The goal is to achieve higher sales and stronger position More expensive than undifferentiated marketing Concentrated (Niche) Marketing A market coverage strategy in which a firm goes after a large share of one or a few segments or niches Limited company resources; Knowledge of the market; More effective and efficient Micromarketing Tailoring products and marketing programs to the need and wants of specific individuals and local customer segments Local Marketing Tailoring brands and promotions to the need and wants of local customer segments - cities, neighborhoods and even specific stores Individual Marketing Tailoring products and marketing programs to the needs and preferences of individual customers Also called one-to-one marketing, customized marketing and markets-of-one marketing Factors to be considered when choosing a targeting strategy: Company resources M a r k e ti n g 4 | P a g e
Product variability Product life-cycle stage Market variability Competitor's marketing strategy Positioning Arranging for a market offering to occupy a clear , distinctive and desirable place relative to competing products in the minds of target consumers. Product Position Way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products It is often used positioning maps: maps that show consumer perception of marketer's brands versus competing products on important buying dimensions (price always in one axle). Steps in Choosing a Positioning Strategy 1. Identify a set of possible competitive advantages to build a position 2. Choosing the right competitive advantages 3. Selecting an overall positioning strategy 4. Communicating and delivering the chosen position to the market 1) Identify a set of possible competitive advantages to build a position Competitive Advantages An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices Types of differentiation Product: Consistency, durability, reliability, reparability, etc Services: Speed, convenience, careful delivery, etc Image: Convey benefits and positioning People: Hiring, training better people than competitors Channels 2) Choosing the right competitive advantages M a r k e ti n g 5 | P a g e
3) Selecting an overall positioning strategy
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- Fall '18
- Marketing, Effective Segmentation