Once the firm has identified its market segment opportunity , it has to decide how many and which one to target. •“Market targeting is a process of evaluating the market segments and identify one or more market segments to serve”.

1. Market Targeting
Dr. Amitabh Mishra

2. • Once the firm has identified its market
segment opportunity , it has to decide how
many and which one to target.
• “Market targeting is a process of evaluating
the market segments and identify one or
more market segments to serve”.
Dr. Amitabh Mishra, giBS Rohini

3. Target Market
Strategies/Patterns
Dr. Amitabh Mishra, giBS Rohini

4.  After evaluating different Market Segments a company
can consider following five strategies/pattern of target
market selection-
1. Single-Segment Concentration
2. Selective Specialization
3. Product Specialization
4. Market Specialization
5. Full Market Coverage
Target Market Strategies/Patterns
Dr. Amitabh Mishra, giBS Rohini

5. • Various products /markets may be-
• Small cars
• Sedan
• SUV’S
• MUV’s
• Off Roaders
In automobile car sector
Dr. Amitabh Mishra, giBS Rohini

6. • The company may select to serve single
segment.
1. Single segment concentration
Dr. Amitabh Mishra, giBS Rohini

7. • Single segment concentration involves higher
than normal risks because
• A particular market segment can exhaust.
• A competitor may invade the segment
• That is why, companies prefer to operate in
more than one segments.
Dr. Amitabh Mishra, giBS Rohini

8. Earlier in car market, Mahendra & Mahindra
served SUV segment only
Dr. Amitabh Mishra, giBS Rohini

9. Royal enfield serves only power byke segment in
2 wheeler market
Dr. Amitabh Mishra, giBS Rohini

10. • The company may select to serve more than
one segments, each objectively appropriate
and attractive.
2. Selective specialisation
Dr. Amitabh Mishra, giBS Rohini

11. • An automobile car company may decide to serve only
SUV’S and sedan segment of car market.
Dr. Amitabh Mishra, giBS Rohini

12. • The company may become specialized in
making a particular product that it sells to
several segments.
3. Product specialisation
Dr. Amitabh Mishra, giBS Rohini

13. Dr. Amitabh Mishra, giBS Rohini

14. • Two wheeler bike company like Hero motor
corporation produce almost all types of bikes
in India
Example
Dr. Amitabh Mishra, giBS Rohini

15. • The company may select to serve many needs
of a particular customer needs.
4. Market specialisation
Dr. Amitabh Mishra, giBS Rohini

16. • The company attempts to serve all customer
groups with all the products they might need.
5. Full market coverage
Dr. Amitabh Mishra, giBS Rohini

17. • Only very large firms can under take a full
market coverage strategy.
• Examples-
• Computer market- IBM
• Vehicle market- General Motors
• Drink market- Coca Cola
Dr. Amitabh Mishra, giBS Rohini

18. • A full market coverage can be done in two ways-
i. Undifferentiated marketing
ii. Differentiated marketing
 Undifferentiated Marketing: In Undifferentiated
marketing, the firm ignores market segment differences
and goes after the whole market with one market offer.
 An Undifferentiated marketing is “ the marketing
counterpart to standardization and mass production in
manufacturing”
Dr. Amitabh Mishra, giBS Rohini

19. • It focus on basic buyer need rather than on differences
among buyers.
• Differentiated Marketing: In Differentiated
marketing, the firms operate in several market
segments and design different program for each
segment.
• Differentiated marketing typically create mare total
sales than undifferentiated marketing. It also
increases cost of doing business.
Dr. Amitabh Mishra, giBS Rohini

20. • Higher costs using differentiated marketing
include:
• Product modification cost
• Manufacturing cost
• Administrative cost
• Inventory cost
• Promotion cost
Dr. Amitabh Mishra, giBS Rohini

21. Differentiation
&
Positioning
21
Dr. Amitabh Mishra, giBS Rohini

22. Differentiation
22
Dr. Amitabh Mishra, giBS Rohini

23. Differentiation
“Differentiation is an act of designing a set of
meaningful differences to distinguish the
company’s offering from competitors offerings”.
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Dr. Amitabh Mishra, giBS Rohini

24. Dimensions of Differentiation
• The companies can differentiate its market
offerings along five dimensions-
1. Product differentiation
2. Customer service differentiation
3. Personal differentiation
4. Channel differentiation
5. Image differentiation
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Dr. Amitabh Mishra, giBS Rohini

25. Customer Services Differentiation
Ordering Ease
Delivery & Returns
Installation
Training
Maintenance & Repair
Customer
Consulting
25
Dr. Amitabh Mishra, giBS Rohini

26. Customer Services Differentiation:
(LIC vs. ICICI Prudential)

27. Positioning
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Dr. Amitabh Mishra, giBS Rohini

28. Positioning
“Positioning is the act of designing the company’s
offering and image to occupy a distinctive place in
target markets mind”.
• According to Al Ries and JackTrout-
“Positioning is what you do to the mind of the
prospect. That is, you position the product in the
mind of prospect”.
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Dr. Amitabh Mishra, giBS Rohini

29. • A well known product generally hold a distinctive
position in consumers mind
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Dr. Amitabh Mishra, giBS Rohini

30. Positioning Strategies
• Following Positioning strategies can be
identified-
1. Attribute positioning
2. Benefit positioning
3. Use or application positioning
4. User positioning
5. Competitor positioning
6. Product category positioning
7. Quality or price positioning
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Dr. Amitabh Mishra, giBS Rohini

