Market Segmentation Targeting and Postioning

Market Segmentation,
Targeting, and Positioning

Targeting
Department of Pharmaceutical Technology
 Choosing one or more segments for which to design

your marketing operations
27
Evaluating Market Segments
 Segment Size and Growth

Analyze sales, growth rates and expected profitability.
 Segment Structural Attractiveness

Consider effects of: Competitors, Availability of
Substitute Products and, the Power of Buyers &
Suppliers.
 Company Objectives and Resources

Company skills & resources relative to the segment(s).
Look for Competitive Advantages.
Market Coverage Strategies
Company
Marketing Market
Mix
A. Undifferentiated Marketing
Company
Marketing Mix 1 Segment 1
Company
Segment 2
Marketing Mix 2
Company
Segment 3
Marketing Mix 3
B. Differentiated Marketing
Segment 1
Company
Marketing Segment 2
Mix
Segment 3
C. Concentrated Marketing
28
Identify the Appropriate Targeting Strategy
 Undifferentiated Strategy
 Differentiated
 Concentrated
29
Choosing a Market-Coverage Strategy
Company
Resources
Product
Variability
Product’s Stage
in the Product Life Cycle
Market
Variability
Competitors’
Marketing Strategies
30
Undifferentiated Strategy
Single
Marketing
Mix
Organization
Target Market
31
Differentiated Strategy
Marketing Mix 1
Marketing Mix 2
Organization
Target Market
32
Concentrated Strategy
Single
Marketing
Mix
Organization
Target Market
33
Cannibalization
Cannibalization
Situation that occurs when sales

of a new product cut into sales of
a firm’s existing products.
34
Strategies for reaching target markets
 No single, best choice strategy suits all firms

 Determinants of a market-specific strategy:
 Company resources
 Product homogeneity
 Competitors’ strategy
35
One-to-One Marketing
 An individualized marketing method that utilizes

customer information to build long-term,
personalized, and profitable relationships with each
customer.
- ‘share of customer’
36
Product Positioning
• Positioning starts with a product. A Piece of

merchandise, a service, a company, an institution, or
even a person... But positioning is not what you do to a
product. Positioning is what you do to the mind of
the prospect. That is, you position the product in the
mind of the prospect.
Al Ries and Jack Trout (1981)

Positioning for Competitive Advantage
• Product’s Position - the place the product

occupies in consumers’ minds relative to
competing products; i.e. Volvo positions on
“safety”.
• Marketers must:
– Plan positions to give products the greatest advantage
– Develop marketing mixes to create planned positions
Positioning for Competitive
Advantage: Strategies
Product Product
Class Attributes
Away from Benefits

Competitors H
G
Offered
C
D
Against a E
B
Usage
Competitor F
Occasions
Users
Steps to Choosing and Implementing
a Positioning Strategy
• Step 1. Identifying a set of possible competitive

advantages: Competitive Differentiation.
• Step 2. Selecting the right competitive advantage.
• Step 3. Effectively communicating and delivering the

chosen position to the market.
Developing Competitive Differentiation
Product Service
Areas for Competitive

Differentiation
Personnel Image
Selecting the Right Competitive
Advantages
Important
Profitable Criteria Distinctive

for
Determining
Which
Differences
Affordable to Superior
Promote
Preemptive Communicable
Positioning of Procter & Gamble Detergents
Market
Brand Positioning
Share
Tide Tough, powerful cleaning 31.1%
Cheer Tough cleaning, color protection 8.2%
Bold Detergent plus fabric softener 2.9%
Gain Sunshine scent and odor-removing formula 2.6%
Era Stain treatment and stain removal 2.2%
Dash Value brand 1.8%
Oxydol Bleach-boosted formula, whitening 1.4%
Solo Detergent and fabric softener in liquid form 1.2%
Dreft Outstanding cleaning for baby clothes, safe 1.0%
LO9
Ivory Snow Fabric & skin safety on baby clothes 0.7%
Ariel Tough cleaner, aimed at Hispanic market 0.1%
Product Positioning Dimensions
• Product Attributes / Differences / Benefits
• Product User / Usage
• By Association
• Problem Solution
• Against a Competitor / Away from Competitors

Perceptual Mapping
A means of displaying or graphing, in two or more

dimensions, the location of products, brands, or groups
of products in customers’ minds.
Perceptual Maps
Corolla Celica Avalon Camry

Expensive
Sporty Conservative
Inexpensive
Product Positioning using perceptual maps
High moisturizing
Zest
Tone 7
4
Lever 2000
Dove
5 2
Safeguard
Coast
Lux 8
Nondeodorant 3 Deodorant
1
Dial
Lifebuoy
Lava
6
Low moisturizing
Repositioning
Changing consumers’ perceptions of a brand in relation to

competing brands.
Positioning and Product Differentiation

Market Segmentation Targeting and Postioning

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Market Segmentation,

Targeting, and Positioning

 Choosing one or more segments for which to design

 Segment Size and Growth

 Segment Structural Attractiveness

 Company Objectives and Resources

Situation that occurs when sales

 No single, best choice strategy suits all firms

 An individualized marketing method that utilizes

• Positioning starts with a product. A Piece of

Al Ries and Jack Trout (1981)

• Product’s Position - the place the product

Away from Benefits

• Step 1. Identifying a set of possible competitive

• Step 2. Selecting the right competitive advantage.

• Step 3. Effectively communicating and delivering the

Areas for Competitive

Profitable Criteria Distinctive

• Product Attributes / Differences / Benefits

• Product User / Usage

• Against a Competitor / Away from Competitors

A means of displaying or graphing, in two or more

Corolla Celica Avalon Camry

Changing consumers’ perceptions of a brand in relation to

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