Targeting and Positioning

Target Marketing
Develop measure of segment attractiveness.

Select target segmentation.

Market Positioning
Develop positioning for target segments.

Develop a marketing mix for each segments.

Target Marketing
Consists of a set of buyers who share common needs

or characteristics that the company to serve. Evaluating market segments: Segment size and growth. Segment structural attractiveness Level of competition Substitute products Power of buyers Power of suppliers Company objectives and resources

Target marketing
Selecting target market segments: Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micromarketing (local or individual)

Choosing a target marketing strategy

Considerations includes: Company resources The degree of product availability Products life-cycle stage Market variability Competitors marketing strategies

Target Marketing
Social responsible targeting : Some segments, especially children, are at special risk Many potential abuses on the Internet, including fraud internet shoppers Controversy occurs when the methods are questionable

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 brands unique benefits and differentiation in the customers mind. Positioning maps that plot perceptions of brands are commonly used.

Choosing a positioning strategy

Topics Differentiation can be based on

Identifying possible

Products Services Channels People Image

competitive strategy Choosing the right competitive advantage Choosing a positioning strategy

Choosing a positioning strategy

Topics How many differences to promote?

Identifying

possible competitive strategy Choosing the right competitive advantage Choosing a positioning strategy

Unique selling

proposition Several benefits

Developing a Positioning Statement

Positioning statements summarize the company or

brand positioning: o EAMPLE : To ( target segment and need) our (brand) is (concept) that (Point of difference)

Points of Parity and Points of - Difference

POP

POD

Establishing Category Membership: Announcing category benefits Comparing to exemplars Relying on the product descriptor

Choosing POPs and PODs

Relevance

Distinctiveness
Believability

There are three key deliverability criteria: Feasibility Communicability Sustainability

Creating POPs and PODs

Present Separately

Leverage Equity of Another Entity

Redefine The Relationship

Example

McDonalds Internet: Points of Parity, Points of Difference By Tim Calkins Yesterday McDonalds announced that it would be introducing free internet access. This is a good move and a long overdue one. There are two important concepts when it comes to positioning: points of parity and points of difference. When a brand establishes a frame of reference, or competitive set, there are obvious points of parity. These are features and benefits offered by basically everyone. They do not differentiate, but a brand that falls short on these dimensions will surely be hurt. For example, all small cars have four wheels, a steering wheel, lights and pretty good gas mileage. These are all points of parity Points of difference are the things that help a brand stand out. These are the factors that drive purchase. Small cars are all pretty similar but the Mini Cooper is uniquely sporty and fun to drive. For McDonalds, internet access is fast becoming a point of parity. In the world of coffee establishments, in particular, internet access is almost universal. Starbucks, Caribou, Argo and my favourite local Chicago coffee shop, Intelligentsia, all offer it. McDonalds has to offer free internet simply to be a viable competitor in the space. This move will result in some lost revenue in the short run, as people no longer have to pay for internet access, but it will protect share. Marketing isnt always about growth. Sometimes companies have to focus on improving the product simply to keep up. This is one of those times for McDonalds.