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Quarter 3 Week 8-9

Objectives

Define Target Marketing and its steps (Market Segmentation, Targeting, and Positioning).
Explain the importance of target marketing in creating effective marketing strategies.
Differentiate the three steps (Market Segmentation, Market Targeting, and Market Positioning).
Apply the concept of target marketing by identifying target markets and positioning for a specific product.

MARKET SEGMENTATION, TARGETING, AND POSITIONING

TARGET MARKET

Is a group of people whom a company intends to sell its products and services.

This group of consumers is the primary recipient of the marketing efforts of the company

Identifying the target market helps the company maximize its marketing resources and efforts to attract and retain a loyal group of customers.

STAGES IN TARGET MARKETING:

MARKET SEGMENTATION

It refers to the process of dividing consumer markets into smaller groups consumers. Marketers aim to focus on the specific needs of these consumer groups and make sure that their products or brand respond to these needs.

2. MARKET TARGETING

Companies and firms select their target markets based on several factors, including the resources of the company or firm, the strategies of competitors, and the profitability expected from this specific market.

Once a company has identified possible target segments, the company or firm further examines its potential as an actual target market.

TYPES OF MARKET TARGETING STRATEGIES

2.1 Undifferentiated marketing or mass marketing- most companies or firms that perform marketing strategies take note of the segments in consumer markets. These companies perform undifferentiated marketing where they tend to sell a wide variety of products or products with high generalized features. (SM)

2.2 Differentiated marketing or segment marketing- companies make sure that their products cater to the needs of particular segments in consumer markets. (CREAMSILK, NESCAFÉ)

3.3 Concentrated marketing or niche marketing – often have highly specific features. Companies or firms tailors its products or services to only one specific segment called niche.

3. MARKET POSITIONING OR PRODUCT POSITIONING

Companies and firms develop ways to promote and position their brands effectively to their selected segments or target markets. Through marketing campaigns, organizations show the uniqueness of their products or brands to consumers.

After a company or firm has identified its actual target market/s, its products or services must now create a favorable impression on the minds of consumers

5 Types of Market Positioning Strategies

Features- based positioning- marketers sell their brands based on their features (3M Sticky note pads)

Use-based positioning- marketers sell their products or services based on their possible uses or the types of circumstances when they can be used. ( Magic Sarap)

User-based positioning- marketers advertise their products based on the type of consumer who will benefit from the product ( Head and Shoulders)

Head -on competitive positioning- used by market challengers or the “number 2” brands in the market. (Surf)

Lifestyle positioning- marketers sell their products or services according to the cultural practices or values that their target market/s subscribe to. ( Coca Cola helps strengthens relationships among people)

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