This document discusses targeting and positioning as the final steps in the STP (Segmentation, Targeting, Positioning) marketing process. It provides an overview of how companies evaluate market segments to select the most desirable ones to target based on criteria like segment size, growth potential, and profitability. It also discusses how companies evaluate the fit between a segment and their own goals, resources, and competencies. Finally, it introduces two frameworks - the BCG matrix and GE model - that can be used to graphically evaluate segment attractiveness and fit to help with targeting decisions.
Introduction to Marketing - Session 2 at ITM, Mumbai. Includes:
Targeting
What is good marketing research?
Marketing research Questions
Types of information
Types of market research
Market research summary
Test Market
Define Target Audience
Estimate market potential
Analyze market share/share of customer
Track competitors
Identify market characteristics & trends
Analyze sales data
Sales forecasting: Existing / new products
Product
• Product Strategy
• Product Essentials
• Features and Benefits
• Classifying products
• Product line and mix
• Branding
• Packaging and LabellingTrademarks
Positioning and Brand Building
• The Art of Positioning is Marketing
• Positioning the game of Mind and Heart
• Brand is a Promise
• Brand is owned by Customers
• Understanding Brand Drivers
• Brand Attributes
• Brand Architecture
• The Positioning Template
Session two of my classes at ITM Executive MBA for Marketing Strategy. This covers Product & Branding Strategy including Theory & speaker notes provides some examples too.
This document provides a template for developing a marketing strategy for a small organization. It includes forms and questions to guide strategy execution in key areas such as market analysis, competitive analysis, organizational analysis, objectives, budget, and tactics. Completing the template requires understanding marketing concepts and consensus among the organization. The goal is to create a comprehensive marketing strategy document and supportive culture.
This document provides an overview of the Edexcel BTEC Level 3 Nationals specification for the "Introduction to Marketing" unit. It includes:
1. The aims and purpose of the unit which is to give learners an understanding of how organizations use marketing, research, planning, and the marketing mix.
2. An introduction to key marketing concepts like the importance of customers and how organizations use tools to meet customer needs and objectives.
3. An outline of the unit content covering the role of marketing, research and planning, customer segmentation, and developing a marketing mix.
4. The learning outcomes which are to understand marketing roles, research and planning, customer targeting, and developing a marketing mix.
This document provides an overview of the dynamic marketing environment and key concepts in strategic marketing planning. It discusses the external macroenvironment including factors like demography, economic conditions, competition, and technology. It also covers the external microenvironment including markets, suppliers, and intermediaries. The document then explains the importance of strategic planning, objectives, strategies, and tactics. It outlines the steps in strategic marketing planning including situation analysis, objective setting, targeting, positioning, and designing the marketing mix. Finally, it discusses the annual marketing plan and strategic planning models.
Marketing management involves developing strategies to influence customer demand and maximize profits. This includes analyzing customers, competitors, and the business itself to understand the market. A marketing strategy is then developed targeting specific customer segments and positioning products. The marketing mix of product, price, place, promotion, and politics is used to implement the strategy and achieve objectives outlined in a marketing plan. Marketing managers oversee executing the plan and managing projects.
- The document discusses strategies at three levels: corporate, business, and functional. At the corporate level, marketing assesses market attractiveness and promotes customer orientation. At the business level, firms compete through differentiation and positioning. At the functional level, resources are allocated to support business strategies.
- Developing strategies requires negotiation between different functional areas that may have competing interests. Successful marketing managers understand capabilities across functions and facilitate strategies responsive to customer needs.
- Four components contribute to strategy success: the customer interface, core strategy, strategic resources, and value network. These must be tied together through customer benefits, configuration, and boundaries.
Positioning Services in Competitive MarketsSurya Reddy
This document discusses positioning services in competitive markets. It emphasizes that effective positioning requires differentiating products, understanding customer preferences, and having a clear positioning strategy. Firms can focus their positioning strategy by targeting specific market segments, services, or both. Developing the right positioning strategy involves analyzing markets, competitors, and a firm's own resources to identify how to uniquely meet customer needs. Positioning maps are useful tools to visualize competitive positions and help firms evaluate strategic options.
Introduction to Marketing - Session 2 at ITM, Mumbai. Includes:
Targeting
What is good marketing research?
Marketing research Questions
Types of information
Types of market research
Market research summary
Test Market
Define Target Audience
Estimate market potential
Analyze market share/share of customer
Track competitors
Identify market characteristics & trends
Analyze sales data
Sales forecasting: Existing / new products
Product
• Product Strategy
• Product Essentials
• Features and Benefits
• Classifying products
• Product line and mix
• Branding
• Packaging and LabellingTrademarks
Positioning and Brand Building
• The Art of Positioning is Marketing
• Positioning the game of Mind and Heart
• Brand is a Promise
• Brand is owned by Customers
• Understanding Brand Drivers
• Brand Attributes
• Brand Architecture
• The Positioning Template
Session two of my classes at ITM Executive MBA for Marketing Strategy. This covers Product & Branding Strategy including Theory & speaker notes provides some examples too.
This document provides a template for developing a marketing strategy for a small organization. It includes forms and questions to guide strategy execution in key areas such as market analysis, competitive analysis, organizational analysis, objectives, budget, and tactics. Completing the template requires understanding marketing concepts and consensus among the organization. The goal is to create a comprehensive marketing strategy document and supportive culture.
This document provides an overview of the Edexcel BTEC Level 3 Nationals specification for the "Introduction to Marketing" unit. It includes:
1. The aims and purpose of the unit which is to give learners an understanding of how organizations use marketing, research, planning, and the marketing mix.
2. An introduction to key marketing concepts like the importance of customers and how organizations use tools to meet customer needs and objectives.
3. An outline of the unit content covering the role of marketing, research and planning, customer segmentation, and developing a marketing mix.
4. The learning outcomes which are to understand marketing roles, research and planning, customer targeting, and developing a marketing mix.
This document provides an overview of the dynamic marketing environment and key concepts in strategic marketing planning. It discusses the external macroenvironment including factors like demography, economic conditions, competition, and technology. It also covers the external microenvironment including markets, suppliers, and intermediaries. The document then explains the importance of strategic planning, objectives, strategies, and tactics. It outlines the steps in strategic marketing planning including situation analysis, objective setting, targeting, positioning, and designing the marketing mix. Finally, it discusses the annual marketing plan and strategic planning models.
Marketing management involves developing strategies to influence customer demand and maximize profits. This includes analyzing customers, competitors, and the business itself to understand the market. A marketing strategy is then developed targeting specific customer segments and positioning products. The marketing mix of product, price, place, promotion, and politics is used to implement the strategy and achieve objectives outlined in a marketing plan. Marketing managers oversee executing the plan and managing projects.
- The document discusses strategies at three levels: corporate, business, and functional. At the corporate level, marketing assesses market attractiveness and promotes customer orientation. At the business level, firms compete through differentiation and positioning. At the functional level, resources are allocated to support business strategies.
- Developing strategies requires negotiation between different functional areas that may have competing interests. Successful marketing managers understand capabilities across functions and facilitate strategies responsive to customer needs.
- Four components contribute to strategy success: the customer interface, core strategy, strategic resources, and value network. These must be tied together through customer benefits, configuration, and boundaries.
Positioning Services in Competitive MarketsSurya Reddy
This document discusses positioning services in competitive markets. It emphasizes that effective positioning requires differentiating products, understanding customer preferences, and having a clear positioning strategy. Firms can focus their positioning strategy by targeting specific market segments, services, or both. Developing the right positioning strategy involves analyzing markets, competitors, and a firm's own resources to identify how to uniquely meet customer needs. Positioning maps are useful tools to visualize competitive positions and help firms evaluate strategic options.
This document discusses sourcing strategies and trends in sourcing key business functions. It introduces the concept of a sourcing strategy cube that evaluates sourcing options based on ownership, location, and management approach. The document then covers trends in sourcing human resources, procurement, finance & accounting, and IT. It emphasizes that the goal of a sourcing strategy is to define what processes and functions provide strategic advantage versus those that could be outsourced to optimize costs and focus internally on core competencies. Effective sourcing requires selecting the right option in the sourcing cube and carefully managing the implementation and ongoing relationship.
