Lecture 5 Mm

8/3/2019 Lecture 5 Mm

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Targeting and Positioning


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Target Marketing

Develop measure of segment attractiveness.

Select target segmentation.


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Market Positioning

Develop positioning for target segments.

Develop a marketing mix for each segments.


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Target Marketing

Consists of a set of buyers who share common needsor 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


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Target marketing

Selecting target market segments:

Undifferentiated (mass) marketing

Differentiated (segmented) marketing

Concentrated (niche) marketingMicromarketing (local or individual)


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Choosing a target marketing strategy

Considerations includes:

Company resources

The degree of product availability

Products life-cycle stageMarket variability

Competitors marketing strategies


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Positioning

The place the product occupies in consumers mindsrelative 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.


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TopicsDifferentiation can bebased on

Identifying possible

competitive strategy Choosing the right

competitive advantage

Choosing a positioning

strategy

Products

Services Channels

People

Image

Choosing a positioning strategy


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TopicsHow many differences topromote?

Identifying possible

competitive strategy Choosing the right

competitiveadvantage

Choosing a positioningstrategy

Unique selling

proposition Several benefits

Choosing a positioning strategy


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Developing a Positioning Statement

Positioning statements summarize the company orbrand positioning:

o EAMPLE : To ( target segment and need) our

(brand) is (concept) that (Point ofdifference)


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Points of Parity and Points of - Difference

POP

POD

Establishing Category Membership:

Announcing category benefits Comparing to exemplars

Relying on the product descriptor


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Choosing POPs and PODs

Relevance

Distinctiveness

Believability

There are three key deliverability criteria: Feasibility

Communicability

Sustainability


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Creating POPs and PODs

Present Separately

Leverage Equity of Another Entity

Redefine The Relationship


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Example

McDonalds Internet: Points of Parity, Points of DifferenceBy Tim Calkins YesterdayMcDonalds 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 andpoints 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 willsurely be hurt. For example, all small cars have four wheels, a steering wheel, lights andpretty good gas mileage. These are all points of parity Points of difference are the thingsthat help a brand stand out. These are the factors that drive purchase. Small cars are allpretty similar but the Mini Cooper is uniquely sporty and fun to drive. ForMcDonalds, internet access is fast becoming a point of parity. In the world of coffeeestablishments, in particular, internet access is almost universal. Starbucks, Caribou,Argo and my favourite local Chicago coffee shop, Intelligentsia, all offer it. McDonaldshas to offer free internet simply to be a viable competitor in the space. This move willresult in some lost revenue in the short run, as people no longer have to pay for internetaccess, but it will protect share.Marketing isnt always about growth. Sometimes companies have to focus on improvingthe product simply to keep up. This is one of those times for McDonalds.

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Lecture 5 Mm