Targeting

Selecting Target Markets

Marketing Management – Module 3 12/08/202

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Some…..Targets…..
 Himalayan
 Anne French
 Havell’s
 Fevicol
 White Adhesive - Binding
 M Seal – Filling
 Feviquik - Trasparent
 Asian Paints
 Idea Mobile
 Naukri.com

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Targeting (page no. 299 kotler)

M2 M1 M2 M3

M1 M3
P1 P1

P2 P2

P3 P3

Single Segment/ Concentration Selective Specialization

John Deere – Construction equipment M& M – Tractors; Time Share;

Automobiles

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 Targeting (page no. 299 kotler)
M1 M2 M3 M1 M2 M3 M1 M2 M3

P1

P2

P3

Market Specialization Product Specialization Full Coverage

Equipment for Only Glass equipment for

University laboratories Laboratories 1. Undifferentiated Market
2. Differentiated Market

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 Differentiation

Strategy and types

Marketing Management – Module 3 12/08/202

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Differentiation
 Differentiation allows the firm to get a price premium
based on the extra value perceived by and delivered to
customers
 Better (performance), Newer (New solution/product), Faster
(reducing time) or cheaper (reducing cost/price)

 Three strategies that lead to differentiation (COP)

 Operational Excellence – Supermarkets – cutting supply chain
 Customer Intimacy – Customized responses
 Product Leadership – Nike, Apple, Sony

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Tools for Competitive Differentiation PAGE
NO. 317 (VSFS)
Competitive Advantage

Many
Fragmented Specialization
Number of (Restaurant) (Specialized
approaches machinery)
to achieve
advantage
Few
Stalemate Volume
(Steel) (constr. Equip.)

Small Large

Size of the Advantage

Strategic Leverage
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Differentiation page no 319
 Product Differentiation (PCDRRFSD)
 Features – characteristics that supplement basic functioning
 Performance – levels at which primary characteristics function
 Conformance – product design & operating characteristics vs.
standards.
 Durability – product’s expected operating life
 Reliability – probability that the product will not malfunction or
fail within a certain period of time
 Reparability – Fixing malfunction
 Style – How well the product looks and feels
 Design – Integrating factor

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Differentiation
 Services Differentiation (DICCRM – follow the sequence)
 Delivery – Fedex
 Installation – Durables, Tata Sky, DishTV
 Customer Training – ERP, Software
 Consulting Services – Insurance, Investment
 Repair – Aquagaurd, Air Conditioners
 Miscellaneous - AMCs

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Differentiation
 Personnel Differentiation (Airline, Banking, Restaurants)
 Competence (4C2R)
 Courtesy
 Credibility
 Reliability
 Responsiveness
 Communication
 Image Differentiation (SAME)
 Symbol – logo, type, object
 Media – Advertisements, Billboards (AMUL)
 Atmosphere – McDonalds, PVR Cinemas, ADLabs
 Events – Only Vimal (Reliance and Asiad?)
 Identity – Logos, brand name, symbols, atmospheres etc
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Differentiation costs
 Trade Offs (IPMAP)
 Product modification costs
 Manufacturing Costs
 Administrative costs
 Inventory costs
 Promotion costs

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Thank you

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