Target Marketing• Target Market – Consists of a set of buyers who share common needs or characteristics that the company decides to serve. – The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond
Criteria for Targeting: 9 W’s• Who buys our product?• Who does not buy it?• What need or function does it serve?• What are customers buying to satisfy the need for which our product is targeted?• What price are they paying?• When is the product purchased?• Where is it purchased?• Why is it purchased?
FACTORS CONSIDERED IMPORTANT IN THE SELECTION OF TARGET MARKET STRATEGY• 1. Company’s Resources• 2. Product Homogeneity• 3. Product Stage in the Life Cycle• 4. Market Homogeneity• 5. Competitive Marketing Strategy
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
Target MarketingChoosing a Market-Coverage Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies
Strategies of Target Marketing• Selecting Target Market Segments – Undifferentiated (mass) marketing – (A company’s attempt to appeal to the whole market with a single basic marketing strategy intended to have a mass appeal.) – Differentiated (segmented) marketing – (a company’s attempt to appeal to two or more well defined market segments with a marketing strategy tailored to each segment) – Concentrated (niche) marketing – (a company’s attempt to appeal to one well defined market segment with one tailor made marketing strategy.) – Micromarketing (local or individual)
Positioning is the actof designing thecompany’s offeringand image to occupy adistinctive place in thetarget market’s mind.
Positioning• Positioning: – The place the product occupies in consumers’ minds relative to competing products. – Typically defined by consumers on the basis of important attributes. – Involves implanting the brand’s unique benefits and differentiation in the customer’s mind. – Positioning maps that plot perceptions of brands are commonly used.• Product’s Position - the place the product occupies in consumers’ minds relative to competing products; i.e. Volvo positions on “safety”.• Marketers must: – Plan positions to give products the greatest advantage – Develop marketing mixes to create planned positions
Bases for Positioning• Features: physical traits and performance• Benefits : feviquick, nerolac paint, fairglow soap• Usage:- chawanprash for body resistance, pulsur for specific area• Parentage:- sony vaio, tata indica, Fiat Palio• Manufacturing process: Fab India Hand Crafted• Ingredients:- 100% cotton, 100% wool made• Endorsement:- Lalita ji surf add, sachin boost secret of energy• Comparison:-• Pro-environment: canon made from recycled material• Product class:- dove as moisturizer not as toilet soap, pears as glycerin soap• Price/ quality:- Zenith computers “ multinational quality, Indian price”• Country or geographic area:- German engineering, banarsi sari
Positioning must cover• Who am I? ( the identity, family)• What am I ? ( the functional capabilities• For whom am I? ( whom do I serve best)• Why me? ( why consumer should choose me and not the other alternatives)
How many differences to promote as positioning• A USP of all product• Lux “ beauty soap of female film stars”• Promise toothpaste “ clove protection for teeth”• “ best quality” ,• “most advanced”• “Best service”• “Lowest price”
Differentiation and Positioning• 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
Positioning Strategies• Product Attributes & Benefits, Problem Solutions• Colgate is positioned on fresh breath. Decay prevention and taste.• Coseup fresh breath, cosmetic benefits• Promise clove oil and gum care• Price & Quality• Nirma washing powder quality product at low price• Zenith computer value for money• Omega,rolex, mercedes,rolls royace higher price• Specific Use, occasion & time• Vicks vapo rub childs cold at night• Iodex for sprain and muscle pains• Burnol for burns• Dettol antiseptic lotion Positioning by corporate identity tata, sony, godrej and seiko• Positioning by product category• Maruti maruti omni van, budgeted cars• Seven up fresh cleen taste, thirst quenching• Rajdoot rough & tuff• Dove cleansing moisturiser
Positioning Strategies• Against Other Products• Product User• Dabur chavanyaprash ayurvedic tonic for all as ages• Zndu chawanyaprash for families with small children to build resistance• Jhonson & jhonson for babies• Against a Competitor
POSITIONING STRATEGIES• Identifying possible competitive advantages• Differentiation can be based on – Products – Services – Channels – People – Image – benefits
Product Differentiation• Form- size, shape or physical structure• Features- supplement to basic function.• Performance Quality-the level at which the product’s primary characteristics operates.• Conformance Quality- the degree to which all the produced units are identical and meet the promised specifications.• Durability- a measure of the product’s expected operating life under natural or stressful conditions.• Reliability- a measure of the probability that a product will not malfunction within a specified time period.• Reparability- a measure of the ease of fixing a product when it fails• StyleQuality can be communicated by choosing physical signs and cues
Image Differentiation• Image is the way the public perceives the company or its products.• Identity is the way a company aims to identify or position itself or its products.• Symbols, colors, slogans, atmosphere,• Events and employee behavior
Choosing the right competitive advantage• How many differences to promote? • Unique selling proposition • Several benefits• Which differences to promote? Criteria include: • Important • Distinctive • Superior • Communicable • Preemptive • Affordable • Profitable
Developing and communicating a positioning strategyAll products can be differentiated to some extent. But not all differences are meaningful or worthwhile. A difference is worth establishing to the extent that it satisfies the following criteria :• Important : The difference delivers a highly valued benefit to a sufficient numbers of buyers.• Distinctive : The difference is delivered in a distinctive way.
Developing and communicating a positioning strategy• Superior : The difference is superior to other ways of obtaining the benefit.• Preemptive : The difference cannot be easily copied by competitors.• Affordable : The buyer can afford to pay for the difference.• Profitable : The company will find it profitable to introduce the difference.
Choosing a positioning strategy• Value propositions ( the whole cluster of benefits the company promises to deliver )represent the full positioning of the brand• Possible value propositions: – More for More – More for the Same – More for Less – The Same for Less – Less for Much Less
ImportantProfitable Distinctive Differences Worth EstablishingAffordable Superior Preemptive
Using Product Descriptorsfor Product Differentiation
Steps to Choosing and Implementing a Positioning Strategy• Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation.• Step 2. Selecting the right competitive advantage.• Step 3. Effectively communicating and delivering the chosen position to the market.
Developing CompetitiveDifferentiation Product Service Areas for Competitive Differentiation Personnel Image