Chapter Four: Market Segmentation, targeting and positioning

4.1. Market segmentation

4.2. Targeting

4.3. Positioning

4.1 INTRODUCTION

A company that decides to operate in a broad market recognizes that it normally cannot serve all
customers in that market. The customers are too numerous and diverse in their buying
requirements. Instead of competing everywhere, the company needs to identify the market
segments that it can serve most effectively.

To choose its markets and serve them well, many companies are embracing target market. In
target marketing, sellers distinguish major market segments, target one or more of those
segments, and develop products and marketing programs tailored to each segment. Instead of
scattering their marketing effort they can focus on the buyers whom they have the greatest
chance of satisfying. Therefore, in order to achieve their objective marketers are required to take
three major steps (see figure 4-1)

A. Market segmentation:- Dividing a market in to distinct groups of buyers with different

needs, characteristics or behavior who might require separate products or marketing mixes.
B. Market targeting:- is the process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter.
C. Market positioning:- is formulating competitive positioning for a product and a detailed
marketing mix.

Market Segmentation Market Targeting Market Positioning

1. Identify segmentation 5. Identify possible positioning

variables and segment the concepts for each target segment.
market. 3. Evaluate the attractiveness of
each segment.
6. Select, develop and communicate
2. Develop profits of the chosen positioning concept.
resulting segments. 4. Select the target segment(s)
Figure 4-1Steps in market segmentation, Targeting and positioning
4.2. MARKET SEGMENTATION
Markets consist of buyers, and buyers differ in one or more ways; in their wants, resources,
locations, buying attitudes and buying practices. Through market segmentation companies
divide large heterogeneous markets into smaller segments that can be reached more
efficiently with products and services that match their unique needs.
3.2.1. Meaning of Market Segmentation
Segmentation is a consumer oriented marketing strategy. It is a process of dividing the market
on the basis of interest, need and motive of the consumer. Market segmentation simply means
dividing market or grouping of consumers. It refers to grouping of consumers according to
such characteristics as income, age, race, education, sex, geographic location etc. Therefore
market segmentation is the strategy that subdivides the target market into sub-groups of
consumers with distinct and homogenous characteristics with a view to develop and follow a
distinct and differentiated marketing programmes for each sub-group in order to enhance
satisfaction to consumers and profit to the marketer.
According to Philip Kotler, “Market segmentation is the sub-dividing of a market into
homogenous sub-sects of consumers where any sub-sects may conceivably be selected as a
market target to be reached, with a distinct marketing mix.”
4.2.2. Levels of Market Segmentation
Market segmentation has four major steps. Which can be depicted as follows? (see figure 4.2).

Mass Segment Niche Micro

Marketing Marketing
Marketing Marketing

No segmentation complete segmentation

Figure 4.2 Steps in the market segmentation
i. Mass Marketing(Undifferentiated Marketing)
In mass marketing the seller engages in the mass production, mass distribution and mass
promotion of one product for all buyers. The traditional argument for mass marketing is that it
creates the largest potential market, which leads to the lowest costs, which in turn can
translate in to either lower prices or higher margins. Moreover, mass marketers often have
trouble competing with more-focused firms that do a better job of satisfying the needs of specific
segments and niches.
ii. Segment Marketing(differentiated marketing)
It recognizes that buyers differ in their needs, perceptions buying behaviors, purchasing power,
geographical location, buying habits and attitudes. Therefore, the company tries to isolate broad
segments that make up a market and adapts its offers to more closely match the needs of one or
more segments.
Segmentation is a midpoint between mass marketing and individual marketing. The consumers
belonging to a segment are assumed to be quite similar in their wants and needs. Yet they are not
identical.
Segmentation marketing offers several benefits over mass marketing such as:
I. The company can market more efficiently, target its products or services, channels and
communication programs to ward only consumers that it can serve best.
II. The company can also market more effectively by fine-tuning its products, prices and
programs to the needs of carefully defined segments.
III. The company may face fewer competitors if fewer competitors are focusing on this
market segment.
Developing separate marketing plans for the separate segments requires extra marketing
research, forecasting, sales analysis, promotion planning, and channel management. And trying
to reach different market segments with different advertising campaigns increases promotion
costs. Thus, the company must weigh increased sales against increased costs when deciding on a
differentiated marketing strategy.