This document discusses the marketing implications of corporate and business strategies. It covers three key points:
1) Marketing managers play an important role in strategic planning at both the business and corporate levels. They are responsible for developing strategic plans for new product-market entries and contributing to planning at higher levels.
2) There are three levels of strategy - corporate, business, and functional. While the components are similar, the issues addressed differ for each level. Corporate strategy focuses on scope and resource allocation across businesses.
3) Corporate strategy decisions like mission, objectives, and growth strategies have important marketing implications. The mission should define strategic scope and focus on customer value. Objectives must be specific and measurable. Growth can
This document outlines the key components of corporate, business, and marketing strategy. It discusses corporate strategy including defining the scope and purpose of the business. It also discusses business and marketing strategy relationships. The marketing strategy process is outlined including situation analysis, market vision/structure analysis, segmenting markets, and continuous learning. The document provides an outline for a marketing plan including sections on strategic situation summary, market targets and objectives, positioning statements, market mix strategy, coordination with other business functions, sales forecasts and budgets, and contingency plans.
This document discusses positioning services in the marketplace. It begins by explaining four focus strategies - fully focused, market focused, service focused, and unfocused. It then discusses identifying and selecting target market segments and using research to develop service concepts for specific segments. Important factors for positioning include important versus determinant attributes and creating a competitive position. Positioning maps can be used to plot strategy by showing a service's position on attributes compared to competitors, as demonstrated through an example of hotels in a city. The goal of positioning is to establish a simple, consistent message that differentiates a service in the minds of customers.
Strategic planning is the process of creating and maintaining alignment between an organization's objectives and resources and market opportunities. A marketing plan should include defining the business mission, performing a situation analysis to identify strengths, weaknesses, opportunities, and threats, setting objectives, identifying the target market, and outlining the marketing mix. The plan provides a guide for marketing activities and a basis for evaluating performance.
Chapter 7 positioning a service in the marketplaceBendita Baylôn Ü
This document provides an overview of positioning services in the marketplace. It discusses four focus strategies including fully focused, market focused, service focused, and unfocused. It also covers identifying target segments, important versus determinant attributes, creating a competitive position, and developing a positioning strategy. Positioning plays a key role in linking market and competitive analysis to a company's internal analysis and overall marketing strategy. The goal is to establish a unique position for a service in the minds of customers.
FOR MORE CLASSES VISIT
www.mkt421guide.com
Purpose of Assignment A well planned distribution channel system is a key component of the marketing mix that helps meet customer demands and achieve company goals. This assignment will analyze the role channels of distribution have in meeting the needs of consumers in both a brick and mortar and online retail setting. Scenario: You work for a newly formed sports apparel co
FOR MORE CLASSES VISIT
www.mkt421guide.com
Purpose of Assignment A well planned distribution channel system is a key component of the marketing mix that helps meet customer demands and achieve company goals. This assignment will analyze the role channels
This document discusses barriers to effective information sharing between marketing researchers and managers. It identifies three types of barriers - behavioral, process, and organizational. Several specific barriers are explored in more depth, including confirmatory bias, difficulty balancing creativity and data, problem definition issues, research rigidity, information asymmetries, and ethical concerns in marketing research practices. Overall, the document analyzes challenges to ensuring marketing research intelligence appropriately informs managerial decision making.
The document discusses various topics related to business strategy formulation and implementation including:
1. Elements of a business plan such as the executive summary, market research, marketing plan, management team, and financial plan.
2. Types of strategies such as corporate, directional, growth, concentration, and stability strategies.
3. Implementation of strategies through programs, budgets, and procedures.
4. Evaluation and control of strategies by monitoring performance, comparing to standards, and taking corrective actions. Measures like ROI are discussed.
The document discusses the role of integrated marketing communications (IMC) in the marketing process. It covers topics like target marketing, segmentation, positioning, the 4 P's of marketing (product, price, place, promotion), and push vs. pull distribution strategies. The overall process involves analyzing markets, identifying customer segments, developing marketing strategies and programs for each segment, and promoting products to final buyers through various communication channels.
1. The chapter examines how firms understand other firms as customers by learning how they rely on supplier networks, integrate purchasing with other functions, and make purchase decisions.
2. There are three main purchasing orientations - buying, procurement, and supply chain management - that have different priorities like reducing costs, improving quality, and building long-term supplier relationships.
3. Understanding a customer's purchasing orientation helps suppliers provide value. Purchasing also works closely with other functions and firms through cross-functional teams and activities that develop supply resources, improve existing offerings, and contribute to new product development.
This document provides an overview of key concepts from the BUSM 3200 Strategic Management course including:
1) It discusses different ways of classifying business strategies such as generic strategies, strategic directions using the Ansoff matrix, and strategies based on the context and scale of the business.
2) It covers the three generic strategies of cost leadership, differentiation, and focus as well as how firms can achieve competitive advantage through these strategies.
3) Examples and diagrams are provided to illustrate concepts like economies of scale, the experience curve, and how differentiation can be achieved in industries like airlines.
The document introduces the Delta Model, a new strategy framework that places the customer at the center of management. It examines three primary options to establish customer bonding: Best Product, Total Customer Solutions, and System Lock-In. Best Product focuses on product economics through differentiation or low cost. Total Customer Solutions provides customized solutions and seeks cooperation. System Lock-In aims for market dominance through network effects. The Delta Model complements Porter's framework and the Resource-Based View by adding the missing customer perspective to strategic thinking.
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
This document discusses establishing objectives and budgeting for promotional programs. It covers setting specific and measurable communications objectives based on marketing goals. Objectives should consider sales versus communications goals and be benchmarked for evaluation. Budgeting approaches include top-down, bottom-up, percentage of sales, and return on investment. The budget is then allocated based on market factors and organizational characteristics.
The document discusses marketing management and the holistic marketing concept. It provides definitions of marketing and marketing management, and explains that holistic marketing recognizes the interdependencies between marketing programs, processes, and activities. There are four components of holistic marketing: relationship marketing, integrated marketing, internal marketing, and socially responsible marketing. The document also outlines some of the key dimensions and concepts of holistic marketing.
Market segmentation involves dividing a broad target market into subsets of consumers who have common needs, interests, and priorities. It allows companies to design strategies targeted to specific segments. There are several bases for segmentation, including demographic factors like age and income, geographic factors, psychographic factors like lifestyle and personality, and behavioral factors like benefits sought and brand loyalty. Segmentation allows companies to increase marketing effectiveness, design products that precisely match customer expectations, and overcome competition. Choosing the right target market involves evaluating segment attractiveness and a company's objectives/resources. Common targeting strategies include targeting the whole market, a single segment, or multiple segments. Proper product positioning is then needed to occupy a distinct place in customers' minds.
Marketers segment consumers into groups based on geographical, demographic, psychographic, and behavioral characteristics to better understand consumer needs. They then evaluate segment sizes, market attractiveness, and their own resources to select target markets. Positioning strategies involve identifying value differences, selecting a competitive advantage, choosing an overall strategy, and developing a positioning statement to communicate the brand's differentiated value proposition to consumers relative to competitors.
This document provides an introduction to strategic marketing. It discusses strategic marketing and market driven strategy. It also covers corporate, business, and marketing strategy. Finally, it addresses some of the challenges of the new era for strategic marketing, including escalating globalization, technology changes, and demands for social responsibility.
Module 3 - BackgroundPRINCIPLES OF MARKETINGAll readings are r.docxroushhsiu
Module 3 - Background
PRINCIPLES OF MARKETING
All readings are required unless noted as “Optional” or “Not Required.”
Introduction
In practice, Marketers use various models to describe the different marketing functions. Some of the more popular models are the 7 step model, STP (segmentation, targeting, positioning), or the 4 C's (Consumer Behavior, Company Analysis, Competitor Analysis, and Context). Each has advantages and drawbacks regarding comprehensiveness. Readings describing each of these models are provided in the Optional Reading list at the end of this section. For this module, however, we will use a model that integrates and abridges these other models.
