Principles of Marketing

MGT-351
By

Mr. Ghulam Murtaza

Why Need Targeting and Process of Positioning
Target Marketing - Meaning, Basis and its Need

• Target Marketing refers to a concept in marketing which helps the

marketers to divide the market into small units comprising of like
minded people. Such segmentation helps the marketers to design specific
strategies and techniques to promote a product amongst its target market.
A target market refers to a group of individuals who are inclined towards
similar products and respond to similar marketing techniques and
promotional schemes.
 Basis of Target Marketing
• Age
• Gender
• Interests
• Geographic location
• Need
• Occupation
 Why target marketing? (Need of Target
Marketing)
• Organizations can use similar kind of strategies to promote their products
within a target market.
• They can adopt a more focused approach in case of target marketing. They
know their customers well and thus can reach out to their target audience
in the most effective way.
 How to create Target Market

• The organization must first decide who all individuals would fit into a
particular segment. A male and a female can’t be kept in the same
segment. The first and the foremost step is to decide on the target market.
• The next step is to identify need and preference of the target market. It is
essential to find out what the target market expects from the product.
• Once the target market is decided, organizations can decide on the various
strategies helpful to promote their product.
 How to select the Target Market ?
• It is essential for the organizations or marketers to identify the set of people
whom they want to target ?. Marketers must understand the needs and
expectations of the individuals to create its target market.
• The target audience must have similar needs, interests and expectations.
• To select a target market, it is essential for the organizations to study the
following factors:
• Understand the lifestyle of the consumers
• Age group of the individuals
 Conti….
• Income of the consumers
• Spending capacity of the consumers
• Education and Profession of the people
• Gender
• Mentality and thought process of the consumers
• Social Status
• Kind of environment individuals are exposed to
 Product Positioning
• The process of creating an image of a product in the minds of the
consumers is called as positioning. Positioning helps to create first impression
of brands in the minds of target audience. In simpler words positioning helps in
creating a perception of a product or service amongst the consumers.
• Example
• The brand “Bisleri” stands for purity.
• The brand “Ceat Tyre” stands for better grip.
 Process - Steps in Product Positioning
i) Know your target audience well
• It is essential for the marketers to first identify the target audience and
then understand their needs and preferences. Every individual has varied
interests, needs and preferences. No two individuals can think on the same
lines.
• Know what your customers expect out of you.
• The products must fulfill the demands of the individuals.
 ii) Identify the product features
• The marketers themselves must be well aware of the features and benefits
of the products. It is rightly said you can’t sell something unless and until
you yourself are convinced of it.
• A marketer selling Nokia phones should himself also use a Nokia handset
for the customers to believe him.
 iii) Unique selling Propositions
• Every product should have USPs; at least some features which are unique. The
organizations must create USPs of their brands and effectively communicate the
same to the target audience.
• The marketers must themselves know what best their product can do.
• Find out how the products can be useful to the end-users ?
• Why do people use “Anti Dandruff Shampoo?”
• Anti Dandruff Shampoos are meant to get rid of dandruff. This is how the product
is positioned in the minds of the individuals.
 iv) Know your competitors
• A marketer must be aware of the competitor’s offerings. Let the
individuals know how your product is better than the competitors?
• Never underestimate your competitors.
• Let the target audience know how your product is better than others.
• The marketers must always strive hard to have an edge over their
competitors.
 v) Ways to promote brands
• Choose the right theme for the advertisement.
• The advertisement must not confuse people.
• The marketer must highlight the benefits of the products.
 vi) Maintain the position of the brand
• For an effective positioning it is essential for the marketers to continue to live up
to the expectations of the end - users.
• Never compromise on quality.
• Don’t drastically reduce the price of your products.
• A Mercedes car would not be the same if its price is reduced below a certain
level.
• A Rado watch would lose its charm if its price is equal to a Sonata or a Maxima
Watch.
 Difference between Market Segmentation,
Targeting and Positioning
• A market refers to a set up where two or more parties are involved in
transaction of goods and services in exchange of money. The two parties here
are known as sellers and buyers.
• It is the responsibility of the marketers to create awareness of their products amongst
the consumers. It is essential for the individuals to be aware of the brand’s existence.
The USPs of the brands must be communicated well to the end-users.
• An organization can’t afford to have similar strategies for product promotion
amongst all individuals. Not every individual has the same requirement and demand.
 STP
• The marketers thus came with the concept of STP.
• STP stands for:
• S - Segmentation
T - Targeting
P - Positioning
 Segmentation
• The first step in the process of product promotion is Segmentation
• The division of a broad market into small segments comprising of individuals who think on the same lines
and show inclination towards similar products and brands is called Market Segmentation.
• Market Segmentation refers to the process of creation of small groups (segments) within a large market to
bring together consumers who have similar requirements, needs and interests.
• The individuals in a particular segment respond to similar market fluctuations and require identical products.
• In simpler words market segmentation can also be called as Grouping.
• Kids form one segment; males can be part of a similar segment while females form another segment.
Students belong to a particular segment whereas professionals and office goers can be kept in one segment.
 Targeting
• Once the marketer creates different segments within the market, he then devises various
marketing strategies and promotional schemes according to the tastes of the individuals of
particular segment. This process is called targeting. Once market segments are created,
organization then targets them.
• Targeting is the second stage and is done once the markets have been segmented.
• Organizations with the help of various marketing plans and schemes target their products amongst
the various segments.
• Nokia offers handsets for almost all the segments. They understand their target audience well and
each of their handsets fulfils the needs and expectations of the target market.
• Tata Motors launched Tata Nano especially for the lower income group.
 Positioning
• Positioning is the last stage in the Segmentation Targeting Positioning Cycle.
• Once the organization decides on its target market, it strives hard to create an image of its product in
the minds of the consumers. The marketers create a first impression of the product in the minds of
consumers through positioning.
• Positioning helps organizations to create a perception of the products in the minds of target audience.
• Ray Ban and Police Sunglasses cater to the premium segment while Vintage or Fastrack sunglasses
target the middle income group. Ray Ban sunglasses have no takers amongst the lower income group.
• Garnier offers wide range of merchandise for both men and women.
• Each of their brands has been targeted well amongst the specific market segments. (Men, women,
teenagers as well as older generation)