iii. Niche Marketing(concentrated marketing)

A niche is a more narrowly defined group, usually identified by dividing a segment into sub
segments or by defining a group with a distinctive set of traits who may seek a special
combination of benefits.
While segments are fairly large and thus normally attract several competitors, niches are fairly
small and normally attract only one or a few competitors. Niches typically attract smaller
companies.
An attractive niche is characterized as follows.
a) Customers have a distinct and complete set of needs.
b) The “nicher” has the required skills to serve the niche in a superior fashion.
c) The nicher gains certain economics through specialization.
d) The niche is not likely to attract other competitors.
e) The nicher can depend on itself.
f) The niche has sufficient size, profit, and growth potential

iv. Micro Marketing

It is the practice of tailoring products and marketing programs to suit the tastes of specific
individuals and locations. Micro marketing includes local marketing and individual marketing.

Local marketing:- It involves tailoring brands and promotions to the needs and wants of local
customer groups: cities, neighborhoods and even specific stores. Local marketing derives certain
drawbacks such as: increasing manufacturing and marketing costs, reduces economics of scale,
creates logistical problems and diluted the overall image of brands. However, the advantages of
local marketing overweigh the drawbacks as it is supported by new developed technologies.

Individual marketing:- also known as markets-of-one marketing, customized marketing and

one-to-one marketing. It involves tailoring products and marketing programs to the needs and
preferences of individual customers. New technologies permit companies to consider a return to
customized marketing or what is called mass customization. Mass customization is the ability to
prepare on a mass basis individually designed products and communications to meet each
customer’s requirements.

4.2.3. Requirements for Effective Segmentation

To be useful market segments must be:
 i. Measurable:- The size, purchasing power and profits of the segment can be
measured.
ii. Accessible:- The market segment can be effectively reached and served.
iii. Substantial:- The market segments are large or profitable enough to serve.
iv. Differentiable:- The segments are conceptually distinguishable and respond
differently to different marketing mix elements and programs.
v. Actionable:- effective programs can be designed for attracting and serving the
segments.
4.2.4. Bases For-segmenting Consumer Markets
There is no single way to segment a market. A marketer has to try different segmentation
variables, alone and in combination, to find the best way to view the market structure. Major
variables used in segmenting consumer markets are: geographic, demographic, psychographics
and behavioral.

i. Geographic Segmentation
Geographic segmentation calls for dividing the market in to different geographical units such as
nations, states, regions, counties, cities or neighborhoods. The company can decide to operate in
one or a few geographical areas or operate in all but pay attention to geographical variations in
wants and preferences.

Geographic segmentation helps companies to pay attention to geographical differences in needs

and wants and to localize the company’s products, advertising, promotion and sales efforts to fit
the needs of individuals in the region.

ii. Demographic Segmentation

In demographic segmentation, the market is divided into groups based on demographic variables
such as age, sex, family size, family life cycle, income, occupation, education, religion race and
nationality. These variables are the most popular bases for segmenting customer groups, largely
because customers needs, wants and usage rates often vary closely with demographic variables
and demographic variables are easier to measure than most other types of variables. Even when
the target market is described in non-demographic terms (say, personality type) the link back to
demographic characteristics is needed in order to know the size of the target market and the
media that should be used to reach it efficiently.

a). Age and life cycle segmentation: Age segmentation is dividing customers based on age
groups like under 10, 10-20, 21-30, 30-50, and above 50 years old.
Life cycle segmentation is dividing customers, based on the life stages customers are in like
single, married, married with children, divorced, separated, etc

b). Gender segmentation:- is dividing the market into different groups based on sex like male,
female or customers with both sexes

c). Income segmentation:- is dividing customers based on their income levels like, lower
income, middle income and upper income.