Consumers, Markets, and Competition
Though many people think of marketing as consisting of sales and advertising, one of the most important marketing functions begins even before the final product or service has been developed. In this early stage, the organization conducts research to determine customer needs, how the market is structured, and the number and nature of competitors addressing that need. As you will see below, these three topics are intertwined.
Consumers
The purpose of marketing is to discover how to provide value to consumers while earning a profit. Marketers must understand the entire consumer base: the customer served by the organization, the customer currently served by competitors, and customers who may be served in the future. One way marketers do this is by analyzing buyer behavior (i.e., how consumers get information and how consumers make buying decisions). Consumer behaviors are influenced by a number of considerations such as psychological factors, convenience, competing choices, and cultural preferences. Read the following book chapter on consumer behavior.
Tanner, J., and Raymond, M. (2012). Marketing Principles (v. 2.0). Ch. 3: Consumer behavior: How people make buying decisions. Sections 3.1-3.6. Retrieved from https://2012books.lardbucket.org/pdfs/marketing-principles-v2.0.pdf
Markets
Any business needs to know the characteristics of the markets in which the firm operates. Understanding the customer and the market requires extensive and sophisticated research efforts to gather and analyze social and economic trends, human decision-making, and potential competitors. The goal of market research is to enable the firm to identify opportunities and threats in the business environment as well as the organization’s capacity to exploit its strengths and shore up its weaknesses.
Market research can be either primary (collected directly from the source), or secondary (collected/published by someone outside the organization). Some examples of secondary data include:
· US Census
· www.Data,gov
· Internal data (such as customer cards at grocery stores that collect data on buying patterns)
· Nielsen or Arbitron ratings
· Published articles and reports
· Blog posts
· Social media
The following chart illustrates the differences between primary and secondary market re ...
This document discusses the STP process of marketing management. It begins by defining segmentation, targeting, and positioning. Segmentation involves classifying customers into groups based on common characteristics. Targeting evaluates segment attractiveness and selects segments to enter. Positioning arranges a product to occupy a clear place in the consumer's mind relative to competitors.
The document then discusses target markets and the advantages of segmentation. It outlines requirements for effective segmentation such as segments being measurable, accessible, substantial, and differential. Steps in STP are identified including identifying segmentation bases, developing segment profiles, selection criteria, and selecting target segments. The document provides examples of segmentation bases and strategies for business markets.
This document discusses sourcing strategies and trends in sourcing key business functions. It introduces the concept of a sourcing strategy cube that evaluates sourcing options based on ownership, location, and management approach. The document then covers trends in sourcing human resources, procurement, finance & accounting, and IT. It emphasizes that the goal of a sourcing strategy is to define what processes and functions provide strategic advantage versus those that could be outsourced to optimize costs and focus internally on core competencies. Effective sourcing requires selecting the right option in the sourcing cube and carefully managing the implementation and ongoing relationship.
This document discusses the marketing implications of corporate and business strategies. It covers three key points:
1) Marketing managers play an important role in strategic planning at both the business and corporate levels. They are responsible for developing strategic plans for new product-market entries and contributing to planning at higher levels.
2) There are three levels of strategy - corporate, business, and functional. While the components are similar, the issues addressed differ for each level. Corporate strategy focuses on scope and resource allocation across businesses.
3) Corporate strategy decisions like mission, objectives, and growth strategies have important marketing implications. The mission should define strategic scope and focus on customer value. Objectives must be specific and measurable. Growth can
This document outlines the key components of corporate, business, and marketing strategy. It discusses corporate strategy including defining the scope and purpose of the business. It also discusses business and marketing strategy relationships. The marketing strategy process is outlined including situation analysis, market vision/structure analysis, segmenting markets, and continuous learning. The document provides an outline for a marketing plan including sections on strategic situation summary, market targets and objectives, positioning statements, market mix strategy, coordination with other business functions, sales forecasts and budgets, and contingency plans.
This document discusses positioning services in the marketplace. It begins by explaining four focus strategies - fully focused, market focused, service focused, and unfocused. It then discusses identifying and selecting target market segments and using research to develop service concepts for specific segments. Important factors for positioning include important versus determinant attributes and creating a competitive position. Positioning maps can be used to plot strategy by showing a service's position on attributes compared to competitors, as demonstrated through an example of hotels in a city. The goal of positioning is to establish a simple, consistent message that differentiates a service in the minds of customers.
Strategic planning is the process of creating and maintaining alignment between an organization's objectives and resources and market opportunities. A marketing plan should include defining the business mission, performing a situation analysis to identify strengths, weaknesses, opportunities, and threats, setting objectives, identifying the target market, and outlining the marketing mix. The plan provides a guide for marketing activities and a basis for evaluating performance.
Chapter 7 positioning a service in the marketplaceBendita Baylôn Ü
This document provides an overview of positioning services in the marketplace. It discusses four focus strategies including fully focused, market focused, service focused, and unfocused. It also covers identifying target segments, important versus determinant attributes, creating a competitive position, and developing a positioning strategy. Positioning plays a key role in linking market and competitive analysis to a company's internal analysis and overall marketing strategy. The goal is to establish a unique position for a service in the minds of customers.
FOR MORE CLASSES VISIT
www.mkt421guide.com
Purpose of Assignment A well planned distribution channel system is a key component of the marketing mix that helps meet customer demands and achieve company goals. This assignment will analyze the role channels of distribution have in meeting the needs of consumers in both a brick and mortar and online retail setting. Scenario: You work for a newly formed sports apparel co
FOR MORE CLASSES VISIT
www.mkt421guide.com
Purpose of Assignment A well planned distribution channel system is a key component of the marketing mix that helps meet customer demands and achieve company goals. This assignment will analyze the role channels
This document discusses barriers to effective information sharing between marketing researchers and managers. It identifies three types of barriers - behavioral, process, and organizational. Several specific barriers are explored in more depth, including confirmatory bias, difficulty balancing creativity and data, problem definition issues, research rigidity, information asymmetries, and ethical concerns in marketing research practices. Overall, the document analyzes challenges to ensuring marketing research intelligence appropriately informs managerial decision making.
The document discusses various topics related to business strategy formulation and implementation including:
1. Elements of a business plan such as the executive summary, market research, marketing plan, management team, and financial plan.
2. Types of strategies such as corporate, directional, growth, concentration, and stability strategies.
3. Implementation of strategies through programs, budgets, and procedures.
4. Evaluation and control of strategies by monitoring performance, comparing to standards, and taking corrective actions. Measures like ROI are discussed.
The document discusses the role of integrated marketing communications (IMC) in the marketing process. It covers topics like target marketing, segmentation, positioning, the 4 P's of marketing (product, price, place, promotion), and push vs. pull distribution strategies. The overall process involves analyzing markets, identifying customer segments, developing marketing strategies and programs for each segment, and promoting products to final buyers through various communication channels.
1. The chapter examines how firms understand other firms as customers by learning how they rely on supplier networks, integrate purchasing with other functions, and make purchase decisions.
2. There are three main purchasing orientations - buying, procurement, and supply chain management - that have different priorities like reducing costs, improving quality, and building long-term supplier relationships.
3. Understanding a customer's purchasing orientation helps suppliers provide value. Purchasing also works closely with other functions and firms through cross-functional teams and activities that develop supply resources, improve existing offerings, and contribute to new product development.
This document provides an overview of key concepts from the BUSM 3200 Strategic Management course including:
1) It discusses different ways of classifying business strategies such as generic strategies, strategic directions using the Ansoff matrix, and strategies based on the context and scale of the business.
2) It covers the three generic strategies of cost leadership, differentiation, and focus as well as how firms can achieve competitive advantage through these strategies.
3) Examples and diagrams are provided to illustrate concepts like economies of scale, the experience curve, and how differentiation can be achieved in industries like airlines.
