Target Marketing Positioning for Competitive Advantage

STEPS IN SEGMENTING, TARGETING, POSITIONING

Target Marketing 

• Evaluating Market Segments
• Segment size and growth
• Segment structural attractiveness
• Level of competition
• Substitute products
• Power of buyers
• Powerful suppliers
• Company objectives and resources

Target Marketing: Selecting Target Market Segments

TARGET MARKETING

Target Marketing: Selecting Target Market Segments

Undifferentiated marketing - targets the whole market with one offer.

• Mass marketing
• Focuses on common needs rather than what’s different

Differentiated marketing - targets several different market segments and designs separate offers for each.

• Goal is to achieve higher sales and stronger position
• More expensive than undifferentiated marketing

Concentrated marketing - targets a large share of a small market

• Limited company resources
• Knowledge of the market
• More effective and efficient

Micromarketing - the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

• Local marketing
• Individual marketing

Differentiation and Positioning

Identifying a set of possible competitive advantages to build a position
Choosing the right competitive advantages
Selecting an overall positioning strategy

Competitive advantage is the advantage over competitors gained by offering greater value either through lower prices or by providing more benefits that justify higher prices.

Possible Differentiation and Competitive Advantages

Overall positioning strategy (Value proposition)

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