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 productsCore 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 performanceEffective targeting and positioning strategies are essential in gaining and sustaining superior performance

Factors Influencing Targeting Decisions Stage of product – market maturityStage of product – market maturity Extent of diversity in preferencesExtent of diversity in preferences Industry structureIndustry structure Capabilities and resourcesCapabilities and resources Opportunities to gain competitive advantageOpportunities 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 itUnder-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 brandOver-positioning – Customers have too narrow an understanding of the company, product, or brand Confused positioning – Frequent changes and contradictory messages confuse customersConfused positioning – Frequent changes and contradictory messages confuse customers Doubtful positioning – claims made for the product or brand are not regarded as credibleDoubtful 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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