Market Positioning:

Positioning refers to the place that a brand occupies in the mind of the customer and how it is
distinguished from products from competitors. In order to position products or brands,
companies may emphasize the distinguishing features of their brand (what it is, what it does and
how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or
luxurious, entry-level or high-end, etc.) through the marketing mix. Once a brand has achieved a
strong position, it can become difficult to reposition it.
Positioning is one of the most powerful marketing concepts. Originally, positioning focused on
the product and with Ries and Trout grew to include building a product's reputation and ranking
among competitor's products. Primarily, it is about "the place a brand occupies in the mind of its
target audience".[1][2] Positioning is now a regular marketing activity or strategy. A national
positioning strategy can often be used, or modified slightly, as a tool to accommodate entering
into foreign markets.[1][3]
It has also been called product positioning, but that is a limiting description because it focuses on
the product itself, while the positioning marketing technique focuses on the minds of the
consumers.
Positioning is part of the broader marketing strategy which includes three basic decision levels,
namely segmentation, targeting and positioning, sometimes known as the S-T-P approach:

The STP approach highlights the three areas of decision-making

Segmentation: refers to the process of dividing a broad consumer or business market,
normally consisting of existing and potential customers, into sub-groups of consumers
(known as segments)[24]
Targeting: refers to the selection of segment or segments that will become the focus of
special attention (known as target markets).[25]
Positioning: refers to an overall strategy that "aims to make a brand occupy a distinct
position, relative to competing brands, in the mind of the customer".[26]
Positioning Statement
Both theorists and practitioners argue that the positioning statement should be written in a format
that includes an identification of the target market, the market need, the product name and
category, the key benefit delivered and the basis of the product's differentiation from any
competing alternatives.[27] Positioning statements should be written in the following format: "For
(target customer) who (statement of the need or opportunity), the (product name) is a (product
category) that (statement of key benefit – that is, compelling reason to buy). Unlike (primary
competitive alternative), our product (statement of primary differentiation)." [27] An annotated
example of how this positioning statement might be translated for a specific application appears in the
text-box that follows.

Annotated example of a Positioning Statement

To upper income, other brand switcher car buyers [target audience];
Volvo is a differentiated brand of prestige automobiles [marketing strategy],
That offers the benefits of safety [problem removal] as well as prestige [social approval].
The advertising for Volvo, should emphasize safety and performance [message strategy] and
Must mention prestige as an entry ticket to the category
And will downplay its previous family-car orientation in the interest of appealing to a broader
range of users.
Positioning process
To be successful in a particular market a product must occupy an "explicit, distinct and proper
place in the minds of all potential and existing consumers". It has to also be relative to other rival
products with which the brand competes.
Visibility and recognition is what product positioning is all about as the positioning of a product
is what the product represents for a buyer the business is targeting. In this day and age markets
are showing an increase in the intensity of rivalries and competition, which gives the buyer a
greater choice and identification of the products certain intrinsic values that then become critical
for the company to gain customer purchase of their products. It is vital that a product or service
needs to have a clear identity and placement to the needs of the consumers targeted as they will
not only purchase the product, but can warrant a larger margin for the company through
increased added value.
Generally, the brand positioning process involves segmentation, targeting and positioning.
Approaches to positioning
Hungry Jack's slogan clearly positions the burger against the market leader

There are a number of different approaches to positioning:

Positioning against a competitor
e.g. Hungry Jack's tastes better (with implicit assumption 'better than the market leader,
McDonald's)
J & J Baby Bath Products are positioned against a user or segment, namely children
Positioning within a category
e.g. Within the prestige car category, Volvo is the safe alternative
Positioning according to product benefit
e.g. Toothpaste with whitening or Tartar control (or both)
Haigh's Chocolates stopped making chocolate Easter bunnies, replacing them with Easter
bilbies as culturally appropriate symbol of Easter in Australia
Positioning according to product attribute
e.g. Dove is one quarter moisturiser
Positioning for Usage Occasion
e.g. Cadbury Roses Chocolates—for gift giving or saying 'Thank-you'
Positioning along price lines
e.g. a luxury brand or premium brand
Positioning for a User
e.g. Johnson and Johnson range of baby products (No Tears Shampoo)
Positioning by cultural symbols
e.g. Australia's Easter Bilby (as a culturally appropriate alternative to the Easter Bunny)
Market Target:
A target market is a group of customers within the serviceable available market that a business
has decided to aim its marketing efforts towards. A well-defined target market is the first element
of a marketing strategy. Product, price, promotion, and place are the four elements of a
marketing mix strategy that determine the success of a product or service in the
marketplace[citation needed]. It is proven that a business must have a clear definition of its target
market as this can help it reach its target consumers and analyze their needs and suitability.

A target market is a group of people considered likely to buy a product or service.[4] A target
market consists of customers that share similar characteristics, such as age, location, income and
lifestyle.

Target markets can be separated into primary and secondary target markets. Primary target
markets are those market segments to which marketing efforts are primarily directed and
secondary markets are smaller or less important. For instance, the primary target market for a
jewellery store might be middle aged women who care about fashion, and their secondary target
market could be middle aged men who may want to buy gifts for the women in their lives.
Target markets or also known as target consumers are certain clusters of consumers with similar
or the same needs that most businesses target their marketing efforts in order to sell their
products and services. Market segmentation including the following:

Geographic - Addresses, Location, Climate, Region

Demographic/socioeconomic segmentation - Gender, age, wage, career, education.

Psychographic - Attitudes, values, religion, and lifestyles

Behavioral segmentation - (occasions, degree of loyalty)

Product-related segmentation - (relationship to a product)[7]
Marketing Mix (4 P's)
The 4p's, also widely known in the market as the Marketing Mix, is a business tool commonly
used in marketing that covers four pieces to help a particular business successfully reach and
deliver its products to target consumers. This four piece includes Product, Price Promotion, and
Place. It is proven to be known that marketing mix is a crucial part that must be implemented in
marketing as it has the ability to determine a group of a particular target consumer's needs, likes,
and most importantly suitability.[17]
Marketing mix is a combination of all of the factors at the command of a marketing manager to
satisfy the target market McCarthy (1964).

Strategies for reaching target markets

Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing
or mass marketing, differentiated marketing, concentrated marketing, and micromarketing/
nichemarketing.
Mass marketing (Undifferentiated Marketing)
Differentiated marketing strategy
Concentrated marketing Or Niche marketing
There are 5 key aspects or steps, which are required to achieve successful niche marketing.
1: develop a marketing plan;
2: focus your marketing program;
3: niche to compete against larger firms;
4: niche based upon expertise;
5: develop niches through mergers.[20]
The psychology of target marketing
A principal concept in target marketing is that those who are targeted show a strong affinity or
brand loyalty to that particular brand. Target Marketing allows the marketer or sales team to
customize their message to the targeted group of consumers in a focused manner. Research has
shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared
knowledge and ethnic salience all promote positive effects on the target market. Research has
generally shown that target marketing strategies are constructed from consumer inferences of
similarities between some aspects of the advertisement (e.g., source pictured, language used,
lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the
represented style). Consumers are persuaded by the characteristics in the advertisement and those
of the consumer.[22]