Target Market

MN-412-E
May 2021
Market Selection: Target Customers and Positioning
Authorised for educator review use only by Fayola Nicholas, Arthur Lok Jack Graduate School of Business. Expiry date 4-Apr-2024
Jorge González
Developing a marketing strategy starts with the analysis of two key elements of any market:
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supply and demand. These two analyses guide market selection and operational decisions
related to the design of the offering and the go-to-market strategy.1 In this note, we will consider
the two main aspects of market selection. First, we will look at the selection of target customers:
the process of identifying the customer segment or segments that we will focus on with our
commercial offering. Second, we will consider the choice of positioning. And finally, we will turn
our attention to commercial analysis of the elements that help ensure the sustainability of a
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position in the market.

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Why Select a Market If It Means Saying No?

Professor Pankaj Ghemawat used the term “commitment” as a key principle to explain the
persistence of company strategies. A decision is strategic when it commits resources for the long
term. And market selection implies more of a commitment than any other commercial decision.
When we decide how to define our offering and position ourselves as the best alternative for a
particular customer segment, we are making the company’s biggest commercial bet. Changing
this focus often requires profound changes in what we produce and in our commercial approach.
Selecting a market is a strategic decision. As Professor Michael Porter wrote: “Strategy means
saying no to certain kinds of things.”
Selecting a target customer and positioning an offering means thinking about what you aspire
to and, at the same time, defining what you do not intend to be. You decide that, of all the
existing options, you are going to forgo most of them, even if some of the alternatives are also
tenable. When a company defines its target customer segment as young people, for example,
this does not mean there are no market opportunities in other segments of the population.
But positioning also means saying no. When we claim that a product works best or is particularly
good for something in particular, we are also implying that it may not be optimal for everything
1 See Jorge González, “Defining the Marketing Strategy”, MN-410-E, IESE, IESE Publishing, 2021.
This technical note was prepared by Professor Jorge González. May 2021.
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MN-412-E Market Selection: Target Customers and Positioning
other than that. In short, strategy implies setting bounds. And it is important to ask why we put
such restrictions on ourselves.
Clear targeting and positioning are useful because they help us decide what to prioritize.
Whenever we choose activities in which we are not successful, two things happen. First,
resources are allocated to activities that are not very productive. Second, the company ceases
to direct those resources towards activities that might have been essential to achieve or
maintain an advantage over competitors. Therefore, working with a well-defined market in mind
helps us focus on the right priorities when allocating resources. These priorities are reflected in
the way we define the features and functionalities of our product or service and in the
commercial investments we make to bring our offering to market.
Another reason to define the target market precisely is that seeking to develop offerings that
satisfy everyone often forces us to make trade-offs. Such offerings also tend to be more
expensive and less usable than alternatives designed to perform specific tasks. To be successful
in a market, you have to aspire to do something very well. Otherwise, it is very difficult to end

up doing it better than others.
Criteria for Selecting a Target Customer

William Francis Sutton (1901–80) was a well-known bank robber in the U.S. His criminal career
suffered a serious setback when he was captured and imprisoned for the first time in 1952. In an
interview conducted during one of his stints in jail, a reporter asked him why he robbed banks.
“Because that’s where the money is,” he replied. Market selection could be summed up in a
similar way. In any case, it is worth examining a series of criteria that can help us assess the
attractiveness of different markets in a more precise way.
Size and Growth

The first criterion is the size of the opportunity. Estimating the number of customers potentially
interested in a value proposition and multiplying that figure by an average price is usually the
best way to infer the size of a market. Since markets are dynamic in nature, it is also advisable
to estimate expected growth.
In this analysis, we need to incorporate, in a realistic way, the most significant components of
any segmented view of the market: geography, functionality and price levels, customer
or company profiles, and other factors that facilitate segmented decision-making. The logic of
market selection hinges precisely on the idea that, of all the customer segments, we will focus
only on some of them.
Apart from this key criterion, we can consider others, which are outlined below. These factors
are presented in relation to the three questions that we need to answer for customers to get
them to buy from us: 1) Why? 2) Why you? and 3) Why now?
2 IESE Business School–University of Navarra