d). Generation segmentation:- is dividing customers based on age group. The idea is that each
generation is profoundly influenced by the situation in which it grows up – the music, movies,
politics and events of the time.

iii. Psychographics Segmentation

In psychographics segmentation, buyers are divided into different groups on the basis of
lifestyle, social class and personality characteristics. People within the same demographic group
can exhibit very different psychographics profiles.

a). Social class segmentation:- is dividing the market based on the social class they exhibit.
Seven social classes can be identified like: upper uppers, uppers, upper middles (lower uppers),
middle, working class, upper lowers, lower lowers.

b). Lifestyle segmentation:- involves dividing the market into group’s based on lifestyles they
exhibit, based on three major dimensions: activities (work, hobbies, shopping, sports, and social
events), Interests (food, fashion, family, recreation), opinions (about themselves, social issues,
business, products). Life style captures something more than the person’s social class or
personality. It profiles a person’s whole pattern of acting and interacting in the world like
actualizes, achievers, strivers and strugglers.
People’s product interests are influenced by their lifestyles. In fact, the goods they consume
express their lifestyle.

c). Personality and self concept segmentation:-, personality is a person’s distinguishing

psychological characteristics that lead to relatively consistent and lasting responses to his or her
own environment. It can be described in terms of traits such as: self-confidence, dominance,
sociability, autonomy, defensiveness, and adaptability and aggressiveness.

Marketers have used personality variables to segment markets. They endow their products with
brand personalities that correspond to consumer personalities. In the late fifties fords and
Chevrolets were promoted as having different personalities. Ford buyers were identified as
independent, impulsive, masculine, alert to change, and self confident, while Chevrolet owners
were conservative, thrifty; prestige – conscious, less masculine and seeking to avoid extremes.
iv. Behavioral Segmentation
In behavioral segmentation, buyers are divided into groups on the basis of their knowledge,
attitude, use or response to a product. Many marketers believe that behavioral variables:
occasions, benefits, user status, usage rate, loyalty status, buyer readiness stage, and attitude are
the best starting point for constructing market segments.
Occasion segmentation
Buyers can be divided into groups according to occasions when buyers get the idea to buy,
actually make their purchase, or use the purchased item. Occasions may include: vacations,
marriage, separation, divorce; acquisition of a home, injury or illness, change is employment or
career, retirement, death of a family member. Occasions may also be special occasions or regular
occasions.
a). Benefit segmentation
This is dividing the market into groups according to the different benefits that consumers seek
from the product. It requires finding the major benefits people look for in the product class, the
kinds of people who look for each benefit and the major brands that deliver each benefit. For
example, while traveling with all airplane, the traveler either of the three major benefits; comfort,
safety and economy or buy any of the three class tickets; first class, business class and economic
class.
b). User status
Markets can be segmented into groups of nonusers, ex-users, potential users, first – line users
and regular users of a product. For example, the blood banks must mots rely only on regular
donors to supply blood. They must recruit new first time donors and contact ex-donors and each
will require a different marketing strategy. The company’s position in the market will also
influence its focus. Market share leaders will focus on attracting potential users, while smaller
firms will often focus on attracting current users away from the market leader.
c). Usage Rate
Markets can be segmented into light, medium and heavy users, Heavy users are often a small
percentage of the market but account for a high percentage of total consumption. Marketers
usually prefer to attract one heavy user to their product or service rather than several light users.
d). Loyalty status
A market can be segmented by consumer-loyality patterns. Consumers can be loyal to brands,
stores (sellers). Companies (producers). Buyers can be divided in to groups according to their
degree of loyality status.

e). Buyer readiness stage:- A market consists of people in different stages of readiness to buy a
product. Some are unaware of the product, some are aware, some are informed, some are
interested, some desire the product and some intend to buy.
Unaware – aware – informed – interested – desire –intend to buy

f). Attitude: - Five attitude groups can be found in a market: enthusiastic, positive, indifferent,
negative, and hostile.

