Transcript Market Targeting and Strategic Positioning

Market Targeting and
Strategic Positioning
Ananda Sabil Hussein, Ph.D
Marketing is interesting
Marketing Strategy
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Marketing Strategy = market driven
To satisfy individual’s needs and wants
Business organizations have limitations to serve market
Segmentation
Marketing Targeting
• The Marketing Targeting Decision Identities the People or
Organizations in a Product-Market Toward Which a Firm
Directs Its Positioning Strategy Guided by an understanding
of:
•The product-market
•Its buyers
•Firm’s capabilities resources
•Competition
Market Segmentation
Strategies
• Traditional Approaches to Market
Segmentation
• Mass Marketing
• Differentiated Marketing
• Multisegment Approach
• Market Concentration Approach
• Niche Marketing
Trivia
• Can you think of a product that could be marketed effectively
using a mass marketing approach? If so, explain and justify
your answer. If not, what types of changes would have to be
made to the product to make it appropriate for a mass
marketing approach?
Emerging Approach to
Segmentatiom
• One-to-One Marketing
• Mass Customization
• Permission Marketing
Successful Segmentation
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Identifiable and Measurable
Substantial
Accessible
Responsive
Viable
MARKET TARGETING
STRATEGY
• The Marketing Targeting Decision Identities the People or
Organizations in a Product-Market Toward Which a Firm Directs Its
Positioning Strategy Guided by an understanding of:
•The product-market
•Its buyers
•Firm’s capabilities resources
•Competition
MARKET TARGETING
STRATEGY
• Core dimensions of market-driven strategy: deciding
which buyer’s to target and how to position the firm’s
products
• Effective targeting and positioning strategies are
essential in gaining and sustaining superior performance
Factors Influencing Targeting Decisions
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Stage of product – market maturity
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Extent of diversity in preferences
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Industry structure
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Capabilities and resources
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Opportunities to gain competitive advantage
Target Marketing Strategies
• Five basic strategies for target market
selection:
• (1) Single Segment Targeting
• (2) Selective Targeting
• (3) Mass Market Targeting
• (4) Product Specialization
• (5) Market Specialization
TARGETING IN DIFFERENT MARKET ENVIRONMENTS
 Emerging
Growing
Mature
Declining
Global
POSITIONING STRATEGY
• Deciding the desired perception/ association of an
organization/ brand by market target buyers…and
designing the marketing program to meet (and
exceed) buyers’ value requirements.
Positioning Strategy
• Process of creating favorable relative position:
• (1) Identification of target market
• (2) Determination of needs, wants, preferences and
benefits desired
• (3) Examination of competitors’ characteristics and
positioning
• (4) Comparison of product offerings with competitors
• (5) Identification of unique position
• (6) Development of a marketing program
• (7) Continual reassessment
The Perception or Association that Management Wants Buyers
to Have Concerning the Brand
Symbolic
Functional
SELECTING THE
POSITIONING
CONCEPT
Experiential
Positioning Error
• Under-positioning – customers have only vague ideas
about the company and do not perceive anything
distinctive about it
• Over-positioning – Customers have too narrow an
understanding of the company, product, or brand
• Confused positioning – Frequent changes and
contradictory messages confuse customers
• Doubtful positioning – claims made for the product or
brand are not regarded as credible
Class Exercise
• Pick out three brands from a particular industry. How are they
segmented and positioned? Which is the best in your view?
How would you evaluate each brand’s positioning strategy?
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