Market Selection: Target Customers and Positioning MN-412-E
Why? A Truly Compelling Reason To Buy2

According to Geoffrey Moore, a second key criterion when selecting a market is to look for
customers who have a truly compelling reason to buy. In other words, the value proposition
should match the target customer’s needs as closely as possible. We should therefore focus on
segments that are particularly interested in what the company is currently offering or may in the
future. To the extent that the value proposition provides a customer segment with greater
benefits, it is to be expected that these customers will be 1) more willing to buy and 2) more
willing to pay a higher price. The selection of the target customer is always based on an analysis
of the value proposition that takes into account the needs of different types of customers.3
Why You? A Value Proposition That Is Superior to Those of Competitors
The third criterion (which should always be considered together with the second) is the
superiority of our value proposition in relation to those of our competitors. There is no point in

identifying the customer segment that places the most value on certain dimensions of our
offering if there is a competitor in that market with a better one. The attractiveness of a target
customer depends, therefore, on the strengths that a company has to compete successfully
against market alternatives.
The combination of these two factors—a good fit between the value proposition and the
customer’s needs and the superiority of the offering—is the key to high profitability in a target
market. Being the go-to alternative to satisfy a need that is highly valued by customers is the
best way to get a good selling price and achieve attractive contribution margins.
Why Now? Access to Customers Who Are Not Budget-Constrained or Locked

in by Previous Decisions
In addition to searching for large, profitable customer segments, we need to consider several
other points to help ensure success in marketing. For a company to be effective in this area, two
things need to happen: the company must be able to sell, and customers must be able to buy.
Access
In addition to a significant and differentiated value proposition, we need to gauge whether the
company is in a position to sell to the target customers identified. To do this, we must consider
what access we have to different market segments. In other words, do we have the financial and
human resources (salespeople, influencers, brand advocates, partners, distribution channels,
etc.) to present our value proposition to these customers? In fact, this analysis often starts with
the question, “With the resources I have available for marketing, what’s the most worthwhile
customer segment I can gain access to?” In any case, it is always good to include the cost of sales
and marketing when analyzing the profitability of various alternatives, and we should not
underestimate the time it takes to build market access capabilities.
2 Thispoint is based primarily on ideas developed by Geoffrey Moore in his books. See, for example, Geoffrey Moore and
Regis McKenna, Crossing the Chasm: Marketing and Selling Technology Projects (New York: HarperCollins, 2009).
3See the technical note: Jorge González, “Supply-Side Analysis: The Value Proposition and Evaluation of Competitors –
MN-411-E” (IESE Academic Material), IESE Publishing, 2021, in which two methods for analyzing value propositions are described.
IESE Business School–University of Navarra 3

Customers Who Are Not Budget-Constrained and Who Consider Switching Costs
Acceptable
Finally, in the process of selecting a target customer we need to consider which of the various
customer segments are in a position to buy. This involves two steps: first, we must assess whether
the target customer can afford the offering; and second, we must ask ourselves whether any
decisions they have made in the past might prevent them from making a new purchase.
Considering whether the target customer has the necessary budget is especially important when
the customer and the product user are not the same. This is always the case in industrial purchases
(B2B), and sometimes in business-to-consumer markets (B2C). In B2B markets, you should always
consider whether the person you are talking to has the budget to make the purchase or not. If they
do not, we should ask ourselves whether they can “create it” (for example, because our
interlocutor is the CEO) or what we need to do to help that person make it happen.
Finally, we need to consider whether the various customer segments have switching costs,