Marketers rarely limit their segmentation analysis to only one or a few variables. Rather, they are
increasingly using multiple segmentation bases in an effort to identify smaller, better-defined
target groups.

4.2.5. Bases for Segmenting Business Markets

Business markets can be segmented with many of the same variables employed in consumer
market segmentation such as geography, benefits sought, and usage rate. Yet business marketers
can also use several other variables such as demographic, operating variables, purchasing
approaches, situational factors and personal characteristics. The demographic variables are the
most important, followed by the operating variables, purchasing approaches, situational factors
and finally personal characteristics.

i. Demographic: it includes
Industry:- the type of industry which buy the company’s product or which industries should
we serve?
Company size:- the size of the company that buys the company’s product or what size
companies should we serve?
Location:- geographical location to focus on or which geographical areas should we serve?
ii. Operating variables: it includes
Technology: - the type of technology customers use and for use required.
User/nonuser status: - should we serve heavy users, medium users, light users, or non-users?
Customer capabilities: - should we serve customers needing many or few services?
iii. Purchasing Approaches
 Purchasing function organization:- should we serve companies with highly centralized or
decentralized purchasing organizations?
 Power structure:- should we serve companies that are engineering dominated, financially
dominated, marketing dominated, etc companies or customers.
 Nature of existing relationships:- should we serve companies with which we have strong
relationships or simply go after the most desirable companies.
 General purchase policies:- should we serve companies that prefer leasing? Service
contracts? Systems purchases? Sealed bidding?
 Purchasing criteria:- should we serve companies that are seeking quality? Service? Price?
iv. Situational factors:- it includes factors such as:
 Urgency:- should we serve companies that need quick and sudden delivery or service?
 Specific application: should we focus on certain applications of our product rather than
all applications?
  Size of order:- should we focus on large or small order?
v. Personal characteristics:- it includes factors such as:
 Buyer-seller similarity:- should we serve companies whose people and values are similar
to ours?
 Attitudes toward risk:- should we serve risk-taking or risk avoiding customers?
 Loyality:- should we serve companies that show high loyality to their suppliers?

