Scribd
Upload
2 views

MKT124 Chapter 4

The document discusses the target marketing process, which includes segmentation, targeting, and positioning, to effectively serve chosen market segments. It emphasizes the importance of understanding customer needs and developing suitable marketing strategies to differentiate products and gain competitive advantage. Additionally, it outlines various positioning strategies that can help businesses establish their market presence and improve brand recognition.

Uploaded by

55bp5qhp6j
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
2 views

MKT124 Chapter 4

The document discusses the target marketing process, which includes segmentation, targeting, and positioning, to effectively serve chosen market segments. It emphasizes the importance of understanding customer needs and developing suitable marketing strategies to differentiate products and gain competitive advantage. Additionally, it outlines various positioning strategies that can help businesses establish their market presence and improve brand recognition.

Uploaded by

55bp5qhp6j
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 13

Advertising and Marketing

Communication Diploma

Introduction to Marketing
Chapter 4: Positioning
The target marketing process

The target marketing process provides the basis for the selection of target market
– a chosen segment of the market that an organization wishes to serve. It consists
of the three-step process of segmentation, targeting and positioning.
Marketers utilize this process due to the prevalence of mature markets, greater
diversity in customer needs, and its ability to provide focus for an organization's
marketing strategy and resource allocation among markets and products.

Authored by: Baines and Fill, 201


The target marketing process

Positioning
Segmentation Develop positioning
Targeting
Identify bases that will create
Evaluate segments
dividing a market competitive
and decide which to
into smaller advantage in the
serve best
segments minds of the chosen
market segment

Authored by: Solomon et al. (2013


The benefits of target marketing process

• Understanding Differentiation • Suitable •


customers’ marketing mix
needs This process allows
The target marketing
marketers to
process provides a basis for
understanding customers’ understand
needs by grouping
By breaking a customers’
customers with similar market into requirements of a
characteristics together and different target market and
for the selection of target design a suitable
market. Segmentation segments allows marketing mix
allows marketers more marketers to that meets their
precisely to define customer
needs and expectations. decide which needs. Hence
Marketers improve their segment is more providing effective
understanding of how, why, and efficient
and what influences
appropriate to matching of
customer buying. Being in differentiate its organisational
touch with customers offerings from resources to targeted
increases their
.the competitors segments and
responsiveness to changing
needs and allowing better promising greater
.marketing programs return on marketing
.investment
Authored by: Solomon et al.
(2013)
?What is Positioning

The term product (brand) positioning refers to the place a product occupies in a given
market. This depends on market structure, competitive position of the firm, and the
concepts of substitution and competition among products. Product Image suggests a
new perspective on product positioning, like consumers' perceptions concerning the
place a product occupies in a given market.

Authored by: The people’s


University
?What is Positioning

The word positioning encompasses most of the common meaning of the word
position, position as a place (what place does the product occupy in its market?), a
rank (how does the product fare against its competitors in various evaluative
dimensions?) and a mental attitude (what are consumer attitudes the cognitive,
effective, and action tendencies) toward the given product. Hence, product
positioning should be assessed by measuring consumers' or organizational buyers
perceptions and preference for the product in relation to its competitors (both branded
and generic).

Authored by: The people’s


University
? What is Positioning grid

A positioning grid is a perceptual map on which important aspects of a category of


products
can be drawn and individual brands within the category can be understood in relation to
each other. Positioning grids can be used for every product category and you can use them
to create a competitive view based on the attributes that you determine are most relevant
to
your consumers. The axes of positioning grids typically use opposites along a spectrum of
choices that consumers use to weigh up their attitude or purchase intention towards a
brand. Authored by: Gillian Rightford
Attribute A

Some examples of attributes that


? What is Positioning grid could be plotted on
a grid:
Brand
Brand
Traditional Exciting
Cheap Expensive
Low risk High risk
Old fashioned New
Attribute2 Attribute1 Sporty Luxurious

Brand
Brand

Attribute A
? What is Positioning strategy

A positioning strategy is a strategic marketing plan that


helps you determine where your business stands in the
market and how it should be positioned to attract more
customers.
A poorly positioned product will never reach its full
potential no matter how well it is marketed, while an
excellent positioning strategy can be all that stands
between failure and profitability.

Authored by: Paul Writer, 2021


? What is Positioning strategy

A successful positioning strategy can help companies become an authority in their field,
distinguish themselves from competitors for better brand recognition, or even create new
markets by identifying unmet needs among consumers. More specifically, businesses may
use this type of approach when they are going up against established players who have
been around longer as well as those with the more incredible distribution channel.

Authored by: Paul Writer, 2021


? What is Positioning strategy

There are four main types of positioning strategies: competitive positioning, product
positioning, situational positioning, and perceptual positioning.

1 Competitive positioning involves comparing your product or service with that of the
competitors.

2 Product positioning includes creating benefits for customers by aligning those features with
specific needs.

3 Situational positioning includes positioning your product as a solution to the specific needs of
targeted customers.

4 Perceptual positioning includes changing how people feel about their situation by altering
perceptions.
Quick Review

In your opinion, an excellent positioning strategy can be


all that stands between failure and profitability for an
organization?

a) Yes
b) No

You might also like