which in many cases are not financial. Such costs may, for example, be reputational. Giving up
an existing supplier in a company after having invested heavily in that partner entails a significant
cost for the manager who makes the decision. Learning costs are another very significant non-
financial cost. In short, we need to consider whether or not we have entrenched competitors in
a particular segment who will be difficult to dislodge because of the involvement of decision-
makers who have organizational or personal reasons to resist change.
Positioning
Some authors have defined positioning as “the battle for the consumer’s mind.”4 The main
recommendation for successful positioning is always “be the first.” If that is not possible,
positioning will always be in relation to competitors. Positioning is a long-term decision that
connects the marketing function with a company’s competitive strategy at a deep level.
Positioning describes how the value proposition, product or service is situated in relation to the
alternatives that competitors are offering for the target customer. This definition is often
aspirational: it is not what we are, but what we say we are, with the intention of achieving that
status in the consumer’s mind. It highlights the promise that makes us preferable to other
options and the reasons why we will be able to deliver on it. All of these factors are captured in
a company’s positioning statement.
How To Write a Positioning Statement

While there is no one-size-fits-all formula for writing a positioning statement, they all share a
similar structure. The main elements are as follows:
 Target customer: the customers the value proposition is aimed at.
 Frame of reference: the category and/or main competitors.
4 For those interested in delving into this subject, the key book to read is Al Ries and Jack Trout, Positioning: The Battle for
Your Mind (New York: McGraw Hill Professional, 2001).

 Unique selling proposition: the point of difference and associated key benefit that we
intend to highlight (i.e., the compelling reason to buy).
 Reason to believe: why customers should believe we can deliver on the promise that our
USP embodies.
See Exhibit 1 for two templates that flesh out this general approach. The first is better suited to
business-to-consumer markets (B2C); the second is especially recommended for industrial
markets (B2B).
Characteristics of Good Positioning
The characteristics of good positioning can be defined in terms of how it should relate to the
customer, the company and competitors.5

Important for the Customer: Relevance and Resonance
The first characteristic of good positioning is that it should focus on points that are important
for the customer. There are various ways to diminish the importance of positioning. One is not
to be relevant, which is what happens when positioning focuses on something other than
customer needs. In other words, the compelling reason to buy is not very… compelling, either
because you do not understand what the customer is looking for/needs or because it is not a
very significant need/opportunity. In many cases, this is the result of having wrongly identified
the target market or done a poor job of analyzing it.
Another way to diminish the importance of positioning is to communicate it in such a way that it fails
to resonate as it should. This happens when the message we convey is not clear—because it is not
well explained (too many things are spoken of in terms that are too general) or because what is
promised is not credible. The concept of a “reason to believe” focuses on preventing the latter issue.
Fit With the Company: Consistent and Ownable

The second characteristic of good positioning is that it should be a good fit with the company or
brand that supports it. When we assess this fit, there are two points to consider. The first is
consistency, which affects both the credibility of positioning and its effectiveness. If we say
things that are inconsistent in an attempt to mean something to everyone, we run the risk of
meaning nothing to anyone.
When considering the fit between positioning and the brand/company, we also need to assess
whether a position is “ownable.” Good positioning reflects a victory in the battle for the
consumer’s mind referred to above. It may be that the position you are aiming to achieve has
been captured by another competitor who has invested in it over years, in which case, unseating
that rival may be an impossible undertaking.
5See the “Three C`s” model in: Jill Avery and Sunil Gupta, “Marketing Reading: Brand Positioning,” Core Curriculum
Readings Series, Harvard Business School Publishing 8197, 2014, 10-21.