4.2.6. Bases for Segmenting International Markets

Companies can segment international markets using one or a combination of several variables
such as:
A. Geographic location: - This is grouping countries by regions or location. It assumes that
nations close to one another will have many common traits and behaviors with certain
exceptions.
B. Economic Factors: - This is dividing the international market based on economic factors such
as population income level or by their overall level of economic development.
C. Political and legal factors: - This is dividing the international market based on type and
stability of government, receptivity to foreign firms, monetary regulations and the amount of
bureaucracy.
D. Cultural Factors:- These are bases of international market segmentation based on factors such
as common languages, religions, values and attitudes, customs and behavioral patterns.
4.3. MARKET TARGETING
4.3.1. Meaning of Market Targeting
Target marketing is the process of assessing the relative worth of different market segments and
selecting one or more segments in which to compete. According to David Cravens and others “
Target market is a group of existing or potential customers within a particular product market
towards which an organization directs its marketing efforts”. Once the firm has identified its
market-segment opportunities, it has to evaluate the various segments and decide how many and
which to target. We will now examine the process of evaluating and selecting marketing
segments.
4.3.2. Process of Market Targeting
The process of market targeting involves the following steps.
 1. Evaluating the market segments
In evaluating different market segments, a firm must look at three factors: the size and growth of
the segment, the structural attractiveness of the segment, and company’s objectives and
resources.
i. Segment size and growth:- the right size and growth is a relative matter. The largest, fastest
growing segments are not always the most attractive ones for every company. The firm must
ask whether a potential segment has the characteristics that make it generally attractive, such
as size, growth, profitability, scale economics, low risk and so on. In addition to these we
should add other considerations. For example, how easy will it be to persuade the members
of the segment to shift their purchases? (The company should avoid targeting loyals of other
brands or deal – prove shoppers; rather, it should go after dissatisfied shoppers and those who
have not become firmly brand loyal). How much is their business worth? (The company
should target consumers who will spend a lot on the category, stay loyal, and influence
others.)
ii. Segment structural attractiveness:- structural attractiveness of a segment may be affected by
the existence of many strong and aggressive competitors, the existence of many actual or
potential substitutes products, the relative power of buyers and the powerful suppliers who
limit cost and quality of ordered goods and services.
iii. Company objectives and resources:- The firm must consider whether investing in the
segment makes sense given the firm’s objectives and resources. Some big, growing and
structurally attractive segments could be dismissed because they do not mesh with the
company’s long run objectives even if the segment fits the company’s objectives, the
company must consider whether it possesses the skills and resources it needs to succeed in
that segment. The segment should be dismissed if the company lacks one or more necessary
competences and is in no position to acquire them. But even if the company possesses the
required competences, it needs to develop some superior advantages. Companies should
only-enter segments in which they can develop competitive advantages – offer superior value
to customers.
2. Selecting the Market Segments
After evaluating different segments, the company must now decide which and how many
segments to serve. This is the problem of target market selection. In other words, the company
must decide which segments to target. The company can consider the five patterns of target
market selection. They are presented as follows:
i. Single – Segment Concentration/Concentrated Marketing
This is a market coverage strategy in which a firm goes after a large share of one or a few sub
markets. Instead of going after a small share of a large market, the firm goes after a large share
of one or a few sub markets. This provides an excellent way for small new businesses to get a
foot-hold against larger, more resourceful competitors.
Concentrated marketing helps companies to achieve a strong market positions in the segments or
niches it serves because of its greater knowledge of the segment’s needs and the special
reputation it acquires. Many operating economies are enjoyed by the company because of
specialization in production, distribution and promotion. However, concentrated marketing
involves higher – than – the normal risks. As a particular market segment can turn sour or larger
competitors may decide to enter the same segment. For these reasons, money companies prefer
to operate in more than one segment.

ii. Selective Specialization

Here the firm selects a number of segments, each objectively attractive and appropriate, given
the firm’s objectives and resources. There may be little or no synergy among the segments, but
each segment promises to be a money maker. This multi-segment coverage strategy has the
advantage of diversifying the firm’s risk. Even if one segment becomes unattractive, the firm can
continue to earn money in other segments.

iii. Product Specialization

Here the firm concentrates on making a certain product that it sells to several segments. The firm
builds a strong reputation in the specific product area. An example, would be a microscope
manufacturer that sells microscopes to university laboratories, government laboratories and
commercial laboratories. The firm makes different microscopes for these different customer
groups, but does not manufacture other instruments that laboratories might use. The downside
risk is that the product may be supplanted by an entirely new technology.

iv. Market Specialization

Here the firm concentrates on serving many needs of a particular customer group. An example
would be a firm that sells an assortment of products for university laboratories, including
microscopes, oscilloscopes, Bunsen burners, and chemical flasks. The firm gains a strong
reputation for specializing in serving this customer group and becomes a channel for all new
products that the customer group could feasibly use. The down – side risk is that the customer
group may have its budgets cut.

v. Full Market Coverage

Here the firm attempts to serve all customer groups with all the products that they might need.
Only large firms can under take a full market coverage strategy. Large firms can cover a whole
market in two broad ways: through undifferentiated marketing or differentiated mar

Undifferentiated marketing: - In undifferentiated marketing the firm ignores market segment

