Targeting And Positioning

Rexona Yesmin

Effective Segmentation Criteria

Measurable size, purchasing power,

characteristics. Substantial large and profitable enough to serve. Accessible effectively reached and served. Differentiable conceptually distinguishable and respond differently to different mktg. mix elements and programs. Actionable effective programs can be formulated to attract and serve the segment.

Evaluating and Selecting the Market Segments

In evaluating different market segments, the firm must look at two factors :

The segments overall attractiveness. The companys objectives and resources.

Competition, buyers power, sellers power

After evaluating different segments, the company can consider five patterns of target market selection

Target Market Selection

Single-segment concentration

Strong knowledge of the segments needs Strong market presence Enjoy economies through specialization High return on investment Risk a particular segment can turn sour or a competitor may invade the segment.

Selective specialization diversifying firms risk. Product specialization Market specialization Full market coverage only very large firm can avail the opportunity.

Target Market Selection

Full market coverage can be done in two ways

Undifferentiated marketing Differentiated marketing differentiated marketing typically creates more total sales than undifferentiated marketing. But it increases costs like, product modification costs; manufacturing costs; administrative costs; inventory costs; promotion costs. Segment-by-segment invasion plans Updating segmentation schemes Ethical choice of marketing

Additional considerations

Positioning

Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. The result of positioning is the successful creation of customer-focused value proposition, a cogent reason why the target market should buy the product.

Positioning

Positioning according to rise and trout

They argue that well-known products generally hold a distinctive position in the consumers mind. They propose three strategic alternatives for a competitor. These are

to strengthen its own current position. To grab an unoccupied position. To de-position or re-position.

Product ladders Coke-Pepsi-RC Cola. The fourth strategy is

The exclusive club strategy.

Positioning

Positioning according to treacy and wiersema

They proposed a positioning framework called value disciplines. These are

Product leadership Operational excellence Customer intimacy Become best at one of the three value disciplines. Achieve an adequate performance level in the other two disciplines. Keep improving ones superior position in the chosen discipline so as not to lose out to a competitor. Keep becoming more adequate in the other two disciplines, because competitors keep raising customers expectations.

They suggest that a business should follow four rules for success.

Choosing a Positioning Strategy

The positioning task consists of three steps:

Identifying possible competitive advantages to build profitable relationships with target customers, marketer must understand customers needs better than competitors do and deliver more value. Positioning begins with differentiating the marketing offer so that it can give consumers superior value.

Product differentiation Service differentiation Channel differentiation People differentiation Image differentiation

Choosing a Positioning Strategy

Choosing the right competitive advantages:

How many differences/ideas to promote? USP. Crest toothpaste: anticavity protection. Not everyone agrees that single-benefit positioning is always best. Double benefit positioning may be more distinctive. Volvo: safest and most durable car. There are even cases of successful triple-benefit positioning. Acquafresh toothpaste: anticavity protection, better breath, whiter teeth.

As companies increase the number of claimed benefits for their brand, they risk disbelief and a loss of clear positioning. In general, a company must avoid four major positioning errors:

Underpositioning Crystal Pepsi Overpositioning Diamond Store. Confused positioning Doubtful positioning

Choosing a Positioning Strategy

Which differences/positioning to promote? Several different positioning possibilities:

Attribute positioning size Benefit positioning better breath Use or application positioning User positioning thrill or excitement seekers Competitor positioning Coke and RC Cola Product category positioning Quality or price positioning best value/best quality

important, distinctive, superior, communicable, preemptive, affordable, profitable

Choosing a Positioning Strategy

Selecting an overall positioning strategy:

Value proposition the full positioning of a brand-the full mix of benefits upon which it is positioned. Possible value propositions may be

More for more More for the same The same for less Less for much less More for less The same for more-losing The same for the same-marginal Less for more-losing Less for the same-losing

Developing a Positioning Statement

Positioning statement is a statement that summarizes company or brand positioning it takes this form:

To (target segment and need) our (brand) is (concept) that (point-of-difference). To busy professionals who need to stay organized, Palm is an electric organizer that allows you to backup files on your PC more easily and reliably than competitive products

Communicating and Delivering the Chosen Position

To deliver and communicate the desired position, all the companys marketing mix efforts must support the positioning strategy. Companies often find it easier to come up with a good positioning strategy than to implement it. Once a company has built the desired position, it must take care to maintain the position through consistent performance and communication.