Unique in Relation to Competitors: Differentiated and Sustainable

The third characteristic of good positioning is established in relation to competitors. Positioning
makes us unique because it highlights a differentiation from competitors that is, ideally, sustainable.
The term “unique selling proposition” (USP) encapsulates the importance of making the pursuit of
uniqueness a competitive priority. Undifferentiated offerings remain mired in the logic of
price competition, which leads inexorably to reduced margins and lower profitability. Finally,
differentiation has a special value when it is based on elements that cannot be easily replicated by
competitors. Sustainability—another key point—is discussed in depth in the following section.
Sustainability of a Market Position
To speak of sustainable differentiation is to enter fully into the terrain of competitive strategy.
In this note, we will briefly outline the most important concepts that affect analysis of long-term

commercial decisions, which, as such, should take account of this strategic dimension. We will
start by taking a look at the three value disciplines that enable companies to sustain their
positioning in the market. We will then focus on the elements that help sustain these ways of
competing. The importance of these “commercial assets and capabilities” will be considered in
relation to the competitive arena in which a company operates. Finally, we will turn our
attention to threats to the sustainability of a market position that can arise due to changes in
the commercial environment.

Ways to Compete: The Three Value Disciplines

To connect commercial analysis and competitive strategy, we need to address the question,
“Why should customers buy from me?” which has three possible answers: 1) because I’m
cheaper, 2) because I’m better, or 3) because I’m the best fit. The Value Disciplines Model6
identifies ways to compete with the goal of achieving one of three objectives:
 Operational excellence. When a company’s objective is to produce at a low cost in order
to sell at a low price, it competes through efficiency in its operations.
 Product leadership. If a company’s way of competing focuses on offering something that
others do not, its competitive levers will be innovation, research and development, and
everything that enables the firm to deliver a unique offering.
 Customer intimacy. Companies often have offerings and production processes that are
similar to those of their competitors. In such cases, the most important competitive lever
is the ability to adapt their offerings to certain types of customers in a differentiated
way. In other words, these companies compete based on their commercial capabilities.
In the next section, we will identify the commercial assets and capabilities that bolster these
ways of competing and help sustain positioning in the market.
6 See
Michael Treacy and Fred Wiersema, The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus,
Dominate Your Market (Hachette UK, 2007).

Commercial Assets and Capabilities: What Do You Have and What Do You
Know How To Do?
A key aspect of strategic analysis is to understand what internal factors enable a company
to compete successfully. We will now consider two types of factors: commercial assets and
commercial capabilities.
 Commercial assets: all the elements that a company owns and can harness to market its
value propositions.
 Commercial capabilities: the knowledge and skills that people in the company have for
development and marketing.
The following sections outline the commercial assets and capabilities that bolster product
leadership and customer intimacy. Other general assets—such as financial resources and
operational capabilities, which are also necessary—are not considered. Having an overflowing

cash register helps a lot in selling; poor manufacturing processes are an obstacle. The factors
identified below are strictly commercial in nature.
Commercial Assets and Capabilities for Product Leadership

The first group of assets for achieving product leadership are patents, technologies and other
know-how owned by the company that can be harnessed to develop differentiated value
propositions. The capabilities needed to generate assets of this kind are usually based on the
effectiveness of research, development and innovation within the company.
These assets and capabilities are reflected in a company’s portfolio of products/services and
brands and their relevance to target customers. Examples include superior products and brands
with high recognition (or those that are well regarded, such as brands that are prestigious or
have affinity with a particular audience).
Commercial Assets and Capabilities for Achieving Customer Intimacy

Commercial assets do not necessarily have to be things that appear on a company’s balance
sheet. In fact, one of the most important is a firm’s customer base, which is tied to its market
share. A leadership position in sales greatly enhances the power a company has over its
distribution channels and the attention it receives from customers in the market. There are few
things better than being the “market leader.” A company’s ability to develop specific offerings
for different market segments facilitates its ability to stay ahead of the pack.
Finally, commercial assets also include structures that enable a company to access the market
and sell its products, such as having its own stores or sales teams, digital properties, or marketing
agreements with distribution channels, influencers and brand advocates. Capabilities for
developing these assets are found mainly in the marketing and sales teams that develop and
manage them.

