Targetting and positioning 2


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Targetting and positioning 2

  1. 1. Product Strategy Promotion Strategy Price Strategy Distribution Strategy Market Target Positioning Strategy Targeting and Positioning
  2. 2. The Complete Process Market Segmentation Identify and describe market segments Market Targeting Evaluate segments and decide which to go after Market Positioning Design a product or service to meet a segment’s needs and develop a marketing mix that will create a competitive advantage in the minds of the selected target market
  3. 3. Factors Influencing Targeting Decisions  Stage of product – market maturity  Extent of diversity in preferences  Industry structure  Capabilities and resources  Opportunities to gain competitive advantage
  4. 4. Emerging Market Buyer Diversity  Segmentation limited due to similarity of buyers’ preferences Industry Structure  Typically small new organizations  Limited access to resources Capabilities and Resources  Unique benefit (differentiation) strategy rather than low-cost  First-mover advantage Targeting Strategy  Single target or a few broad segments
  5. 5. Growth Market Buyer Diversity  Segments should exist Industry Structure  Numerous competitors Capabilities and Resources  Survival requires aggressive actions by firms that seek large market positions  Otherwise select one or a few market segments
  6. 6. Mature Markets Buyer Diversity  Segmentation essential for competitive advantage Industry Structure  Intense competition for market share  Emphasis on cost and service, and pressures on profits Capabilities and Resources  Management’s objectives: cost reduction, selective targeting, product differentiation Targeting Strategy  Deciding which segment to serve  Firms pursuing extensive targeting strategies may decide to exit from certain segments
  7. 7. Global Markets Global Reach and Standardization  Identify market segments that span global markets and serve these needs with global positioning strategies Local Adaptation  Consider requirements of domestic buyers  Buyers’ needs and preferences affected by social, political, cultural, economic, and language differences Industry Structure  Restructuring, acquisitions, mergers, and strategic alliances altering industries and competition Targeting Strategy  Targeting a single country, regional (multinational) targeting, or global targeting
  8. 8. MARKET TARGET POSITIONING EFFECTIVENESS POSITIONING STRATEGY How well management’s positioning objectives are achieved for the market target POSITIONING CONCEPT The desired positioning of the product (brand) by targeted buyers The combination of marketing actions used to communicate the positioning concept to targeted buyers STRATEGIC POSITIONING INITIATIVES
  9. 9. Possible Value Propositions
  10. 10. How Positioning Works  Objective  Match the organization’s distinctive capabilities with the customer value requirements for the market target (How do we want to be perceived by targeted buyers?)  Desired result  Gain a relevant, distinct, and enduring position by the targeted buyers that they consider important.  Actions by the organization  Design and implement the positioning strategy (marketing program) for the market target.
  11. 11. Positioning  Locating a brand in consumers’ minds over and against competitors in terms of attributes and benefits that the brand does and does not offer  Attribute or Benefit  Quality and Price  Use or User  Competition
  12. 12. Criteria for Targeting: W’s  Who buys our product?  Who does not buy it?  What need or function does it serve?  What price are they paying?  When is the product purchased?  Where is it purchased?  Why is it purchased?