TARGETING

Targeting is
selecting which
segment(s) to
serve.
TARGETING
STRATEGIES
 TARGETING STRATEGIES
The marketer can target the segment
either through standardisation,
differentiation, or focused strategies.
Based on the identification of the target
market and the values it seeks in the
brand, the positioning platform & strategy
can be worked out.
1.STANDARDISATION
2. DIFFERENTIATION
3. FOCUS
 TARGETING STRATEGIES
1.STANDARDISATION:
In this strategy, the firm offers the same product
to different market segments.
It uses the same communication, pricing, &
distribution strategies.
The classical example is of soft drinks firms like
Coke & Pepsi, who retain the same flavour,
advertising, & packaging across segments in
different geographical areas.
The obvious advantage is the economies of scale
which a firm gets in mass production & marketing.
 TARGETING STRATEGIES
1.STANDARDISATION:
Standardised products for the world
market -customer needs are getting
homogenised globally, due to
developments in transportation &
communication.
Global standardization is a marketing approach that
uses standard marketing strategies to promote
products internationally. Companies and businesses
that sell their products and services to international
audiences adopt global standardization.
 TARGETING STRATEGIES
2. DIFFERENTIATION: This is just the opposite
of the above mentioned strategy.
Here, the firm differentiates its products, to
suit different segment needs and
expectations.
Typically, one has the example of an airlines
that differentiates its products into three
classes-first class, business class, and
economy class.
Each of these classes is targeted at a specific
segment, whose needs are different from the
other.
 TARGETING STRATEGIES
3.Focus: This is a combination of
standardisation & differentiation.
Here the core strategy remains the
same but differentiation is made to
take into account specific customer
group their requirements.
For example, the Hundae i10 or Alto
K10 has some basic features & offers
specific benefits to its buyers.
 TARGETING STRATEGIES
3.Focus:
However, a buyer who is looking for
more features like power window
and music systems can get the
same at an additional price.
In this way, Maruti is able to focus
its entire strategy on both the
economy & premium segments.
 TARGETING STRATEGIES
3.Focus:
This strategy helps the firm enjoy the
economies of scale as well as higher
market penetration, and consequently
a higher market share.
Therefore, the marketer has to choose
the appropriate strategy in order to
achieve higher market penetration in
each of his market segments.
GENERIC STRATEGIES - MICHAEL PORTER (1980)
1. Cost Leadership.
 The low cost leader in any market gains
competitive advantage from being able to
many to produce at the lowest cost.
 Factories are built and maintained, labor
is recruited and trained to deliver the
lowest possible costs of production. 'cost
advantage' is the focus.
 Costs are shaved off every element of the
value chain.
DIFFERENTIATION
 DIFFERENTIATION
Positioning: Gaining
competitive advantage
through
differentiation is the
key to survival in
today's turbulent times.
 DIFFERENTIATION
Differentiation could be along any or all
of the following lines.
(a) Product
(b) Service
(c) Channel
(d) Price
(e) People
 DIFFERENTIATION
a) Product: Differentiation on account of product
is indeed the most basic and commonly
resorted approach to positioning.
This differentiation is generally based on features,
form, or benefits.
For example, Frooti was positioned differently
from other fruit juices on the basis of its
tetrapack, a feature that nobody offered in
1986-87.
LG positioned its refrigerator on the basis of
size, colours, & benefit (frost free refrigeration).
 DIFFERENTIATION
(b) SERVICE: However, in a world
characterised by standardised
technologies and products,
product based differentiation does
not last long.
A more defendable differentiation is
created through service.
 DIFFERENTIATION
(b) SERVICE:
Here the credible promises are
built around speed,
convenience, zero down time,
and ready-to-use products
without having to wait for the
company staff to install the
product.
 DIFFERENTIATION
(b) SERVICE:
Domino's Pizza has taken the service route
to position its pizzas in the Indian market. It
guarantees delivery at the customer's end
within 30 minutes of receiving the order.
Likewise, Maruti uses the toll free number to
deliver service to its customers at all times
and ICICI Bank has made banking a
convenience product through its small
banking hubs & ATM network strategy.
 DIFFERENTIATION
(c) Channel: Competitive advantage
and brand position also gets
strengthened through the channel
differentiation strategy.
In this strategy firms take into account
channel image, location, expertise,
and performance.
Premium brands fight for the shelf
space of premium retailers.
 DIFFERENTIATION
(c) Channel: Likewise, Dell
computers, Amway, and the
Tupperware range of products
are positioned on a direct
marketing & multilevel
marketing approach, rather
than through the conventional
distribution model.
 DIFFERENTIATION
(d) PRICE: Price is another
basis for competitive
differentiation.
Nirma,Lifebuoy and many
other regional brands are
positioned on this basis.
 DIFFERENTIATION

(e)People: People
and image are other
bases for
competitive
positioning.
 DIFFERENTIATION
(f) Image
Companies in India are realising
the importance of trained
manpower in the delivery of
brand values and building
brand and corporate images.
Eg. Aditya Birla group