The market targeting decision identifies the people or organizations in a product market toward which an organization directs its positioning strategy

A)  Targeting Strategies

Targeting and positioning strategies consist of identifying and analyzing the segments, deciding which segments to target and designing and implementing a positioning strategy for each market

B)  Targeting Alternatives

The targeting decision determines how many customer groups the organization will serve.  The organization may select strategies that offer buyers a variety of products.  Market targeting approaches tend to fall into tow major categories -- segment targeting and targeting through differentiation

A) Five Generic Environments that Portray the Range of Industry Structures:

	Emerging: Industries newly formed or re-formed
	Fragmented:  A large number of small firms
	Transitional:  Industries shifting from rapid growth to maturity
	Declining:  An industry that is fading away
	Global:  Firms that compete on a global basis
	Note:  See Exhibit 6-2 for the life cycle (Introduction/Growth/Maturity/Decline) for a typical product.  The stages of the life cycle offer useful insights about the industry environment

	The most pervasive feature of emerging markets is uncertainty about customer acceptance
	Buyer diversity:  The similarity of preferences limits segmentation
	Industry structure:  New enterprises are more likely to enter than large, well established companies
	Capabilities and resources:  A firm will want to offer unique benefits
	Targeting strategy:  More successful firms will engage in less change (See Exhibit 6-3)

C)  Growth Markets

	Segments are likely to be found in growth markets.
	Industry structure:  A visible growth market can attract too many competitors
	Capabilities and resources:  Survival rates are higher for aggressive firms and conservative specialists
	Targeting strategy:  Three possibilities:  extensive market coverage, selective targeting, and very focused targeting
	The objective of the targeting strategy is to match the organizations distinctive capabilities to value opportunities in the product market

D)  Strategies for Mature and Declining Markets 

	Buyer diversity:  The market is not likely to expand or decline rapidly.  However, decline will occur unless actions are taken via product innovation, etc.
	Industry structure:  Intense competition exists with emphasis on cost and service.  Just a few companies dominate the industry
	Capabilities and resources:  Management's objective may be cost reduction, selective targeting, or product differentiation
	Targeting:  Targeting may be altered to reflect changes in priorities.  Positioning may be adjusted to improve customer satisfaction

E)  Global Markets 

	Global reach and standardization:  Global products are differentiated --- but standardized across nations.  The objective is to id market segments that span global markets and to serve customer needs with global positioning strategies
	Local adaptation:  Domestic customers are targeted and positioning strategies are designed to consider the requirements of domestic buyers
	Industry structure:  Range from a single country to regional, to global targeting

Positioning may focus on an entire company, a mix of products, a line of products, or a specific brand.  The positioning concept indicates the desired positioning of product (brand) in the eyes and minds of the targeted buyer. Positioning is intended to deliver the value proposition appropriate for each market..  The positioning strategy includes the product, supporting services, distribution channels, price, and promotion.

A) Selecting the Positioning Concept

The positioning concept indicates the perception or association that management wants buyers to have concerning the company's brand.  It is the general meaning that is understood by customer in terms of its relevance to their needs and preferences.

B)  Positioning Concepts

	Functional concept:  Applies to products that solve consumption related problems
	Symbolic concept:  Relates to buyer's internally generated need for self-enhancement
	Experiential concept:  Position products that provide sensory pleasure
	The positioning decision:  The objective is to find the preferred position of the buyers in each market segment of interest and to compare this preferred position with the actual position of competing brands

 

The positioning strategy places the marketing program components into a coordinated set to actions designed to achieve the positioning objectives

A) Considerations about Targeting/Supporting Activities

The positioning strategy is usually centered on a single brand or a line of related products.  See pages 213-216 for a discussion of Pier 1 Imports' positioning strategy.

	Positioning analysis is concerned with identifying the competitors serving a target market, determining how they are perceived, evaluated and positioned by buyers; and analyzing customer needs and preferences
	Positioning helps customers now the real differences among competing products and shows how the brand is distinguished from its competitors

A) Positioning Effectiveness

Positioning means an overt decision is being made to concentrate only on certain segments.  This is challenging when management decides to target several segments.  The objective is to develop an effective positioning strategy for each segment.