Principles of Marketing Course Session 4 By Hesham Hassanin - Freelancer Marketing Trainer Mobile: 01061888823 - 01112590452 Email: hesham.hassanin.sayed@gmail.com

2. Quick Revision

3. Targeting

4. Targeting
• Definition:
The process of evaluating each market segment’s attractiveness and selecting one or more
segments to enter.
Target Market
• Target market:
A set of buyers sharing common needs or characteristics that the company decides to serve
• Purpose:
Allocation of values to each market segment according to agreed criteria, and determination of
priorities
• Outcome:
An understanding of which market segments are more attractive to the organisation than
others, and why, and decision on which ones to actively pursue

5. Selecting Target Market Segments
Undifferentiated
(mass) marketing
Differentiated
(segmented)
marketing
Concentrated
(niche) marketing
Micromarketing
(local or
individual
marketing)

6. Undifferentiated Marketing
(Mass Marketing)
A market-coverage strategy in which a firm
decides to ignore market segment differences
and go after the whole market with one offer.

7. Differentiated Marketing
(Segmented Marketing)
A market-coverage strategy in which a fir
decides to target several market segments and
designs separate offers for each
This is most appropriate when clear market
segments can be identified the product or service
can be differentiated in style, function, price, etc.

8. Concentrated Marketing
(Niche Marketing)
Here an organisation decides to focus its efforts
on one segment

9. Micromarketing
Tailoring products and marketing programs to
the needs and wants of specific individuals
and local customer segments
Local marketing
Tailoring brands and promotions to the needs and wants of local
customer segments—cities, neighbourhoods, and even specific
stores.
Individual marketing
Tailoring products and marketing programs to the needs and
preferences of individual customers—also called one-to-one
marketing, customized marketing, and markets-of-one marketing.

10. Exercise 3: Targeting

11. Differentiation and Positioning

12. Positioning
• Definition:
The way the product is defined by consumers on important
attributes—the place the product occupies in consumers’ minds
relative to competing products.
• Purpose:
Perceptual differentiation of market segments
• Outcome:
A shared customer belief that the organisation offers a superior
product/service

13. Competitive advantage
An advantage over competitors gained by offering greater
customer value, either by having lower prices or providing
more benefits that justify higher prices

14. Overall Positioning Strategy
(Value proposition)
The full positioning of a brand is called the
brand’s value proposition—the full mix of
benefits on which a brand is differentiated and
positioned.
It is the answer to the
customer’s question “Why
should I buy your brand?”

15. Possible Value Propositions
More
For
Less
More
For
The Same
More
For
More
The Same
For
Less
Less
For
Much Less
Benefits
Price
More The Same Less
MoreTheSameLess

16. Possible Value Propositions
The past figure shows possible value propositions on which a company might position its products. In the figure:
• More for More: “More-for-more” positioning involves providing the most upscale product or service and charging a higher
price to cover the higher costs. (Ex. Four Seasons hotels)
• More for the Same: Companies can attack a competitor’s more-for-more positioning by introducing a brand offering
comparable quality at a lower price. (Ex. Oppo Mobile Vs Samsung)
• The Same for Less: Offering “the same for less” can be a powerful value proposition everyone likes a good deal. (Ex. Discount
stores such as Carrefour)
• Less for Much Less. A market almost always exists for products that offer less and therefore cost less. Few people need, want,
or can afford “the very best” in everything they buy. In many cases, consumers will gladly settle for less than optimal
performance or give up some of the bells and whistles in exchange for a lower price. (Ex. NOKIA old mobiles)
• More for Less: Of course, the winning value proposition would be to offer “more for less.” Many companies claim to do this.
And, in the short run, some companies can actually achieve it. Several mobile operators have build consumption segments
where the more minutes a user consume talking on the phone, the cheaper each minute becomes. (Ex. Vodafone)

17. Exercise 4: Competitive Advantages

18. Break

19. Marketing Tactics
How exactly do we get there?

20. Marketing Mix 4Ps
Marketing
Mix
Price
Place
Product
Promotion

21. Marketing Mix 7Ps
Marketing
Mix
Price
Place
Product
Promotio
n
Process
Physical
Evidence
People

22. Exercise: 7Ps
s

23. Product
Anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or
need.

24. Levels of Products
Augmented Product
Actual Product
Core Customer
Value
Delivery
Product
Support Warranty
After
Sales
ServicesBrand
Name
Quality
Packaging
Design
Features
Each level
adds more
customer
value

25. Exercise: Products

26. Hesham.hassanin.sayed@gmail.com
0111 259 0452 – 0106 188 8823