differences and goes after the whole market with one market offer. It focuses on buyer’s needs
rather than differences among buyers. It designs a product and a marketing program that will
appeal to the broadest number of buyers. It relies on mass distribution and mass advertising. It
aims to endow the product with a superior image in people’s minds. Undifferentiated marketing is
often seen as “the marketing counterpart to standardization and mass production in
manufacturing.” Undifferentiated marketing provides cost economics as such the narrow product
line keeps down production, inventory and transportation costs, mass advertising program keeps
down advertising costs, and research and development costs will be lower presumably, the
company can turn its lower costs into lower prices to win the price – sensitive segment of the
market. However, most modern marketers have strong doubts about this strategy. Because no
single marketing effort may not satisfy all consumers and competition will be high in the largest
segments but ignores smaller ones.
a. Differentiated Marketing.
In differentiated marketing, the firm operates in several market segments and designs
different programs for each segment. Differentiated marketing typically creates more total
sales than undifferentiated marketing. However, it also increases the costs of doing business.
The following costs are likely to be higher.
Product modification costs: Modifying a product to meet different market – segment
requirements usually involves some R&D, engineering, and /or special toeling costs.
Manufacturing costs:- It is usually more expensive to produce 10 units of 10 different products
than 100 units of one product. The longer the production setup time and smaller the sales volume
of each product, the more expensive the product became. However, if each model is sold in
sufficiently large volume, the higher costs of setup time may be quite small per unit.
Administrative costs:- the company has to develop separate marketing plans for each market
segment. This requires extra marketing research, forecasting, sales analysis, promotion, planning
and channel management.
Inventory costs:- It is more costly to manage inventories containing many produces than
inventories containing few products.
Promotion costs:- the company has to reach different market segments with different promotion
programs. The result is increased promotion – planning costs and media costs.
Since differentiated marketing leads to both higher sales and higher costs, nothing general can be
said regarding this strategy’s profitability market. If this happens, they may want to turn to
counter segmentation to broadened its target market for its baby shampoo to include adults. And
Smith Kline Beecham launched its aquafresh toothpaste to attract three benefit segments
simultaneously: those seeking fresh breath, whiter teeth, and cauity protection.
4.4. SEGMENT POSITIONING
4.4.1. Meaning of Segment Positioning
After a target market has been selected a company will naturally find others competing in that
segment. The next task is to develop a marketing plan that will enable your product to compete
effectively against them. It is unlikely that success will be achieved with a marketing program
that is virtually identical to competitors for that already have attained a place in the minds of
individuals in the target market and have developed brand loyalty. Since people have a variety of
needs and tastes, market acceptance is more easily achieved by positioning.

Positioning is the act of designing the company’s offering and image so that they occupy a
meaningful and distinct competitive position in the target customer’s mind.
For example, one auto company might choose to differentiate its cars on durability, while its
competitors may choose to emphasize fuel economy, comfort or smoothness of ride. The end
result of positioning is the successful creation of a market – focused value proposition, a simple
clear statement of why the target market should buy the product.

4.4.2. Positioning Strategies

The act of creating an image about a product or brand in the consumers mind is known as
positioning. In the words of Kotler, “Positioning is the act of designing the company’s offer and
image so that it occupies a distinct and valued place in the target consumer’s minds.” In short,
the process of creating an image for a product in the minds of targeted customers is known as
product positioning. Marketers can follow several positioning strategies. They can position their
products on specific product attributes such as low price, performance, benefits, usage occasions,
against a competitor and combination of many attribute.

Each firm must differentiated its offer by building a unique bundle of competitive advantages
that appeal to a substantial group within the segment. The positioning task consists of three steps.

1. Identifying a set of possible competitive advantages on which to build a position.

2. Selecting the right competitive advantages
3. Effectively communicating and delivering the chosen position to the market.

4.4.2.1 Identifying Possible Competitive Advantages

Competitive advantage is an advantage over competitors gained by offering consumers greater
value, either through lower prices or by providing more benefits that justify higher prices.

Consumers typically choose products and services that give them the greatest value. Thus the
key to winning and keeping customers is to understand their needs and buying processes rather
than competitors do and to deliver more value.