Sustainability of Positioning in Different Competitive Arenas

As explained in a previous note, value propositions may be situated in various competitive
arenas; namely, commodities, convenience, premium or value.7 In this section, we will define
the value disciplines that enable companies to compete successfully in each of these four arenas
(and the assets and capabilities that support them).
Commodities
In the commodities arena, companies compete on the basis of operational excellence and the
key factor is operations. The capabilities that have the most impact in this arena are those linked
to developing operational efficiency in marketing in order to lower sales costs. This operational
efficiency may be linked to the use of technology or to a position of market dominance that
allows fixed marketing costs to be absorbed within a larger scale of operations.

Convenience
In the arena of convenience products, competition is based mainly on customer intimacy.
The most valued asset is a high market share because this enables a company to stand out as a
leading alternative for consumers and channels. Having a broad customer base is also a big
advantage for convenience products, which are often purchased precisely because of their
familiarity. This dominant market position is generally not for the market as a whole, but in specific
segments or submarkets. What establishes the value of a particular alternative is the fact that it is
the default option for customers in its target market. This is achieved by brands with clear
positioning. The other key commercial assets in this arena are privileged access to customers
through commercial networks and distributors that give visibility to the offering.
Precisely because customer intimacy is the key value discipline in the convenience arena, on this
terrain, companies compete with their marketing and sales capabilities, which they must deploy
to identify, develop, market and sustain the differentiating elements of their value proposition.
Likewise, companies with better sales teams are likely to gain better access to customers.
Premium
In the premium arena, competition is mainly based on product leadership. Therefore, the most
important commercial assets are those that make it possible to have a highly differentiated
offering supported by development capabilities, unique brands and other elements that are
difficult to copy and focus on product quality. Given that different segments may have their own
ideas about what constitutes “high quality,” it is also essential to understand their peculiarities
so that the offering can be adapted accordingly.
Product and brand development capabilities are key to generate value propositions that
can break free of the comparisons associated with value equations and operate in the premium
arena.
7 See Jorge González, “Supply-Side Analysis: The Value Proposition and Evaluation of Competitors – MN-411-E” (IESE Academic
Material), IESE Publishing, 2021.

Value
Finally, the value arena is where companies compete with an aggregate of all the others.
Operational efficiency is important, but you do not have to be the cheapest. Quality matters,
but you do not have to be the best. Sometimes it is enough to be a bit cheaper. Companies
competing in this domain say they understand their customers, even though they have been
unable to develop a truly differentiated offering for any of them. In this arena, everything has
an influence. As a result, market positions are more fluid. Once again, marketing assets and
capabilities are very important because the status quo of the market has a big effect. Each
competitor contends with others that occupy similar positions, and competition is based on
product, pricing and marketing capabilities.
Threats to Sustainability: Considerations on Changes in Competitors and

Channels

To conclude this section on the sustainability of market positions, we will consider how disruptions
related to competitors and channels can upend a market. Changes in these elements have a
particular impact in two ways: by redefining the value equation and by redistributing value.
Competitors: Disruption—Redefining Value Equations

In dynamic markets, there are times when a competitor comes up with an alternative that
redefines the value equations applied by customers. This process is called disruption. An in-
depth discussion of this phenomenon is beyond the scope of this note, in which we will simply
point out the existence of two types of disruption.
First, there are disruptions at the high end of the market. These occur when a competitor
introduces a new, superior alternative that leads existing options to be perceived as inferior.
A clear example of a disruption of this kind is the way that the iPhone 1 forever changed how
we define quality when it comes to cell phones.
Second, there are so-called low-end disruptions.8 This type of disruption occurs when
a competitor launches an alternative of acceptable quality—at a significantly lower price—for a
segment of customers that is not particularly demanding. This option ends up appealing to
a significant number of customers who were not making purchases in the category and who are
drawn to the new alternative because of its price, ease of use, or similar factors. An example of
this is the way low-cost options have changed competition in the airline industry.
Channels: Reintermediation and Disintermediation—Redistribution of Value

Another significant change in market dynamics can be brought about by changes in distribution
channels. The emergence or evolution of certain channels can lead to radical changes in the way
margins in the value chain are distributed between manufacturers and those channels. Two
phenomena have a particularly significant impact on these dynamics: reintermediation and
disintermediation.
8 The concept of “low-end disruption” was introduced and described by C. M. Christensen. See: C. M. Christensen, The
Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business Press, 1997).

