Targeting and Positioning (4 Types of Targeting Strategies…
Targeting and Positioning
A target market is ‘a particular portion of the total population which is identified (i.e. targeted) by the marketer or retailer to be the most likely to purchase its products or services’ (American Marketing Association [AMA] Dictionary, 2016).
An organisation’s marketing research and analyses of the marketing environment determines which segment to target. Considering ...
customers’ needs and wants – of different segments
competitors – to help identify a suitable competitive advantage in relation to different segments
the organisation’s competencies and resources – to assess strategic windows (the fit with key market requirements).
4 Types of Targeting Strategies
Undifferentiated = Making the same offer to the whole market (e.g. BBC News)
Differentiated = Making different offers to separate market segments (e.g. Clarks Shoes)
Concentrated = Focusing on one or a few market segments (niche) (e.g. racehorse studs)
Customised = One-to-one marketing, often in a combination with a segment strategy (e.g. Mini cars, which allow customers to customise the car’s appearance)
Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
the standard positioning formula :
For ... (target consumers)
Brand X is ... (competitive set and subjective category) Which gives the most ... (promise or consumer benefit) Because of ... (reason to believe)
(Kapferer, 2012, p. 155)
people who are seeking the ideal gift to give to friends and business partners at home and abroad
Chia Te is
the best baked, fresh tasting and delicious brand (subjective category) of pastry and delicacies (competitive set)
unique flavour and high quality
Chia Te is popular among tourists and locals alike and has won many awards.
The ‘reason to believe’ is the evidence to support the ‘promise or consumer
Perceptual positioning maps examine customers’ perceptions of their offering against those of competitors (Kotler and Armstrong, 2016)
Successful positioning depends on four factors (Jobber and Ellis- Chadwick, 2013)
Consistency – The positioning statement should be enduring so it becomes associated with an organisation’s offering.
Credibility – The positioning should be believable.
Clarity – The positioning statement should be clear and identify the targeted segment and the differential advantage offered.
Competitiveness – The positioning should include a differential advantage over competitors.
Summary: In deciding which customers to serve, organisations need to choose appropriate segmentation variables to focus in on specific customers from the range of customer segments in a market. Marketing research and analyses help to identify certain segments to target. Finally, marketers need to adopt a customer perspective in formulating the positioning for an offering and to differentiate it successfully in customer’s minds from competitors.