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?

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