The document introduces the Delta Model, a new strategy framework that places the customer at the center of management. It examines three primary options to establish customer bonding: Best Product, Total Customer Solutions, and System Lock-In. Best Product focuses on product economics through differentiation or low cost. Total Customer Solutions provides customized solutions and seeks cooperation. System Lock-In aims for market dominance through network effects. The Delta Model complements Porter's framework and the Resource-Based View by adding the missing customer perspective to strategic thinking.
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
This document discusses establishing objectives and budgeting for promotional programs. It covers setting specific and measurable communications objectives based on marketing goals. Objectives should consider sales versus communications goals and be benchmarked for evaluation. Budgeting approaches include top-down, bottom-up, percentage of sales, and return on investment. The budget is then allocated based on market factors and organizational characteristics.
The document discusses marketing management and the holistic marketing concept. It provides definitions of marketing and marketing management, and explains that holistic marketing recognizes the interdependencies between marketing programs, processes, and activities. There are four components of holistic marketing: relationship marketing, integrated marketing, internal marketing, and socially responsible marketing. The document also outlines some of the key dimensions and concepts of holistic marketing.
Market segmentation involves dividing a broad target market into subsets of consumers who have common needs, interests, and priorities. It allows companies to design strategies targeted to specific segments. There are several bases for segmentation, including demographic factors like age and income, geographic factors, psychographic factors like lifestyle and personality, and behavioral factors like benefits sought and brand loyalty. Segmentation allows companies to increase marketing effectiveness, design products that precisely match customer expectations, and overcome competition. Choosing the right target market involves evaluating segment attractiveness and a company's objectives/resources. Common targeting strategies include targeting the whole market, a single segment, or multiple segments. Proper product positioning is then needed to occupy a distinct place in customers' minds.
Marketers segment consumers into groups based on geographical, demographic, psychographic, and behavioral characteristics to better understand consumer needs. They then evaluate segment sizes, market attractiveness, and their own resources to select target markets. Positioning strategies involve identifying value differences, selecting a competitive advantage, choosing an overall strategy, and developing a positioning statement to communicate the brand's differentiated value proposition to consumers relative to competitors.
This document provides an introduction to strategic marketing. It discusses strategic marketing and market driven strategy. It also covers corporate, business, and marketing strategy. Finally, it addresses some of the challenges of the new era for strategic marketing, including escalating globalization, technology changes, and demands for social responsibility.
Module 3 - BackgroundPRINCIPLES OF MARKETINGAll readings are r.docxroushhsiu
Module 3 - Background
PRINCIPLES OF MARKETING
All readings are required unless noted as “Optional” or “Not Required.”
Introduction
In practice, Marketers use various models to describe the different marketing functions. Some of the more popular models are the 7 step model, STP (segmentation, targeting, positioning), or the 4 C's (Consumer Behavior, Company Analysis, Competitor Analysis, and Context). Each has advantages and drawbacks regarding comprehensiveness. Readings describing each of these models are provided in the Optional Reading list at the end of this section. For this module, however, we will use a model that integrates and abridges these other models.
Consumers, Markets, and Competition
Though many people think of marketing as consisting of sales and advertising, one of the most important marketing functions begins even before the final product or service has been developed. In this early stage, the organization conducts research to determine customer needs, how the market is structured, and the number and nature of competitors addressing that need. As you will see below, these three topics are intertwined.
Consumers
The purpose of marketing is to discover how to provide value to consumers while earning a profit. Marketers must understand the entire consumer base: the customer served by the organization, the customer currently served by competitors, and customers who may be served in the future. One way marketers do this is by analyzing buyer behavior (i.e., how consumers get information and how consumers make buying decisions). Consumer behaviors are influenced by a number of considerations such as psychological factors, convenience, competing choices, and cultural preferences. Read the following book chapter on consumer behavior.
Tanner, J., and Raymond, M. (2012). Marketing Principles (v. 2.0). Ch. 3: Consumer behavior: How people make buying decisions. Sections 3.1-3.6. Retrieved from https://2012books.lardbucket.org/pdfs/marketing-principles-v2.0.pdf
Markets
Any business needs to know the characteristics of the markets in which the firm operates. Understanding the customer and the market requires extensive and sophisticated research efforts to gather and analyze social and economic trends, human decision-making, and potential competitors. The goal of market research is to enable the firm to identify opportunities and threats in the business environment as well as the organization’s capacity to exploit its strengths and shore up its weaknesses.
Market research can be either primary (collected directly from the source), or secondary (collected/published by someone outside the organization). Some examples of secondary data include:
· US Census
· www.Data,gov
· Internal data (such as customer cards at grocery stores that collect data on buying patterns)
· Nielsen or Arbitron ratings
· Published articles and reports
· Blog posts
· Social media
The following chart illustrates the differences between primary and secondary market re ...
This document discusses the STP process of marketing management. It begins by defining segmentation, targeting, and positioning. Segmentation involves classifying customers into groups based on common characteristics. Targeting evaluates segment attractiveness and selects segments to enter. Positioning arranges a product to occupy a clear place in the consumer's mind relative to competitors.
The document then discusses target markets and the advantages of segmentation. It outlines requirements for effective segmentation such as segments being measurable, accessible, substantial, and differential. Steps in STP are identified including identifying segmentation bases, developing segment profiles, selection criteria, and selecting target segments. The document provides examples of segmentation bases and strategies for business markets.
04 marketing segmentation,targeting and positioningThejus Jayadev
The document discusses market segmentation, targeting, and positioning (STP). It defines segmentation as classifying customers into groups, targeting as selecting segments to enter, and positioning as arranging a product to occupy a clear place in customers' minds relative to competitors. The key steps are: 1) identifying segmentation bases; 2) developing segment profiles and selection criteria; 3) choosing target segments; 4) developing a position for each; and 5) creating a marketing mix for each. Effective segmentation requires segments be measurable, accessible, substantial, and differentially responsive to marketing activities. The document also discusses evaluating and choosing target segments and strategies for coverage, as well as developing competitive advantages and supporting a positioning strategy with a unique marketing mix.
1. The STP process involves segmenting customers into groups, targeting specific segments to enter, and positioning products in the consumer's mind relative to competitors.
2. Segmentation breaks up a market into subgroups with common needs. Targeting evaluates segment attractiveness and selects segments to target. Positioning arranges the product to occupy a clear place in the consumer's mind.
3. Effective segmentation bases groups on measurable, accessible, and substantial differences that allow for differential marketing strategies. The steps are to identify segmentation bases, profile segments, select targets, and develop positioning and marketing mixes for each target.
Strategic profile and strategic thinking overviewNishant Pahad
This document provides an overview of strategic thinking and the strategic profile framework. It outlines a process for developing a future strategic profile that includes clarifying the current situation, analyzing strategic variables, exploring potential driving forces, developing a tentative strategic profile, testing the profile against competitors and inputs, and finalizing the strategic profile and identifying critical issues. The strategic profile encompasses elements like the business concept, driving force, required areas of excellence, product/market scope, size/growth guidelines, and corporate beliefs. It is a framework to help organizations determine their future strategic direction and make choices around products, customers and markets.
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
This document discusses key concepts in developing marketing strategies and plans. It covers value delivery processes, the value chain, core business processes, core competencies, holistic marketing, marketing plans, levels of marketing plans, corporate headquarters planning activities including defining mission and assessing growth opportunities, strategic business units, Porter's generic strategies, and categories of marketing alliances. The document provides definitions and explanations of these marketing concepts.
14 Marketing Concept to Consider to Incorporate MarketingRubayet Hassan
1. The document outlines 14 marketing concepts for participants to consider incorporating into their marketing strategies, including setting SMART objectives, conducting PEST, competitor, and SWOT analyses, understanding the marketing mix (4Ps), product life cycles, and Ansoff's Matrix.
2. Key concepts discussed are analyzing political, economic, social, and technological factors with PEST, regularly evaluating competitors, researching customers and other micro-environmental factors, and coordinating objectives, strategies, and planning.
3. The marketing mix, product development process, and consumer buying process are also summarized as important frameworks for segmentation, positioning, targeting, and influencing purchases.