Reintermediation can occur in situations where a new channel gains a dominant position relative
to others. Consider how Booking.com or e-commerce companies like Amazon.com have
impacted competitive dynamics—not only between channels, but in terms of their importance
to hotels and manufacturers of all types.
Disintermediation processes, on the other hand, occur in markets when a manufacturer
undertakes a process of integration to reach the end consumer directly. Companies like IKEA
and Inditex, for example, have redefined the furniture and fashion sectors respectively with their
integrated models.
Disruption processes such as disintermediation or reintermediation (particularly those at the
low end of the market) tend to take a quite long time to play out—years, in fact. Decisions
related to these processes are therefore strategic, and there will undoubtedly be a tension
between their impact in the short and long term. A competitor or low-priced channel may have
little impact on an established company until, after a few years, that company discovers that
customers no longer value its more expensive offering, or that they no longer shop in the

channels where it once had a dominant position.
Final Conclusions on Market Selection

So far, we have considered the criteria for selecting a target customer and discussed how to
select a market position and the factors that contribute to making such a position sustainable.
This note concludes with a series of reflections on why the selection of a target customer is often
left somewhat undefined and the dangers this poses when it comes to managing competitive
positioning.
Selecting A Target Customer: The Dilemma of Breadth Versus Focus

Selecting a target customer involves various uncertainties that can make it difficult to clearly
define target segments. First, companies usually have different customers. Moreover, even if it
is feasible to have more customers of a single type, the reality is that they all add up. So why be
so selective? The fact is, having a well-defined target customer to orient the setting of priorities
does not prevent anyone from buying our product or service. Neither does it mean that we
cannot seize worthwhile opportunities.
Second, it is relatively easy to find reasons why customers of different types should be very
interested in our offering. Entrepreneurs are generally optimistic, and a certain narcissistic
tendency is part of human nature. In other words, we are susceptible to looking at ourselves and
being captivated by our own beauty. The combination of these two factors has several
implications. First, companies often do not really know their customers well because they think
that what consumers need is what they have already developed. Second, firms fail to appreciate
what their competitors are doing really well. Consequently, there is a tendency to work on the
basis of a distorted view of the market and pursue market segments based on customer needs
and competitive advantages that exist only in the realm of the imagination. As they say, wishing
is not a strategy. Wishing fervently for something is not enough to ensure success.

The combination of these factors may lead us to want to broaden the way we define our target
market. Determining who constitutes that market is not always straightforward. The best way
to identify our target market is not to analyze buyers, but to ask, as Professor Nirmalya Kumar
suggested in one of his books: If your company disappeared, would anyone miss it?
Defining Positioning: The Challenge of Adaptation

In relation to the definition and sustainability of positioning, the final point we need to consider
is how to adapt to changes in the market by adapting the offering and our positioning in a timely
manner. Problems in defining a course of action can arise when we overreact or, conversely,
when we underreact.9
The first source of problems is that a company may overreact when it analyzes new consumer
trends or sees the merit of some of the things its competitors are doing. We overreact when we
blindly copy what competitors are doing or follow trends without fully assessing whether they

are a good fit with our brand positioning or our company’s identity. Doing what everyone else is
doing often leads to the loss of uniqueness and differentiation: we fall into the scrum. And as
rugby fans know very well, when you’re in the scrum, it’s all about weight.
Problems can also arise when, out of inertia, we do too little. It is worth noting that inertia is a
word that comes from Latin, meaning laziness. Sometimes, a company can be lazy and fail to
keep up with important changes in the market. The immobility of those who are unaware of new
developments can be as dangerous as the tendency to overreact without due consideration. In

