Market Targeting Session 7 Market Targeting Evaluating Market

Market Targeting Session 7

Market Targeting Evaluating Market Segments Selecting Market Segments Choosing a Market-Coverage Strategy

Evaluating Market Segments 3 Factors that a firm should look into when evaluating different market segments Segment size and growth segment structured attractiveness Company objectives and resources

Selecting Market Segments Undifferentiated Marketing Bifurcated Marketing Differentiated Marketing Concentrated Marketing

Undifferentiated marketing Company ignores market segmentation differences and goes after the entire market with one market offer. Mass distribution and mass advertising serve as the basic tools to create a superior image in consumer mind.

Bifurcated marketing Marketing planning and strategy in these nations can be quite different to hospitality managers who accustomed to many available market segments.

Differentiated marketing A company targets several market segments and designs separate offers for each

Concentrated marketing Specially appealing to companies with limited resources.

Choosing a Market – Coverage Strategy Company resources Degree of product homogeneity Market homogeneity Competitors’ strategies

Positioning Strategies Products can be positioned on specific attributes or against another product class

Choosing and Implementing a Positioning Strategy Identifying a set of possible competitive advantages upon which to build a position 2. Selecting the right competitive advantages 1. 3. Effectively communicating and delivering the chosen position to a carefully selected target market

Product Differentiation Physical Attribute Differentiation Service Differentiation Personnel Differentiation Location Differentiation Image Differentiation

Selecting the Right Competitive Advantages How many differences?

How different is your business? Use selling position (USP) Best quality Best service Lowest price Best value Best location

What to avoid? ? ? Avoid: Underpositioning - failing ever to position the company at all Overpositioning - giving buyers too narrow a picture of the company Confused positioning - leaving buyers with a confused image of a company

Selecting the Right Competitive Advantages Brand differences should meet the following criteria prior to marketing: Important Distinctive Superior Communicable Preemptive Affordable Profitable

Selecting the Right Competitive Advantages Important – the difference delivers a highly valued benefit to target buyers Distinctive – competitors do not offer the difference, or the company can offer it in a more distinctive way Superior – the difference is superior to other ways that customers might obtain the same benefit

Selecting the Right Competitive Advantages (continued…) Communicable – the difference is communicable and visible to buyers Pre-emptive –competitors cannot easily copy the difference Affordable – buyers can afford to pay for the difference Profitable – the company can introduce the difference profitability

Communicating and delivering the chosen position Marketing mix should support the its positioning strategy

Example of positioning To build business superiority – hire service oriented employees, provide training programs, reward employees for providing good service, and develop sales and advertising messages to broadcast its service support.

Positioning Measurement Perceptual mapping is a research tool used to measure a brand’s position

Perceptual Map Positioning map of service level versus price. (From Christopher Lovelock, Services Marketing, Upper Saddle River, NJ: Prentice Hall, 1996, p. 178. )

Role Play Activity Use the previous activity In a group of three, develop a script on how you could effectively market the products and services using the different promotions and sales techniques. Create a scenario and role play the situation.