Targeting & Positioning
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This document discusses targeting and positioning in marketing. It defines targeting as identifying consumer groups likely to purchase specific goods and services. After market segmentation, companies must select target markets. The document outlines evaluating market segments based on size, growth, and firm objectives. It also describes limited and full market coverage targeting strategies. Positioning is designing a company's offering and image to occupy a distinctive place in customers' minds. The document discusses various positioning strategies and differentiating products through attributes, price, usage, channels, and image. It provides the procedure for positioning as identifying competitors, determining perceptions, analyzing customer preferences, and monitoring positions.
Targeting & Positioning
- 1. TARGETING GROUP MEMBERS: BILTU PALLABI GOVINDA ANUPAM HUBERT JAYASHREE AFSATH ASHWINI 1 POSITIONING &
- 2. What is TARGETING? Targeting is a broad term that is used to describe the process of identifying groups of consumers who are highly likely to purchase a specific goods & services. After segmenting the market based on the different groups and classes, we need to choose our targets. 2
- 3. Procedure of TARGETING A well defined target market is the first element to a marketing strategy. Once the distinct customers have been identified a marketing mix strategy of product, distribution, promotion & price can be built to satisfy the target market. The process are: 1. Evaluating Market Segments To Target, 2. Selecting The Target Market (Targeting Strategies) 3
- 4. Evaluating Market Segments To Target A firm must evaluate the potential of the segment & also its own ability to tap it. Marketers need to ensure that the organization objectives are fulfilled while serving a particular segment of the market. A firm must look at three major factors: SEGMENT SIZE & GROWTH, SEGMENT STRUCTURAL ATTRATIVENESS, COMPANY OBJECTIVES & RESOURCES. 4
- 5. 5 SEGMENT SIZE & GROWTH: Segmentation analysis requires predicting demand for each component of a product market rather than for the product market as a whole. The sum estimates for each segment should be equal to the estimate for the entire product. SEGMENT STRUCTURAL ATTRACTIVENESS: Company also needs to examine major structural factors that affect long run segment attractiveness. A segment may be less attractive if it contains powerful suppliers who can control prices or reduce the quality or quantity of ordered goods & services. COMPANY OBJECTIVES & RESOURCES: Even if a company has the right size & growth, is structurally attractive, the company must consider its own objectives & resources in relation to that segment.
- 6. Targeting Strategies : After evaluating different segments the company must now decide which & how many segments to serve. This is the problem of target market selection. Alternative segments targeting strategies or types can be classified into two parts: LIMITED COVERAGE MARKET TARGETING, & FULL MARKET COVERAGE TARGETING. 6
- 7. Limited Market Coverage Targeting 7 M1 M2 M3 M1 M2 M3M1 M2 M3 M1 M2 M3 P1 P2 P3 P1 P2 P3 P1 P2 P3 P1 P2 P3 SINGLE SEGMENT PRODUCT SPECIALISATION MARKET SPECIALISATION SELECTIVE SEGMENT
- 8. SINGLE SEGMENT CONCENTRATION : Company may select single segment. The firm enjoys operating economies through specialising its production, distribution,& promotion. SELECTIVE SEGMENT : Here the firm selects a number of segments, each objectively attractive & appropriate. There may be little or no synergy among the segments, but each segment promise to be a money-maker. It diversify the firm’s risk. PRODUCT SPECIALISATION : Here the firm Specialises in making a certain product that it sells to several segments. An example would be microscope manufacturer that sells microscopes to university, laboratories, govt.bodies,etc MARKET SPECIALISATION : Here the firm concentrates on serving many needs of a particular customer group. The firm gains a strong reputation in serving this customer group. 8
- 10. 10 Undifferentiated Marketing: In UM, The firm ignores market segment differences and goes after the whole market with one market offer. The classic example for this is of soft drinks. Differentiated Marketing: In DM, the firm operates in several market segments and design different programmes for each segment. For example, General Motors does this when it says that it produces car for every “pursue, purpose, & personality”. Concentrated Marketing: A third market- coverage is concentrated marketing related especially in appealing when company resources are limited. The business will identify a specific group of consumers that is highly likely to generate revenue to enjoy high profit.
- 11. What is POSITIONING? Positioning is the platform for the product or brand. It facilitates the brand to get through to the target consumer. “Positioning is the act of designing the company’s offering & image to occupy a distinctive place in the target market’s mind.”- PHILIP KOTLER 11
- 12. IMPORTANCE OF POSITIONING 12 Putting Product Into Pre Determined Orbit Connects Product Offering With Target Market Product Cannot Be “Everything To Everyone” Brand Seeks A Locus In Space Through Positioning Providing Competitive Advantage Better Serving & Covering The Market
- 13. POSITIONING STRATEGIES : Attribute Positioning- Using one or more product attributes, features, or benefits that the brand can deliver better than its competitors. Price-quality Positioning- A brand can choose to occupy a distinct position on price-quality spectrum. Use-application Positioning- Here product is positioned by how it is to be used or applied. Brand Endorsement Positioning- Unlike the previous strategy where company name is used, in this case a successful brand is used as an endorser of a new entry. Benefit Positioning- Products are bought for their benefits. It helps in choosing unique, not-yet offered benefit to position the brand. 13
- 14. Usage& Use Time Positioning- A brand may choose to pre-empt a particular usage or usage time for the positioning purposes. Category Positioning- This is usually recommended when exciting product category is overcrowded& brand is difficult to differentiated. Competitive Positioning- This is done by making direct reference to competition & establishing clinching benefit in favour of brand in question. Product User Positioning- This approach is associated with particular type of user. Product Class Positioning- Positioning with respect to product class involves association with a specific group of products . 14
- 15. PRODUCT DIFFERENTIATION STRATEGIES In marketing differentiation is the process to distinguish the differences of a product or offerings from others, to make attractive to a particular target market. These strategies are followed to differentiate the products: PRODUCT DIFFERENTIATION SERVICE DIFFERENTIATION PERSONNEL DIFFERENTIATION CHANNEL DIFFERENTIATION IMAGE DIFFERENTIATION 15
- 16. PROCEDURE OF POSITIONING 16 COMPETITOR’S IDENTIFICATION DETERMINE HOW COMPETITORS ARE PERCEIVED & EVALUATED DETERMINING THE COMPETITOR’S POSITION ANALYSING THE CUSTOMER PREFRENCES MAKING THE POSITIONING DECISION MONITORING THE POSITION