Positioning begins with actually differentiating the company’s marketing offer so that it will give
consumers more value than competitors’ offers do. A company or market offer can be
 differentiated alone the lines of product, services, people or image. Differentiation is the act of
designing a set of meaning-full differences to distinguish the company’s offering from
competitors’ offerings. Areas of differentiation could be:

i. Product Differentiation:- Differentiation of physical products takes place along a continum. At one
extreme we find products that allow little variation such as chicken, steel, asprein. At the other
extreme are products that can be highly differentiated, such as automobiles, commercial machinery
and furniture. Differentiation variables of a product are: features, performance, conformance,
durability, reliability, repairability, style and design.
ii. Service Differentiation: - company’s can differentiate their services from competitors services
based on such variables of service as: Ordering ease, delivery, installation, customer training,
customer consulting, maintenance and repair and other miscellaneous services.
iii. People Differentiation:- companies can gain a strong competitive advantage through hiring and
training better people than their competitors do. Better – trained personnel exhibit six
characteristics: Competence (possess the required skill and knowledge), curtsey (friendly,
respectful and considerate), credibility (trustworthy), reliability (perform the service consistently
and accurately), responsiveness (respond quickly to customers’ requests and problems),
communication (make an effort to understand the customer and communicate clearly).
iv. Image Differentiation:- A company or brand image should convey the product’s distinctive
benefits and positioning. Image is the way the public perceives the company or its products.
Image can be implanted in the publics mind through: symbols ( a strong image consists of one or
more symbols that trigger company or brand recognition), written and audiovisual media. The
chosen symbol must be worked into advertisement that convey the company or brand
personality, atmosphere (The physical space in which the organization produces or delivers its
products and services), events (a company can build an identity through the type of events it
sponsors.

v. Channel Differentiation:- Companies can achieve differentiation through the way they shape their
distribution channels, particularly those channels’ coverage, expertise and performance.
2. Selecting the Right Competitive Advantages (Developing a Positioning Strategy):-

 A company must carefully select the ways in which it will distinguish itself from
competitors. A difference is worth establishing to the extent that it satisfies the following
criteria:

 Important: - The difference delivers a highly valued benefit to a sufficient number of

buyers.

 Distinctive: - The difference either isn’t offered by others or is offered in a more

distinctive way by the company.

 Superior: - The difference is superior to other ways of obtaining the same benefit.

 Communicable:- the difference is communicable and visible to buyers

 Preemptive: -The difference cannot be easily copied by competitors

 Affordable: - The buyer can afford to pay for the difference.

 Profitable: - The company will find it profitable to introduce the difference.

3. Effectively Communicating and Delivering the Chosen Position to the Market: -

Marketers must decide what to communicate and how to deliver their positioning to the target
market.Many marketers advocate promoting only one benefit to the target market. Reeves, said
that a company develop a unique selling proposition for each brand and stick to it. Each brand
should pick an attribute and tout itself as “number one” on that attributes. The most commonly
promoted number – one positioning are: “Best quality”, “Best service”, “Lowest price”,” Best
value” and “Most advanced technology”. If a company hammers away at one of these
positioning and convincingly delivers on it, it will probably be best known and recalled for this
strength.Other marketers think that companies should position themselves on more than one
differentiating factor. (Not everyone agrees that single – benefit positioning is always best).

 In general, a company must avoid your major positioning errors.

  Under positioning:- failing to ever really position the company at all. Some companies
discover that buyers have only a vague idea of the company or that they do not really
known anything special about it.

 Over positioning:- buyers may have too narrow an image of a brand.

 Confused positioning:- buyers might have a confused image of the brand resetting from
the company’s making too many claims or changing the brand’s positioning too
frequently.

 Doubtful positioning:- buyers may find it hard to believe the brand claims in view of the
product’s factures, price or manufacturer.

The advantage of solving the positioning problem is that it enables the marketer to solve the
marketing mix problem.

The marketing mix-product, price, place, and promotion-is essentially the working out of the
tactical details of the positioning strategy. Thus a firm that sizes upon the “high quality” position
knows that it must produce high – quality products, charge a high price, distribute through high
class dealers, and advertise in high – quality magazines. This is the primary way to project a
consistent and believable high-quality image. Once the company has developed a clear
positioning strategy, it must communicate that positioning effectively.