The document discusses the steps involved in market segmentation, targeting, and positioning for competitive advantage. It covers identifying bases for segmenting the market, developing segment profiles, evaluating segment attractiveness, selecting target segments, developing positioning strategies for targets, and developing marketing mixes for each segment. Key aspects include segmenting based on geographic, demographic, psychographic and behavioral factors, choosing segmentation levels like mass, niche, or individual marketing, and selecting positioning strategies to communicate the right competitive advantages.

1. Market Segmentation, Targeting, and Positioning for Competitive Advantage

2. Steps in Market Segmentation, Targeting, and Positioning Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment

3. Step 1. Market Segmentation Levels of Market Segmentation Through Market Segmentation, Companies Divide Large, Heterogeneous Markets into Smaller Segments that Can be Reached More Efficiently And Effectively With Products and Services That Match Their Unique Needs. Mass Marketing Same product to all consumers (no segmentation, i.e Tomato Seller) Segment Marketing Different products to one or more segments (some segmentation, i.e. Marriot)

5. Ford’s Model T Followed a Mass Market Approach

6. Pepsi India

7. Toyota Scion Targets Gen Y Consumers

8. FERRARI

10. Generation X

11. Step 1. Market Segmentation Levels of Market Segmentation Niche Marketing Different products to subgroups within segments (more segmentation, i.e. Standard or Luxury Cars) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation,boutiques) Local Marketing Tailoring brands/ promotions to local customer groups, i.e KFC Individual Marketing Tailoring products and programs to the needs of individual customers, i.e. Dell

12. Limousine

13. Step 1. Market Segmentation Geographic Segmentation Density or Climate City or Metro Size World Region or Country

21. Baby Boomers: A profitable Market

22. Step 1. Market Segmentation Psychographic Segmentation Social Class Lifestyle Personality Divides Buyers Into Different Groups Based on:

27. Step 2. Market Targeting Market Coverage Strategies Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 Company Marketing Mix Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3 Market A. Undifferentiated Marketing B. Differentiated Marketing C. Concentrated Marketing

29. Step 2. Market Targeting Choosing a Market-Coverage Strategy Company Resources Product Variability Product’s Stage in the Life Cycle Market Variability Competitor’s Marketing Strategies

32. Step 3. Choosing a Positioning Strategy Step 1. Identifying Possible Competitive Advantages Step 2. Selecting the Right Competitive Advantage Step 3. Communicating and Delivering the Chosen Position

34. Identifying Possible Competitive Advantages Services Differentiation i.e. Delivery, Installation, Repair Services, Customer Training Services Product Differentiation i.e. Features, Performance, Style & Design, or Attributes Image Differentiation i.e. Symbols, Atmospheres, Events Personnel Differentiation i.e. Hiring, Training Better People Than Competitors Do

35. Choosing the Right Competitive Advantages Criteria For Determining Which Differences To Promote Affordable Superior Profitable Preemptive Distinctive Important Communicable Unique Selling Proposition

36. Selecting an Overall Positioning Strategy Benefits Price More The same Less More The Same Less More for More e.g: mont blanc, mercedes More for the Same e.g: lexus MORE FOR LESS e.g: zong, maggi vsknorr The same for less e.g: dell, wal mart, imtiaz store Less for much less e.g: marriot vs. resturants, emirates vs. PIA