Marketing Management

Fourth European Edition

PART 3
Connecting with Customers

Chapter 10
Seeking and developing target
marketing differentiation
strategies

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 PART 3 Learning objectives

• Segmentation
• Targeting
• Positioning
• The purpose of branding
• How to create and sustain a well-regarded
brand

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 Chapter 10 Learning objectives

1. The different levels of market segmentation

2. How a company divides a market into segments
3. How a company chooses the most attractive
target markets
4. The requirements for effective segmentation
5. How a company creates, develops and
communicates a successful positioning strategy
in the market

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 Chapter 10 Learning objectives
(Continued)
• Why the concept of positioning is so
important to marketing practitioners
• How companies seek to differentiate their
offerings positively in today’s market
conditions
• When a company might need to reposition
its market offerings and the main inherent
risks of such a strategy

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 Levels of market segmentation

• Segment group marketing

• Niche marketing
• Local marketing
• Individual marketing

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 Bases for segmenting consumer
markets

• Geographic segmentation
• Demographic segmentation
• Life stage
• Gender
• Psychographic segmentation
• Behavioural segmentation

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 Bases for segmenting business
markets

• Demographic
• Operating variables
• Purchasing approaches
• Situational factors
• Personal characteristics

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 Market targeting

Effective segmentation criteria

•Segments must be:
– measurable
– substantial
– accessible
– differentiable
– actionable

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 Market targeting (Continued)

• Evaluating and selecting market segments

– Single-segment concentration
– Selective specialisation
– Product (market offer) specialisation
– Market specialisation
– Full market coverage

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 Market targeting (Continued)

• Additional considerations
– Segment-by-segment invasion plans
– Ethical choice of market targets

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 Creating differentiation and
positioning strategies

• Positioning
– Competitive frame of reference
– Points-of-parity
– Points-of-difference

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 Creating differentiation and
positioning strategies (Continued)

• Establishing category membership

– Competitive frame of reference
– Points-of-parity (POPs)
– Points-of-difference (PODs)

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 Creating differentiation and
positioning strategies (Continued)

• Establishing category membership

– Straddle positioning
– Communicating category membership

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 Creating differentiation and
positioning strategies (Continued)

• Choosing POPs and PODs

– Deciding brand anchor level
– Judging POD desirability and deliverability
• Creating POPs and PODs
– Problem of negative correlation of attributes
and benefits

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 Perceptual or positioning mapping

• What can positioning analysis do for a

company’s business?
• Positioning maps
• Developing a positioning strategy

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 Repositioning

• Repositioning (reasons for)

– Competitive threat
– Change in consumer preferences
– New market categories appear
– Initial launch error
– To change perception of the firm

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 Developing and communicating a
differentiation strategy

• Cost leadership
• Distinctive superior quality
• Cost leadership and differentiation

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 Differentiation strategies

• Personal differentiation
• Channel differentiation
• Image differentiation

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 Purpose of positioning

• Benefits customers
• Benefits suppliers
• An effective and efficient strategy

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