Mercedes Benz to face Toyotas competition

(Lexus) repositioned product and target

markets


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Conclusion Positioning strategy should be base on

Clear choice of target markets( market

attractiveness and company capability)

Differential advantage( attributes and

choice criteria)

Positioning 2

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