This document discusses segmentation, targeting, and positioning in strategic marketing. Segmentation involves identifying customer groups based on relevant characteristics. Targeting involves selecting segments to target. Positioning refers to how a company communicates its value to customers in a target segment. The document provides details on different segmentation approaches, targeting strategies, and how to establish an effective positioning strategy.
The document provides guidance on developing a marketing plan for a new business venture. It discusses conducting an industry and competitor analysis, defining the target market through segmentation, establishing goals and objectives, and developing marketing strategies around product, price, placement, and promotion. The marketing plan should then be implemented, monitored, and adjusted as needed based on results.
Market segmentation refers to dividing a market into subgroups of customers with distinct needs and characteristics that lead to similar responses to marketing efforts. It allows companies to target specific segments effectively. There are three main criteria for segmentation: homogeneity within segments, distinction between segments, and similar response to the market. Effective segmentation creates identifiable, accessible, profitable, and durable segments that meet unique customer needs and can be measured. It facilitates choosing marketing targets and developing tailored and efficient marketing strategies for each segment.
Market Segmentation, Targeting, and Positioning - Leonard.pptxVisualSoft1
Segmentation is the process of classifying customers into groups which share some common characteristic
Targeting involves the process of evaluating each segments attractiveness and selecting one or more segments to enter
Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of the consumer
The STP process is an important marketing concept involving segmentation, targeting, and positioning. Segmentation involves dividing the overall market into groups with similar characteristics. Targeting involves selecting specific market segments to focus on. Positioning is how the product is designed to be perceived in the marketplace against competitors. The goal of STP is to guide development of an appropriate marketing mix.
Market segmentation involves dividing a market into subgroups with similar characteristics that influence demand. The objectives of market segmentation are to identify attractive marketing opportunities, select target markets, determine product mix, select channels, and develop effective marketing programs. The key steps in market segmentation are identifying segments, developing profiles, evaluating segments, selecting targets, and developing positioning and marketing plans. Target marketing focuses marketing efforts on specific segments likely to purchase products and services.
This document discusses the evolution and key concepts of marketing. It outlines 7 steps in the strategic planning process: 1) defining organizational mission, 2) establishing strategic business units, 3) setting marketing objectives, 4) performing situation analysis, 5) developing marketing strategy, 6) implementing tactical plans, and 7) monitoring results. Marketing strategy involves analyzing strengths, weaknesses, opportunities, and threats, and determining appropriate product, distribution, promotion, and price plans for each strategic business unit. The overall goal is to satisfy customers and achieve organizational objectives.
This part provides a template for developing a marketing strategy for the smaller organization. The format is a workbook style with many forms to help provide a solid guide for executing the strategy concepts discussed earlier. A complete marketing strategy document will be in much more detail than provided by the forms and questions. You will want to refer to the text for a detailed discussion of the concepts before filling in the forms.
Chapter 2 developing marketing strategies and plansAamir Khan
The document discusses key concepts in marketing strategy and planning. It covers customer perceived value, the value delivery process in three stages, value chain analysis, core competencies, corporate and division strategic planning, and Ansoff's product/market matrix. The value delivery process focuses on choosing value for customers, providing that value through the marketing mix, and communicating the value. The document also discusses intensive and integrative growth strategies including market penetration, development, product development, and diversification.
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1. Product policy involves decisions about a company's product and service offerings and provides a framework for assessing global product opportunities. It helps satisfy customer needs and build competitive advantage through core competencies.
2. There are four main types of industrial product lines: proprietary/catalog products, custom-built products, custom-designed products, and industrial services.
3. Defining the relevant product market is important for sound product decisions. The product market establishes the arena in which a business competes and considers customer functions, technologies, customer segments, and value chains.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
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Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
2. Note on Targeting and Positioning 133-N98
Market Definition
1. Define market
Segmentation
1. Group customers into internally homogeneous clusters according
to the basis selected (e.g., attitudes, purchase propensities, usage,
media habits, etc.)
2. Describe or profile segment characteristics
Targeting
1. Evaluate segments according to normative criteria such as
organizational goals and resources, and the environmental and
competitive forces
2. Rank all segments according to the fit with these criteria
3. Select one or more segments to target
Positioning
1. Identify positioning alternatives for each segment, given customer
needs and competitive positions
2. Select desirable positioning in the context of overall corporate
goals
Design and Implement Marketing Program
1. Design all elements of the marketing program to be consistent with
the positioning strategy
2. Implement marketing program
Figure 1 The STP Process Framework
Source1: Adopted from Bagozzi, Rosa, Celly, and Coronel (1998)
Targeting: Segment Evaluation and Selection
Once a company has identified and described the market segments, it needs to evaluate
them in order to determine which one(s) offers the best market opportunity. When evaluating
market segments, managers need to appraise both overall attractiveness of each segment and the
fit between the segment and the company’s resources and objectives.
Overall Segment Attractiveness
The primary purpose of assessing the overall attractiveness is to gauge whether or not a
generic market potential exists for any prospective entrant to the market. The company first
needs to assess whether a segment has characteristics that makes it attractive. Managers
2
3. Note on Targeting and Positioning 133-N98
typically use a combination of the following criteria to evaluate overall attractiveness of a
segment. These criteria are:
1. Size/sales Potential: sales (unit and dollar)
2. Growth Potential: sales (unit and dollar), number of customers, potential of increasing
depth of relationships
3. Profitability: revenue and cost
4. Needs: primary demand, magnitude of unsatisfied needs
5. Competition: strengths and weaknesses of competitors in the segment
Data and information pertaining to these criteria are usually obtained by conducting
market research. Sources of information may be primary or secondary. Primary data (or
information) refers to those that are obtained in a study designed and conducted by the
researching party for its specific needs. A questionnaire survey is an example of primary data
collection which is conducted by many companies to answer specific questions. Data mining of
the in-house information, such as account sales reports, is also an example of primary data
collection. On the other hand, secondary data refers to information that is obtained by an outside
party in the past for some other purpose. For example, government statistics, such as census
data, is a type of secondary data. Impressive amounts of secondary data and information are
published by many other organizations (e.g., consulting firms, non-profit organizations, industry
associations) and available at libraries, or, in some cases, over the Internet.
Generally speaking, primary data has advantages over secondary data in terms of
specificity, relevance, and recency of the information obtained. However, obtaining primary
data is generally more expensive and time consuming. Meanwhile, secondary data has major
advantages over primary data, such as low cost and a short lead-time in obtaining information
because the data is already collected and published by somebody else. However, there are
several major limitations in secondary data. First on is that the secondary data may not exactly
correspond to the research questions on hand. For example, one may want to know children’s
preference of outdoor activities, but available secondary data might only contain information on
team sports activities. Second, secondary data might be too dated to be useful for managers in
rapidly changing environments. Third, unit of analysis in secondary data might not suit to a
manager’s particular need. For example, a brand manager might want to know the mean
household income of a particular geographic area, but the only available secondary data might
be about mean individual income, or per capita income.
Although each type of data has its own strengths and weaknesses, it is generally a good
idea first to examine whether or not the information one needs already exists in-house, followed
by secondary data exploration and primary data collection. For more detailed discussion of the
research process and methodology, one should investigate more advanced courses, such as
marketing research.
Segment/Company Fit
Once a generic market potential is assessed, an organization needs to evaluate the fit with
the segment given its goals, objectives, and resources. Sometimes attractive segments have to be
dismissed because the company’s long-term goals and objectives are at odds with the
opportunities in those segments. For example, a research-oriented pharmaceutical company may
not choose to be in a generic pharmaceutical segment because of its long-term aspiration and
3
4. Note on Targeting and Positioning 133-N98
commitment to provide cutting-edge medical solutions for “hard-to-cure diseases.” Even if the
segment is compatible with the long-term objectives, the organization needs to consider whether
it has the competencies and resource to succeed in that particular segment. On the other hand, a
company might find a segment attractive because it is compatible and synergistic with other
segments currently served. For instance, Tyson Foods, the largest poultry meat producer in the
U.S., found the prepared meal market attractive when they introduced an oven-ready stuffed
chicken along with their fresh chicken. The expected synergy encompasses several areas:
production, distribution, and marketing.
