Chap006 - Market Targeting and Strategic Positioning

6-1
Chapter Six
Market Targeting and
Strategic Positioning
 Market Targeting Strategy

 Targeting in Different Market
Environments
 Positioning Strategy
 Developing the Positioning Strategy
 Determining Positioning Effectiveness
6-2
MARKET TARGETING STRATEGY
Identify segments
within the
product-market
TARGETING
AND
POSTIONING
Decide and
implement a Decide which
positioning segment(s) to
strategy for each target
targeted segment
6-3
Targeting Alternatives
Segments Clearly Defined
Target Target
Selected Multiple
Selective Niche(s) Segments Extensive
Targeting Product Product Targeting
Specialization Variety
Segments Not Clearly Defined
LEFTY'S: THE LEFT HAND STORE

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Targeting Alternatives 6-4
Target Selected Niche(s): Focuses on a unique target market instead of

marketing to everyone who could benefit from a product or service.
LEFTY'S, DIVVIES
Target Multiple Segments: Divides your target audience into multiple

groups and selecting several segments at a time to serve.
Product Specialization: Company specializes in a single product

category but serves a wide market. Toyota, Nokia, Bata
Product Variety: The number and range of BRANDS

or PRODUCTS offered by a supplier
6-5
Factors Influencing Targeting

Decisions
 Stage of product – market maturity
 Extent of diversity in buyer value requirements
 Industry structure
 The firm’s capabilities and resources
 Opportunities for gaining competitive advantage
Industry structure: the basic, underlying characteristics that shape the competitive

strategy for a group of firms producing products that are close substitutes for each
other (Porter, 1980)
6-6
TARGETING IN DIFFERENT MARKET

ENVIRONMENTS
 Emerging Markets
 Growth Markets
 Mature Markets
 Declining Markets
 Global Markets
6-7
Emerging Market
Buyer Diversity
– Segmentation limited due to similarity of buyers’
preferences
Product-market Structure
– Typically small new organizations
– Limited access to resources
Capabilities and Resources
– Unique benefit (differentiation) DC strategy rather than
low-cost
– First-mover advantage
Targeting Strategy
– Single target or a few broad segments
6-8
Growth Market
Buyer Diversity
– Segments should exist
– Numerous competitors
– Survival requires aggressive actions by firms that seek large market
positions
– Otherwise select one or a few market segments
Targeting Strategy
– Three possible strategies
1. Extensive market coverage by firms with established businesses
in related markets mgi F&B
2. Selective targeting by firms with diversified product portfolios
(TATA NANO)
3. Very focused targeting strategies by small organizations serving
one or a few market segments. Vegan, Lefty’s
6-9
Mature Markets
Buyer Diversity
– Segmentation essential for competitive advantage
– Intense competition for market share
– Emphasis on cost and service, and pressures on
profits
 Management’s objectives: cost reduction, selective
targeting, product differentiation
Targeting Strategy
 Firms pursuing extensive targeting strategies; may
decide to exit from certain segments
6-10
Global Markets
Global Integration
– Identify market segments that span global markets and
serve these needs with global positioning strategies
Local Responsiveness
– Consider requirements of domestic buyers
– Buyers’ needs and preferences affected by social,
political, cultural, economic, and language differences
Targeting Strategy
– Targeting a single country, regional (multinational)
targeting, or global targeting
6-11
POSITIONING STRATEGY
Deciding the desired perception/ association of

an organization/ brand by market target
buyers…and designing the marketing program
to meet (or exceed) buyers’ value requirements.
6-12
Strategic Positioning
Initiatives
1. POSITIONING
CONCEPT
The desired positioning of the
product (brand) by targeted buyers
MARKET
TARGET
3. POSITIONING 2. POSITIONING
EFFECTIVENESS STRATEGY
The extent to which The combination of
positioning objectives marketing actions
are achieved for the used to communicate
market target the positioning concept
to targeted buyers
6-13
Selecting the Positioning Concept
Group membership, or ego-

identification
Symbolic Functional
POSITIONING
CONCEPT
Experiential
Sensory pleasure
6-14
Positioning Strategies
web help
https://www.marketing91.com/positioning-
strategies/
6-15
Determining Positioning
Effectiveness
Offering is both distinctive and valuable
Customer and Competitor

Research
Methods for
Determining
Positioning
Effectiveness
Analytical Positioning Test

Techniques Marketing
6-16
Effectiveness
Customer and Competitor Research
– Research Studies
– Preference Maps
Test Marketing
– Generates information about commercial
feasibility and marketing program
– Provides market (sales forecasts) and
effectiveness measures
Analytical Positioning Techniques

– Incorporates research data into formal models of
decision analysis
6-17
Effectiveness
Customer and Competitor Research
– Research Studies
 Preference Maps
 Causal Factors
6-18
Effectiveness
Test Marketing
– Generates information about commercial feasibility and
marketing program
– Provides market (sales forecasts) and effectiveness measures
Analytical Positioning Techniques

– Obtaining information about customers and prospects,
analyzing it, and then developing strategies based on the
information coupled with management judgment is the crux of
positioning analysis
– Incorporates research data into formal models of decision
analysis
advertising media allocation
models
6-19
Positioning Errors
 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
(Mont Blanc pen)
6-20
Positioning Errors
 Confused positioning – Frequent changes and
contradictory messages confuse customers
 Doubtful positioning – claims made for the product

or brand are not regarded as credible

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6-1

 Market Targeting Strategy

MARKET TARGETING STRATEGY

Segments Clearly Defined

Segments Not Clearly Defined

LEFTY'S: THE LEFT HAND STORE

Target Selected Niche(s): Focuses on a unique target market instead of

Target Multiple Segments: Divides your target audience into multiple

Product Specialization: Company specializes in a single product

Product Variety: The number and range of BRANDS

Factors Influencing Targeting

 Stage of product – market maturity

 Extent of diversity in buyer value requirements

 The firm’s capabilities and resources

 Opportunities for gaining competitive advantage

Industry structure: the basic, underlying characteristics that shape the competitive

TARGETING IN DIFFERENT MARKET

Deciding the desired perception/ association of

Selecting the Positioning Concept

Group membership, or ego-

Customer and Competitor

Analytical Positioning Test

Analytical Positioning Techniques

Analytical Positioning Techniques

 Over-positioning – Customers have too narrow an

 Doubtful positioning – claims made for the product

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