1. Chapter 8
Target Marketing & Positioning

2. Target Marketing
• Target Market
– Consists of a set of buyers who share common
needs or characteristics that the company
decides to serve.
– The process of evaluating segments and focusing
marketing efforts on a country, region, or group
of people that has significant potential to
respond

3. Criteria for Targeting: 9 W’s
• Who buys our product?
• Who does not buy it?
• What need or function does it serve?
• What are customers buying to satisfy the need
for which our product is targeted?
• What price are they paying?
• When is the product purchased?
• Where is it purchased?
• Why is it purchased?

4. FACTORS CONSIDERED IMPORTANT IN
THE SELECTION OF TARGET MARKET
STRATEGY
• 1. Company’s Resources
• 2. Product Homogeneity
• 3. Product Stage in the Life Cycle
• 4. Market Homogeneity
• 5. Competitive Marketing Strategy

5. 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

6. Basic Target Marketing Strategies

7. Target Marketing
Choosing a Market-Coverage Strategy
Company
Resources
Product
Variability
Product’s Life-Cycle
Stage
Market
Variability
Competitors’
Marketing Strategies

8. Strategies of Target Marketing
• Selecting Target Market Segments
– Undifferentiated (mass) marketing
– (A company’s attempt to appeal to the whole market with a single
basic marketing strategy intended to have a mass appeal.)
– Differentiated (segmented) marketing
– (a company’s attempt to appeal to two or more well defined market
segments with a marketing strategy tailored to each segment)
– Concentrated (niche) marketing
– (a company’s attempt to appeal to one well defined market segment
with one tailor made marketing strategy.)
– Micromarketing (local or individual)

9. Positioning is the act
of designing the
company’s offering
and image to occupy a
distinctive place in the
target market’s mind.

10. Positioning
• Positioning:
– The place the product occupies in consumers’ minds
relative to competing products.
– Typically defined by consumers on the basis of important
attributes.
– Involves implanting the brand’s unique benefits and
differentiation in the customer’s mind.
– Positioning maps that plot perceptions of brands are
commonly used.
• Product’s Position - the place the product occupies in
consumers’ minds relative to competing products; i.e.
Volvo positions on “safety”.
• Marketers must:
– Plan positions to give products the greatest advantage
– Develop marketing mixes to create planned positions

11. Bases for Positioning
• Features: physical traits and performance
• Benefits : feviquick, nerolac paint, fairglow soap
• Usage:- chawanprash for body resistance, pulsur for specific area
• Parentage:- sony vaio, tata indica, Fiat Palio
• Manufacturing process: Fab India Hand Crafted
• Ingredients:- 100% cotton, 100% wool made
• Endorsement:- Lalita ji surf add, sachin boost secret of energy
• Comparison:-
• Pro-environment: canon made from recycled material
• Product class:- dove as moisturizer not as toilet soap, pears as glycerin
soap
• Price/ quality:- Zenith computers “ multinational quality, Indian price”
• Country or geographic area:- German engineering, banarsi sari

12. Positioning must cover
• Who am I? ( the identity, family)
• What am I ? ( the functional capabilities
• For whom am I? ( whom do I serve best)
• Why me? ( why consumer should choose me
and not the other alternatives)

13. How many differences to promote as
positioning
• A USP of all product
• Lux “ beauty soap of female film stars”
• Promise toothpaste “ clove protection for teeth”
• “ best quality” ,
• “most advanced”
• “Best service”
• “Lowest price”

14. Differentiation and Positioning
• 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

15. Positioning Strategies
• Product Attributes & Benefits, Problem Solutions
• Colgate is positioned on fresh breath. Decay prevention and taste.
• Coseup fresh breath, cosmetic benefits
• Promise clove oil and gum care
• Price & Quality
• Nirma washing powder quality product at low price
• Zenith computer value for money
• Omega,rolex, mercedes,rolls royace higher price
• Specific Use, occasion & time
• Vicks vapo rub child's cold at night
• Iodex for sprain and muscle pains
• Burnol for burns
• Dettol antiseptic lotion
Positioning by corporate identity
tata, sony, godrej and seiko
• Positioning by product category
• Maruti maruti omni van, budgeted cars
• Seven up fresh cleen taste, thirst quenching
• Rajdoot rough & tuff
• Dove cleansing moisturiser