In sum, an organization should enter a market segment when it can develop superior
advantages over the competition and offer superior value to the customers. Therefore, key
factors for consideration are:
1. Goals and Objectives
2. Resources: in possession, required level, availability of the required level of resource
3. Competency: organization’s strengths and weaknesses (market, technological,
operational)
4. Synergy: compatibility with the current market segments
Portfolio Matrix Approach
A number of portfolio matrix approaches were developed in late 1970s and early 1980s
to evaluate attractiveness of markets. Fundamentally, the portfolio matrix approach attempts to
evaluate the strategic desirability of business lines collectively (or a portfolio of business lines)
within a company. Many companies have multiple business lines that are managed by strategic
business units (SBU’s)∗. For example, General Motors has numerous SBU’s including
Chevrolet, Pontiac, GMC Truck, Oldsmobile, and Cadillac. Although the portfolio approach is
primarily designed to answer market attractiveness at business unit level, the logic is applicable
to evaluate product and brand-level market opportunity in many cases. Two of the most used
ones are introduced here.
1. The Boston Consulting Group (BCG) Matrix
The BCG matrix argues that the fundamental business attractiveness is a function of
market growth rate and relative market share. In Figure 2, the vertical axis represents market
growth rate and the horizontal axis represents relative market share. Often in practice, the
market growth rate is considered low when it is below 10% per year. Relative market share
refers to the ratio of the company’s market share to its largest competitor. For example, if a
company has 10% market share, but its largest competitor commands 40%, the company’s
relative market share is .1/.4, or .25. If the company’s share is 50% and the largest competitor
has only 5% of the market, then the relative market share is .5/.05, or 10.
4
5. Note on Targeting and Positioning 133-N98
20%
Stars Question Marks
15%
Market Growth Rate 10%
Cash Cows Dogs
5%
0%
10.0 5.0 1.0 0.5 0.0
Relative Market Share
Figure 2 The Boston Consulting Group (BCG) Matrix
In Figure 2, five business units of a hypothetical company were shown in the matrix.
The five circles represent the five business units, and the size of the circles corresponds to the
relative sales volume of each business. Each quadrant bears its own label: Question Marks,
Stars, Cash Cows, and Dogs.
• Question Marks
Question marks refer to those businesses that are operated in high market growth rates
but have low relative market shares. Many businesses begin as question marks as they
try to capitalize upon high growth markets. Because of its high market growth rate, the
markets require a substantial amount of capital not only to keep up with the speed and
pace but also to become a dominant player as many more companies are trying to enter
the market. It is labeled as “question marks” because the managers need to think very
hard about whether continuing investments will eventually pay off. Because the question
mark market is often at an early stage of market/industry development, managers need to
evaluate whether and how long the high market growth rate would continue and what
level of relative market share they can achieve. The greatest challenge is that it is very
difficult to evaluate these questions simply because there aren’t many data points in the
early market development stage for managers to base their judgement. Thus, they are
“question marks.”
The hypothetical company has two question mark businesses, and should be hard pressed
to consider whether it can afford to spread its resources to two uncertain markets. The
typical strategy taken for this type of business is to “build,” that is to increase market
share, even if it means sacrificing short-term profitability. This strategy may be
appropriate for the company to grow the question mark business into a star business of
the future.
5
6. Note on Targeting and Positioning 133-N98
• Stars
A star refers to a market leader in a high growth market. When the question mark
business becomes successful and outgrows the competition, it will become a star.
However, a star status does not necessarily mean the business is generating a positive
cash flow. Because of the market’s high growth, the company may have to continue
spending a substantial amount of money to keep up with the growth rate and fend off its
competition. The hypothetical company has one star in its portfolio and needs to solidify
its market leader status to turn the cash flow into a positive one.
• Cash Cows
In general, if a business is in a market with lower than 10% annual growth rate with a
relatively high market share, it is called a cash cow business.∗ The company does not
have to finance a large expansion because the market growth is low. Furthermore,
because the company is a market share leader with probably fewer competitors, it enjoys
economies of scale and higher profit margins. Therefore, a cash cow business produces
a large positive cash flow for the company. The benefit of having a cash cow business is
not only to be able to pay off and recapture past investment, but also to use the cash to
support other non-cash cow businesses.
The hypothetical company has one cash cow with a modest size. It can be said that the
company is in a vulnerable position because this is the only one to support other
businesses. When other non-cash cow businesses start to drain the cash, the cash cow
business will become unable to support its market leader position and slide to become a
dog business (i.e., a low relative share in a low growth market). Ideally, the hypothetical
company needs more and/or larger cash cow businesses. The strategy usually chosen for
this type of businesses is to “hold,” that is to maintain the market share. The companies
with cash cow businesses also choose a “harvesting” or “milking” strategy often, by
which they concentrate on increasing the business’s short-term cash flow regardless of
long-term effect. Harvesting often involves cutting operating expenses, reducing R&D
and marketing expenditures, or stopping upgrading production facilities. The purpose is
to reduce the cost faster than the sales decline, thus increasing a cash flow in the short
term. This is appropriate when the prognosis of the business is dismal or when the
business needs more cash flow to support more promising initiatives.
• Dogs
The least desirable quadrant is labeled as “dogs” for its low relative market share and low
market growth rate. The businesses that belong to this category usually generate low
profits or losses. The hypothetical company has one dog business with a relatively large
amount of sales to other businesses. Because typical dog businesses require more
management attention for lower return, the company might want to seriously consider
either divesting or phasing out (i.e., harvesting) these businesses, unless there is a good
reason to hold onto it such as expected reversal of market growth or competitor’s exit.
Although the BCG model is originally developed to evaluate the desirability of a
company’s business lines, the central logic is quite applicable to evaluate the desirability
of a company’s brands. Some brands can be described as “dogs,” and others can be
6
7. Note on Targeting and Positioning 133-N98
described as “cash cows” and so on. If each brand caters one market segment2, then a
portfolio matrix approach can be used to elucidate which market segment is more (or
less) desirable over the others. Certainly this is an applied technique beyond its original
conception (i.e., evaluating business lines) that helps select the most desirable segment.
2. The General Electric (GE) Model
The GE model takes two different dimensions: market attractiveness and business
strength. The logic is similar to the preceding discussion of Segment/Company Fit (p.4), and the
GE model is one standardized approach to assess this fit. The GE model is depicted in Figure 3.
Business Strength
Strong Medium Weak
5.00
Attractive
Market Attractiveness
3.67
Moderate
2.33
Unattractive
1.00
5.00 3.67 2.33 1.00
Figure 3 The GE Model
Source : adapted from Kotler (1997) and Best (1997)
3
The market attractiveness is derived by evaluating the market based on the following
factors: overall market size, annual market growth rate, historical profit margin, competitive
intensity, technological requirements, inflationary vulnerability, energy requirements,
environmental impact, social/political and legal. For each of these factors, a weight that reflects
the importance of the factor to determine the overall attractiveness is assigned. Note that the
total of weights equals 1.00. Then, for each factor, the market is rated on the scale of 1-5 (i.e., 1
= very unattractive, 5 = very attractive). Finally, the overall attractiveness is derived by
multiplying the weight and rating score for each factor, and then summing all the component
weighted scores (Table 1).
Weight Rating (1-5) Weighted
Score
Overall market size 0.15 5 0.75
Annual market growth rate 0.20 4 0.80
7
8. Note on Targeting and Positioning 133-N98
Historical profit margin 0.10 5 0.50
Competitive intensity 0.15 2 0.30
Technological requirements 0.15 5 0.75
Inflationary vulnerability 0.05 3 0.15
Energy requirements 0.05 3 0.15
Environmental impact 0.05 3 0.15
Social/political legal 0.10 4 0.40
Total 1.00 - 3.95
Table 1 Market Attractiveness
On the other hand, business strength is derived by evaluating the company based on the
following factors: market share, share growth, product quality, brand reputation, distribution
network, promotional effectiveness, productive capacity, productive efficiency, unit costs,
material supplies, R&D performance, and managerial personnel. For each factor, a weight is
assigned based on the importance of the factor in winning in the market. The sum of the weights
is equal to 1.00. Then, the company is rated on each factor by using the 5-point scale (i.e., 1 =
very weak, 5 = very strong). Like in the case of market attractiveness quantification, the weight
and rating score for each factor are multiplied to obtain the weighted rating score. Finally, the
component weighted rating scores are summed to obtain the overall business strength (Table 2).