31. 1. Attribute positioning: a company can position it
self on an attribute. Such as- size or number of
year of existence.
• Ex- Disney land can advertise it self as largest theme
park in the world.
2. Benefit positioning: the product can be positioned
as the leader in a certain benefit.
3. Use or application positioning: A company can
position itself as best for some use or application.
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Dr. Amitabh Mishra, giBS Rohini

32. 4. User positioning: Positioning the product as best for some
user group.
5. Competitor Positioning: A product can claim to be better in
some way than a named competitor.
6. Product category positioning: Product can be positioned as a
leader in certain product category.
7. Product category positioning: Product can be positioned as a
leader in certain product category.
8. Quality or Price positioning: the product can position itself as
offering the best quality or best value for money.
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Dr. Amitabh Mishra, giBS Rohini

33. Positioning Errors
• A company must avoid four major
positioning errors-
1. Under Positioning
2. Over Positioning
3. Confused Positioning
4. Doubtful Positioning
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Dr. Amitabh Mishra, giBS Rohini

34. 1. Under Positioning: a brand is seen as just an other entry in a
crowded market place.
2. Over Positioning: Buyers may have too narrow image of the
brand.
3. Confused positioning: In Confused positioning, buyers might
have a confused image of the brand. It may be a result of
making too many claims or changing the brands positioning
too frequently.
4. Doubtful positioning: In Doubtful positioning, buyers may
find it hard to believe the brand claims in view of the
product’s features, price or manufacturer.
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Dr. Amitabh Mishra, giBS Rohini

35. Several years ago an “ United Color of Beneton” featuring one black and one
white men handcuff together, promoting the racial harmony. It produced a
public outcry because people perceived it as
WHITE MAN arresting BLACK MAN.
(This confused positioning was the result of stereotype perception)
Dr. Amitabh Mishra, giBS Rohini

36. Dr. Amitabh Mishra, giBS Rohini

37. FOUR FOCUS STRATEGIES
FOR SERVICES
Dr. Amitabh Mishra, giBS Rohini 37

38. • Customers are too numerous, too widely
scattered, and too varied in their needs,
purchasing behavior, and consumption patterns.
• Firms themselves vary widely in their abilities to
serve different types of customers.
• So, rather than attempting to compete in an
entire market, each company needs to focus its
efforts on those customers it can serve best.
Dr. Amitabh Mishra, giBS Rohini 38

39. Focus means providing a relatively narrow product
mix for a particular market segment.
• The extent of a company's focus can be described on
two different dimensions-
1. Market focus
2. Service focus
• Market focus is the extent to which a firm serves
few or many markets, while service focus describes
the extent to which a firm offers few or many
services.
Dr. Amitabh Mishra, giBS Rohini 39

40. • These dimensions define the four basic focus
strategies-
1. Fully Focused Marketing Strategy
2. Service Focused Strategy
3. Market Focused Strategy
4. Unfocused Strategy
Dr. Amitabh Mishra, giBS Rohini 40

41. Fully Focused Marketing Strategy
• A fully focused organization provides a very
limited range of services to a narrow and specific
market segment.
• Example: Aspen Travel serves the specific needs of the
film production industry.
41
Dr. Amitabh Mishra, giBS Rohini

42. Service Focused Strategy
• Service-focused firms offer a narrow range of services
to a fairly broad market.
• Example: Capital Prestige Travel specializes in the narrow field of
discount cruise sailings, but reaches customers across a broad
geographic market through a telephone-based delivery system.
Dr. Amitabh Mishra, giBS Rohini 42

43. Market Focused Marketing Strategy
• A market-focused company concentrates on a narrow
market segment but has a wide range of services.
• Each Travel fest store serves a limited geographic market;
appealing to families and individuals planning vacation trips
rather than to business travelers, but offers a broad array of
services.
Dr. Amitabh Mishra, giBS Rohini 43

44. Unfocused Marketing Strategy
• Finally, many service providers fall into the
unfocused category because they try to serve
broad markets and provide a wide range of
services.
Dr. Amitabh Mishra, giBS Rohini 44

45. DEVELOPING A MARKET
POSITIONING STRATEGY
Dr. Amitabh Mishra, giBS Rohini 45

46. • Basic steps involved in identifying a suitable
market positioning strategy involves-
1. Market Analysis
2. Internal Analysis
3. Competitor Analysis
Dr. Amitabh Mishra, giBS Rohini 46

47. 1. Market Analysis
• Market analysis addresses such factors
as-
– Overall level and trend of the demand
– Geographical location of the demand
– Size of the demand
– Composition of the demand
Dr. Amitabh Mishra, giBS Rohini 47

48. 2. Internal Analysis
• Internal analysis addresses such factors as-
– Identification of organizational resource (financial,
labor and know-how, physical assets)
– Limitations or constraints
– Its goals (profitability, growth, professional
preference)
– Its values
Dr. Amitabh Mishra, giBS Rohini 48

49. 3. Competitor Analysis
• Competitor analysis addresses such factors as-
– Strength of organization
– Weakness of the organization
– Current positioning strategy
Dr. Amitabh Mishra, giBS Rohini 49

50. POSITIONING MAP
Dr. Amitabh Mishra, giBS Rohini 50

51. • The Positioning map is way of assessing the
competitive position of brands and businesses based
around two chosen dimensions.
• Positioning maps show where existing products and
services are positioned in the market so that the firm
can decide where they would like to place (position)
their product.
Dr. Amitabh Mishra, giBS Rohini 51

52. •Perceptual mapping on different brands for:
-Product Quality and
-Product Trustworthiness
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53. 53
•Perceptual mapping on different brands for:
-Marketing strategy and
-Accessibility

54. Dr. Amitabh Mishra, giBS Rohini 54