M.B.A.TARGETINGANDPOSITIONINGSEGMENTATIONChoosingsegments:ValidityMeasurable–canwepredictthesizeofthemarketAccessible–canwedeliverourofferingandcanwedesignaspecificmarketingmixforeachsegmentSustainable–willitbehereforsometimeAttractiveness:dowefeelwecanprofitTargetmarketingTargetmarketoptions•Undifferentiated–orcalledmassmarketing•Differentiated•Concentrated–orcallednichemarketing•Customised–tailoredtoindividualcustomersPositioningPositioning&perceptualmaps•Howthecustomerpositionsourproductsandservicesin“theirmind”againstthecompetitionsoffering.•Useofperceptualmaps.•Useofpositioningstrategies.•Useofstraplinesandtaglines.Positioning•NOTthephysicalplacementofaproduct•Fromsegmentationandtargetingexercise•“inthemind”oftheconsumer(notthecompanyview)relativetothecompetition•Mayusepositioningstrategies•Informedbyperceptualmaps;positioning/re-positioning,newproductdevelopment.•CreateapositioningstatementPromotionobjectivesandpositioning–aperceptualmapPositioningRememberitisthecustomerwhopositionsthebrand/productorserviceandNOTthethecompany.•Functionalapproach-Arationalapproach-Objective/actual–useoffacts•Expressiveapproach-Animagebasedapproach-Subjective/personal–useofemotionspositioningstatements1.Professionalmoneymanagementservicesfordiscerninginvestors.2.Eleganthomefurnishingsataffordableprices.3.Lowcostvitaminsforactiveseniors.4.Equitystrategiesforlowriskinvestors.5.Oakfurnitureforeveryroominyourhouse.6.Vitamindrinksforweekendathletes…..thesestatementscanofteneasilyturnintostraplines.POSITIONINGSTRATEGIES•Attribute,featureorbenefit–Ronseal•Priceandquality–Marks&Spencersfood•Useorapplication–Kellogs•Productuser–Lucozade•Productclassdisassociation–“Ican’tbelieve…”•Competitor–Avis,Alliance&Leicester•Culturalsymbol–Harrods?!!Positioning/re-positioningRE-POSITIONINGSTRATEGIES•Changeinbuyerattitudes•Changeinbuyerpreferences•Currentpositioninappropriate•Newmarketdevelopments&opportunities•Merger&acquisitionactivityTUTORIAL1.Whatoptionsexistfororganisationswhentargetmarketingandhowdotheychoosewhichsegmentstogofor?2.DothepositioningexercisefortheUSbreakfastcerealsmarkets.