8
9. Note on Targeting and Positioning 133-N98
Weight Rating (1-5) Weighted
Score
Market share 0.10 4 0.40
Share growth 0.10 4 0.40
Product quality 0.10 3 0.30
Brand reputation 0.10 4 0.40
Distribution network 0.15 3 0.45
Promotional effectiveness 0.05 3 0.15
Productive capacity 0.05 3 0.15
Productive efficiency 0.05 4 0.20
Unit cost 0.10 4 0.40
Material supplies 0.05 4 0.20
R&D performance 0.05 5 0.25
Managerial personnel 0.10 4 0.40
Total 1.00 - 3.70
Table 2 Business Strength
After getting the weighted score for both dimensions, the fit between the market
attractiveness and business strength is evaluated (Figure 4). The example case is shown by a
star mark on the figure.
Business Strength
Strong Medium Weak
5.00
t
Fi
Attractive d
Goo
Market Attractiveness
3.67
e s
C as
Moderate
line
d er
2.33 B or
t
r Fi
o
Unattractive Po
1.00
5.00 3.67 2.33 1.00
Figure 4 Market-Business Fit
Then each of the existing businesses (or products) will be evaluated for three generic
kinds of strategic treatment. The three generic treatments are:
9
10. Note on Targeting and Positioning 133-N98
• Additional cash may be invested for sales growth and/or market share growth (the “good
fit” cases).
• The business (or product) may be funded selectively to maintain a consistent market
share and earnings flow (the diagonal “borderline” cases).
• The product may be denied additional funding. A dying but still profitable business may
be harvested (given only minimal support). Unprofitable business may be divested (the
“poor fit” cases).
Figure 4 can be used not only for existing product segments, but also for evaluating a
potential product segment where the company does not currently have a product. Suppose a
company is contemplating the appropriateness of introducing a new product. The company can
evaluate the market attractiveness of this new product’s potential target segment and the
company’s strength for this type of product market. Thus, the company will arrive at a
hypothetical scenario under which the management can further evaluate whether the fit would be
acceptable or not. The management can further extend this type of scenario analysis by
conducting a so-called sensitivity analysis, in which it evaluates how much change in the
objective function (i.e., market-business fit) would result from a change in one or more
assumptions (e.g., importance weights of market attractiveness, hypothetical component scores
of business strength).
In conclusion, evaluation and selection of target segment(s) is an elaborate process taking
many factors into consideration. Three types of analytical orientation are discussed in this
section: overall segment attractiveness, segment/company fit, and portfolio matrix. These three
approaches complement each other, thereby providing managers a much richer picture of
segment attractiveness and potential courses of actions. Evaluation and selection of the
segments requires data (primary and/or secondary), assessment, and insights not only from
marketing but also from other business functions such as corporate business planning, finance
and accounting, and sales. Because each functional division tends to focus on a particular type
of data and hold a different “worldview,” it is important to integrate a diverse set of
perspectives, knowledge, and wisdom to arrive at a more balanced, less biased assessment of the
segment opportunity. In the next section, positioning, which follows targeting (i.e., segment
evaluation and selection), is discussed.
Positioning
By definition, different characteristics manifest in different market segments. Quite
understandably, these differences result in different needs for product or service offerings.
Companies try to satisfy target market needs and therefore must position their offerings
according to the needs. More technically, positioning refers to “the company’s choice of
marketing mix – including its desired image, product attributes, communication message,
distribution, and pricing – to achieve its intended position in the target customers’ minds.” 4 It is
important to note that positioning is both an act (company’s intention) of the business and the
achieved position in the customers’ minds (customers’ perception). These two (intention and
perception) can turn out to be quite different if the company does not do the positioning right.
Furthermore, to do the positioning right, managers must understand the market well through
segmentation and targeting stages. Thus, effective positioning is dependent upon market
definition and segmentation, the first two stages of the STP process.
10
11. Note on Targeting and Positioning 133-N98
An organization’s positioning strategy is an important starting point toward the realized,
perceived position in customers’ minds. Every aspect of the product offering, as well as
competitors’ actions, influences customers’ perceptions. Therefore, the essence of positioning
strategy is to offer a product that is meaningful to target customers, but is differentiated enough
from those of its competitors, and to communicate and emphasize the advantages of the product.
Companies may select one or more in combination from the following positioning strategy
options depending on the customer and competitive characteristics of the target segment.5
• Product attributes and benefits
A company may emphasize one or more specific product attributes (i.e., objective features
and characteristics) and the related benefits the product provides for the target segment. To
be effective, the attributes and benefits of the product must be clear and relevant to the target
segment customers. For example, Johnson & Johnson’s positions its Tylenol for children
based on its product attributes and benefits. The company emphasizes its chewable form and
flavor (e.g., grape, cherry, bubble gum, watermelon), both of which are objective product
attributes. The resulting benefits are children’s willingness to take the medication and the
relief of symptoms (i.e., children like the pleasant flavor of the medication and find it easy to
swallow).
• Usage occasions or functions
A company may also position its product based on its particular usage occasions or
functions. For example, Excedrin is positioned as a “Tough headache medicine” in the
United States, while the same brand is positioned as a menstrual pain reliever in Japan.
These different usage occasion positionings in two different countries reflect the competitive
consideration in each country market, where Excedrin’s competitor brands are already
occupying other usage occasions. Another example of successful usage occasion positioning
is Johnson Wax’s Off brand aerial insect repellants (candles and mosquito coils), which are
specifically positioned to summer cook-outs with families and friends.
• Advantage relative to competition
Positioning can be done by using a competitor as a referent to the brand. The most famous
example is Avis’s “We try harder” campaign, in which the company positions itself as the
number two company after Hertz and pledges it tries harder to satisfy customers through price
and services. Also, in its Priority Mail campaign, the United States Postal Service compares the
2-3 days delivery service to FedEx 2Day and UPS 2nd Day Air based on the price with a tagline
“What’s Your Priority?” These are examples of positioning using competitor as a referent to the
focal brand.
The effectiveness of positioning hinges greatly on skillful differentiation of the product or
service to the competition. Good product differentiation is not a simple act of making the product
different from the competition or “differentiation for differentiation sake.” Then, what constitutes
good product differentiation? Kotler (1997) 6 provides the following normative criteria to evaluate
whether or not the differentiation is worth establishing and being used as positioning bases:
• Important: Does the difference deliver a highly valued benefit to a sufficient number of
buyers?
• Distinctive: Is the difference not offered by others or offered in a more distinctive way
by the company?
• Superior: Is the difference superior to other ways of obtaining the same benefit?
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12. Note on Targeting and Positioning 133-N98
• Communicable: Is the difference communicable and visible to buyers?
• Preemptive: Is the difference difficult to be copied by competitors?
• Affordable: Can the buyers afford to pay for the difference?
• Profitable: Will the company find it profitable to introduce the difference?
Nonetheless, quite a few brands fail in product differentiation and positioning by not
meeting one or more of the above criteria. One example is Crystal Pepsi. This soft drink is
clear in color, unlike other regular cola drinks. The product was obviously different, distinctive,
communicable, and affordable. But having “no color” was not relevant enough for consumers to
try and the benefit, if any, was hardly perceived by consumers. Another example is Hellmann’s
Dijonnaise, a combination of mayonnaise and Dijon mustard. The idea was intuitively attractive
– the convenience of mayonnaise and mustard in one. It was affordably priced, not offered by
the competition (thus distinctive), and the product concept is easy to communicate. However,
most consumers do adjust the amount of mayonnaise and mustard to their own tastes, and a
substantial number of people use either mayonnaise or mustard, but not both for their foods such
as sandwiches. Thus, the product attributes and benefits were not perceived as important or
superior as the company had originally thought, because consumers can easily get both
mayonnaise and mustard from the refrigerator and apply them in whatever proportions they
prefer.