other cases, when things are going well, we may grow complacent and think that the markets
where we are well positioned belong to us—end of story. We forget that, just as our company
is looking for new market opportunities, competitors are maneuvering to enter our market. We
also run the risk of becoming bored with our traditional markets; that is, of devoting too much
attention to the new and forgetting that to remain competitive in the markets in which we are
already present we must make an ongoing effort and continue to do a good job.
Market selection—identifying a target customer and positioning—is the most strategic of all
commercial decisions. The choice we make plays a determining role, orienting all other
operational decisions; namely, the design of the offering and the go-to-market strategy.
9 The ideas presented on this point were shaped by conversations with Professor José Antonio Segarra (1958–2019), who,
in his teachings, was able to forcefully convey the importance of consistency in business approaches, doing the job right,
and recognizing the value of what makes us different. May these lines serve as a grateful remembrance of his teachings
and example.

Exhibit 1
Templates for Developing a Positioning Statement
Business-to-Consumer Markets (B2C)

For ___________________________ , ____________________
(Target customer) (Your brand/product)
is the best option in __________________________________ ,
(Frame of reference/category)
because it has/delivers ________________________________ ,

(Point of difference)
which enables customers to ________________________________ ,

(Benefit for target customers)
because __________________________ .
(Reason to believe)
Industrial Markets (B2B)

For ___________________________ ,
(Target customer)
who are not satisfied with ________________________________

(Current market alternative)
our product is the ________________________________

(Frame of reference/category)
that delivers _____________________________________

(Compelling reason to buy)
because we’ve developed _______________________________

(Key aspects of the offering)
And we offer the complete product they’re looking for.
Notes:
B2B positioning statements are formulated in more competitive terms since they are made in
opposition to a defined market alternative. B2C positioning statements focus on the unique
selling proposition, stressing the point of difference and the key benefit that the target customer
is seeking.
Source: Geoffrey Moore, Crossing the Chasm: Marketing and Selling Technology Projects (HarperCollins: New York, 2009).

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MN-412-E

Market Selection: Target Customers and Positioning

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

position in the market.

Why Select a Market If It Means Saying No?

Last edited: 8/6/21

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Criteria for Selecting a Target Customer

Size and Growth

2 IESE Business School–University of Navarra

Why? A Truly Compelling Reason To Buy2

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Why Now? Access to Customers Who Are Not Budget-Constrained or Locked

IESE Business School–University of Navarra 3

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How To Write a Positioning Statement

4 IESE Business School–University of Navarra

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Fit With the Company: Consistent and Ownable

IESE Business School–University of Navarra 5

Unique in Relation to Competitors: Differentiated and Sustainable

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the commercial environment.

Ways to Compete: The Three Value Disciplines

6 IESE Business School–University of Navarra

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Commercial Assets and Capabilities for Product Leadership

Commercial Assets and Capabilities for Achieving Customer Intimacy

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Sustainability of Positioning in Different Competitive Arenas

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Material), IESE Publishing, 2021.

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Threats to Sustainability: Considerations on Changes in Competitors and

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Competitors: Disruption—Redefining Value Equations

Channels: Reintermediation and Disintermediation—Redistribution of Value

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Final Conclusions on Market Selection

Selecting A Target Customer: The Dilemma of Breadth Versus Focus

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Defining Positioning: The Challenge of Adaptation

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developments can be as dangerous as the tendency to overreact without due consideration. In

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Business-to-Consumer Markets (B2C)

is the best option in __________________________________ ,

because it has/delivers ________________________________ ,

which enables customers to ________________________________ ,

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Industrial Markets (B2B)

who are not satisfied with ________________________________

our product is the ________________________________

that delivers _____________________________________

because we’ve developed _______________________________

And we offer the complete product they’re looking for.

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