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