The Perceptual Mapping Technique
Because it is customers’ perception that matters at the end of the day, many managers use
a technique that graphically describes the people’s perception about different objects. The
technique is called perceptual mapping. Perceptual maps are used at various levels, such as for
brands, product, and corporate positioning. Perceptual maps of brands may be used to evaluate
opportunities for new brands, as well as for repositioning existing brands. Figure 5-17 provides
one example of a perceptual map for the laundry detergent market. The vertical axis represents
the strength of the detergents in fighting the stain, and the horizontal axis denotes perceived
price of the detergents. It can be intuitively understood how the brands in the market are
perceived in terms of these two dimensions. Because the brands’ positions are graphically
expressed in this manner, it is also called a positioning map.
Basically, there are two ways to develop a perceptual map. One is to rely on managers’
and/or customers’ intuition about how the brands are perceived. It is dependent on informal,
qualitative observations people make about the brands. Another way is a more formal,
structured approach which involves data collection and advanced statistical techniques such as
multi-dimensional scaling, cluster analysis, factor analysis, and discriminant analysis. These
techniques are readily available in many advanced statistical software packages (e.g., SPSS,
SAS). Although explaining these techniques is generally reserved for advanced statistics or
marketing research courses and is beyond the scope of this note, in essence, these statistical
programs help managers to: 1) derive several important dimensions out of many possible ones,
and 2) place each brand (or company, product) on a given two dimensional space based on brand
similarity or rating scores of the brands on the dimensions.
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13. Note on Targeting and Positioning 133-N98
Tough on Stains
Tide
Ivory Wisk
Cheers
Arm & Hammer
Economy Premium
Fab
All
Weak on Stains
Figure 5-1 Perceptual Map of Laundry Detergents
The perceptual map can help managers not only to understand how each brand is
perceived, but also to: 1) identify open “space” that the existing brands do not occupy in
customers’ minds, and 2) identify the competitive sets that are the clusters of brands sharing the
similar space in customers’ minds. These are very useful pieces of information for a positioning
strategy. For example, if a brand manager is contemplating to launch a new product in the
detergent market, he or she needs to know what the competitive landscape looks like and where
the unfilled positions are. In Figure 5-1, it is obvious that there is a space for a tough-stain
fighter that is priced economically. Based on this, the brand manager might want to further
explore the feasibility of launching a new detergent that could be positioned as an economic
stain-fighter.
The map also suggests clusters of market segments as defined by the perceived
differences of brands. From Figure 5-1, it seems reasonable to suspect that Tide and Wisk form
a market segment that prefers a strong stain-fighter at a premium price, All seems to “own” its
segment, and Cheers and Arm & Hammer form another segment. Suppose that a brand manager
for Arm & Hammer realized that Cheers is taking its market share away probably because the
price of Cheers is perceived to be lower. The brand manager for Arm & Hammer might then
want to correct at least the price perception of his or her brand (by, for example, introducing an
economy pack or promoting the price per gallon) and attempt to prevent the share erosion due to
the perceived price difference.
Despite all its benefits, the perceptual map has several limitations. The first is the fact
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14. Note on Targeting and Positioning 133-N98
that only so much perceptual information can be presented in a two-dimensional space. The
brands’ positions are expressed only in terms of the defined dimensions that may not provide
enough insights to managers. Stain fighting capability and economy may be useful dimensions,
but they may not be the only dimensions on which managers need to analyze the brands. To
compensate this disadvantage, managers need to create additional perceptual maps incorporating
different dimensions, such as color protection, or soft/harshness to the fabric. Such an example
is given in Figure 5-2.
Strong Color Protection
Cheers
Tide
Wisk Fab
Ivory
Arm & Hammer
Harsh on Fabric Soft on Fabric
All
Weak Color Protection
Figure 5-2 Perceptual Map with Different Dimensions
By using different dimensions, the competitive landscape of the detergent market has
become more complete. Based on the two maps (Figures 5-1 and 5-2), it is observable that
Tide’s primary competition is Wisk, as they are perceived to be very similar on all the four
dimensions (i.e., stain fighting capability, economy, harsh/softness on fabric, and color
protection). But the brand manager for Tide, a Proctor & Gamble brand, may not want to move
up on color protection dimension in the hope of simply differentiating it from Wisk, because
Cheers (another P&G brand) has its own space of “superior color protection.” It can be also
observed that All seems to have a quite distinct perceptual space from the other brands.
Additionally, although Arm & Hammer is competing with Cheers for the space on stain-fighting
and economy (Figure 5-1), it is sufficiently differentiated on both color protection and
harsh/softness on fabric (Figure 5-2). Thus, it may not share exactly the same segment as
suspected by Figure 5-1 alone.
A second disadvantage of the perceptual mapping technique is that it is simply a snapshot
that illustrates the perceived position of the existing brands at one particular moment.
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15. Note on Targeting and Positioning 133-N98
Remember this map is based on people’s perception that could change for many reasons such as
new product introductions, changes in competitors positioning, new product information that
was not previously available, and so on. In other words, the market is dynamic, but the map is
not. Therefore, managers need to periodically update when important changes occur in the
market.
Finally, in spite of the usefulness of identifying an “open space,” the open space does not
necessarily mean a good opportunity. For example, there might be a good reason for the
existing brands not to be in that open space. Perhaps, it could be an infeasible combination of
attributes for profitable business, such as extremely expensive product characteristics (i.e., the
so-called “black hole” case). Thus, the value of the perceptual map is not that it provides an
answer (because it can’t), but that it provides a piece of information that can be used for further
analysis, and hopefully, for more informed decision-making.
Conclusions
This note reviewed the concepts of targeting and positioning in market opportunity
analysis. They are discussed as part of the STP process that starts with market definition and
market segmentation. All the steps in the STP process are interrelated.
A few points for executing the STP process need to be noted. First, the STP constitutes a
major part of market opportunity analysis that many marketing and business development
managers are required to prepare. Although the entire STP process appears to be lengthy at first,
it can be done quite efficiently on a routine basis once the logic is understood and each stage is
systematically executed. A permanent market intelligence mechanism, small or large, has to be
in place within the organization. Like many other analytical exercises, learning by doing is the
best way to master this important market opportunity assessment process. Second,
implementing the STP process within an organization requires a strong senior management
commitment. Because the middle level managers who are often responsible for the analysis are
very likely preoccupied by day-to-day tasks, they often feel forced to tradeoff the long-term
strategic benefits of the STP process and short-term tactical responses. This can be avoided only
if the senior management supports the process as a critical component of its strategic planning.
Although the primary focus of this note is to introduce the readers to technical aspects of
the STP process (targeting and positioning, in particular), these implementation issues are
equally important for successfully identifying and evaluating market opportunities.
15
17. 1
Bagozzi, Richard P., Jose Antonio Rosa, Kirti Sawhney Celly, and Francisco Coronel (1998), Marketing Management,
Upper Saddle River, New Jersey: Prentice Hall.
2
When a brand caters multiple segments, the brand needs to be split into several parts and be treated as if they were
separate brands for analytical purpose.
3
For more detailed discussion of the GE model, see Kotler, Philip (1997), Marketing Management, Upper Saddle River,
New Jersey: Prentice Hall and Best, Roger J. (1997), Market-Based Management, Upper Saddle River, New Jersey:
Prentice Hall.
4
Bagozzi, Richard P., Jose Antonio Rosa, Kirti Sawhney Celly, and Francisco Coronel (1998), Marketing Management,
Upper Saddle River, New Jersey: Prentice Hall. Page 191.
5
Ibid. Pages 192-193.
6
Kotler, Philip (1997), Marketing Management, Upper Saddle River, New Jersey: Prentice Hall. Pages 294-295.
7
Both Figures 5-1 and 5-2 are developed for illustration purposes only.