16. Positioning Strategies
• Against Other Products
• Product User
• Dabur chavanyaprash ayurvedic tonic for all as ages
• Zndu chawanyaprash for families with small children to build resistance
• Jhonson & jhonson for babies
• Against a Competitor

17. POSITIONING STRATEGIES
• Identifying possible competitive advantages
• Differentiation can be based on
– Products
– Services
– Channels
– People
– Image
– benefits

18. Product Differentiation
• Form- size, shape or physical structure
• Features- supplement to basic function.
• Performance Quality-the level at which the product’s
primary characteristics operates.
• Conformance Quality- the degree to which all the
produced units are identical and meet the promised
specifications.
• Durability- a measure of the product’s expected operating
life under natural or stressful conditions.
• Reliability- a measure of the probability that a product will
not malfunction within a specified time period.
• Reparability- a measure of the ease of fixing a product
when it fails
• Style
Quality can be communicated by choosing physical
signs and cues

19. Product Differentiation
Conform-
Fea- Perfor-
Form Quality ance
tures mance
Quality
Dura- Relia- Repair-
Style Design
bility bility ability

20. Services Differentiation
Ordering Customer
Installation
Miscellaneous
Ease Consulting
Services
Customer Maintenance
Delivery
Training & Repair

21. Services Differentiation
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance and repair

22. Personnel Differentiation
• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Communication

23. Channel Differentiation
• Coverage
• Expertise
• Performance

24. Image Differentiation
• Image is the way the public perceives the
company or its products.
• Identity is the way a company aims to
identify or position itself or its products.
• Symbols, colors, slogans, atmosphere,
• Events and employee behavior

25. Choosing the right competitive
advantage
• How many differences to promote?
• Unique selling proposition
• Several benefits
• Which differences to promote? Criteria include:
• Important
• Distinctive
• Superior
• Communicable
• Preemptive
• Affordable
• Profitable

26. Developing and communicating a
positioning strategy
All products can be differentiated to some
extent. But not all differences are meaningful
or worthwhile. A difference is worth
establishing to the extent that it satisfies the
following criteria :
• Important : The difference delivers a highly
valued benefit to a sufficient numbers of
buyers.
• Distinctive : The difference is delivered in a
distinctive way.

27. Developing and communicating a
positioning strategy
• Superior : The difference is superior to other
ways of obtaining the benefit.
• Preemptive : The difference cannot be easily
copied by competitors.
• Affordable : The buyer can afford to pay for
the difference.
• Profitable : The company will find it
profitable to introduce the difference.

28. Choosing a positioning strategy
• Value propositions ( the whole cluster of benefits the
company promises to deliver )represent the full
positioning of the brand
• Possible value propositions:
– More for More
– More for the Same
– More for Less
– The Same for Less
– Less for Much Less

29. Important
Profitable Distinctive
Differences Worth
Establishing
Affordable Superior
Preemptive

30. Using Product Descriptors
for Product Differentiation

31. Steps to Choosing and Implementing
a Positioning Strategy
• Step 1. Identifying a set of possible
competitive advantages: Competitive
Differentiation.
• Step 2. Selecting the right competitive
advantage.
• Step 3. Effectively communicating and
delivering the chosen position to the market.

32. Developing Competitive
Differentiation
Product Service
Areas for Competitive
Differentiation
Personnel Image

33. Some examples

35. Lays

36. Dove

37. Amul : The taste of India

40. Hindustan Unilever Limited

43. HDFC Standard Life Insurance