Targeting and positioning
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This document discusses targeting and positioning strategies. It outlines four targeting strategies: standardization, differentiation, focus, and customization. It then discusses the key elements of positioning, including target market, differential advantage, and communicating that advantage. There are three types of positioning: functional, symbolic, and experiential. Positioning can be done to highlight features, benefits, specific uses, segments, or compete with other products. The document provides examples of how Mahindra, Tata Motors, and Maruti have defined their value propositions for different target customers.
Targeting and positioning
- 2. TARGETING Target market selection is the choice of which and how many market segments the company will compete in.
- 3. There are 4 generic targeting strategies • Standardisation Firm offers the same product to different market segments. Eg: soft drinks like coke and Pepsi • Differentiation The firm differentiates its products to suit different segment needs and expectation. Eg: airlines
- 4. • Focus Combination of standardisation and differentiation, where the core strategy remains the same. but differentiation is made to take into account specific customer group requirements. Eg: Maruti 800 and esteem • Customized Associated with close relationships between the supplier and customer because the high value of an order justifies large marketing and sales efforts being focused on each buyer. Eg: Designing and stitching clothes
- 5. POSITIONING • An act of communicating company’s offer so that it occupies a distinct and valued place in the customer’s mind.
- 6. Elements of positioning • Target market Where does company want to compete ? • Differential advantage How does the company want to compete? • Communicating the differential advantage to customers
- 7. Types of Positioning • Functional Positioning It is aimed at providing solutions and advantages to the customers. • Symbolic Positioning It is aimed at improving the image of the product, providing meaning and a sense of belongingness. • Experiential positioning It offers sensory and cognitive stimulation.
- 8. Positioning can be done with many objectives Some of these are as follows : • To highlight the product features • To emphasize the benefits • To focus on specific use • Aimed at a specific category / segment of user • To compete with another product
- 9. Table showing how three companies have defined their value proposition given target customers, benefits and prices. Brand, Product and company Target customers Benefits Value proposition SCORPIO,SUV, Mahindra & Mahindra Lifestyle oriented consumers Ruggedness, luxury, and comfort SUV , luxury & comfort Indica, car, Tata Motors Small car consumers who want more spacious vehicle Spaciousness A spacious, small car without extra costs Maruti 800 Mass market Fuel efficiency Value for money
- 10. Reference • Marketing management, a South Asian perspective- Pearson Authors: Philip kotler, Kevin lane Keller, Abraham Koshy, Mithileshwar Jha • Marketing Management – Rajan Saxena