INSTITUTE –University School of

Business
DEPARTMENT -Management
M.B.A
MARKETING MANGEMENT- 23BAT-607
Dr. Bindu Aggarwal
Associate Professor
Chandigarh University

UNIT-1 Marketing
Management- DISCOVER . LEARN . EMPOWER
Segmentation ,
Targeting and
Positioning
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 Course Outcome https://skillshop.exceedlms.com
CO Title Level
Number
• Space for visual (size 24)

CO1 Understand

Provide information to student by

explaining the key principles and
concepts of marketing.

CO2 Apply
Will be covered in this
Students will be able to Construct an
effective marketing strategy, including lecture
a marketing mix for a product/service.

CO3 Analyze

Plan an integrated marketing

communications campaign that uses a
range of mass communications media
that are well suited to reach the target
market. 2
Steps in STP
 Market Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers. (Philip Kotler)
Positioning process – Steps involved in Positioning

• (1) Identifying the Competitors –

• A first step is to identify the competition. This step is not as simple as it seems to be. For
example, ‘Pepsi ‘ might define its competitors as follows:
• (1) Other cola drinks
(2) Non-diet soft drinks
(3) All soft drinks
(4) Non-alcoholic beverages,
(5) All beverages except water
• One thing, which should be clear to you, is that there is basically two types of competitors
• -Primary competitors i.e., competitors belonging to the same product class
-Secondary competitors, those belonging to other product category.
In the above example other cola drinks are primary competitors and other drinks and
beverages are secondary competitors

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(3) Determining the competitor’s positions

• Our next focus should be to determine how different brands (including our own brand) are
positioned with respect to the relevant attributes selected under the previous step. At this
point we should be clear about what is the image that the customer has about the various
product brands? You have to see how are they positioned in respect to each other? Which
competitors are perceived as similar and which as different? This judgment can be made
subjectively. However a research can be taken up for getting the answer of these questions.

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(2) Determining how the Competitors are Perceived and
Evaluated –

• The second step is related to determining the product positioning which is basically done
so as to see, when the competitors products are purchased by the customers. It is to see
comparative view. An appropriate set of product attributes should be chosen. The term
‘attributes’ includes not only product characteristics and consumer benefits but also
product associations such as product use or product users. In any product category, there
are usually a host of attribute possibilities.

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(4) Analyzing the Customer

• Now you need to analysis the customers habits and behaviour in a particular market
segment. The following questions need attention while understanding the customer and
the market – (i) how is market segmented? (ii) What role does the product class pay in the
customers life style? What really motivates the customers? And what habits and behavior
patterns are relevant?
• The segmentation question is, of course, critical. There are various approaches to
segmentation but out of all benefit segmentation is relevant here, which focuses upon the
benefits or attributes that a segment believes to be important. In order to specify that
benefit segments, it is useful to highlight the role of ‘ideal object’ as a tool.

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(5) Making the positioning Decision

• The above four steps provide you a useful backgrounds and are necessary to be conducted
before taking any decision about positioning. The managers can carry these steps or
exercises. After these four exercises, the following guidelines can be offered to reach a
positioning decision: –
(i) An economic analysis should guide the decision.
• (ii) Positioning usually implies a segmentation commitment.
• (iii) If the advertising is working, the advertiser should stick to it.
• (iv) Do not try to be something, your are not.
• (v) In making a decision on position strategy, symbols or set of symbols must be
considered.

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(6) Monitoring the position

• An image objective, like an advertising objective should be measurable. It is necessary to

monitor the position overtime, for that you have variety of techniques that can be
employed it can be on the basis of some test and interviews which will help to monitor any
kind of change in the image.
• Thus, the first four steps in the positioning process provides a useful background. The fifth
one only is taken to make the position decision. The final step is to evaluate and measure
and follow up.

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 Basis of positioning the product

Attribute positioning :- size or number of years in existence

Eg : Sunfeast positions its snacky brand as bigger lighter and crisper.

Benefit positioning : Product is positioned as the leader in a certain benefit.

Eg : Hyundai santro
Headline – India’s best –loved family car is now also India’s ‘simplest car to
drive’

Use or Application positioning: Positioning the product as best for use and
application .
Eg: Kenstar positioned its product as UNEXPECTEDLY COLD
User positioning:- for some user group
Eg :- Parle-G for kids

Competitor positioning :- the product claims to be better in

some way than a particular competitor .

Quality and price positioning :-The product is positioned as

offering the best value .
Eg : Big Bazar
Positioning Strategy

• 1) Using Product characteristics or Customer Benefits as a positioning strategy

• 2) Pricing as a positioning strategy
• 3) Positioning strategy based on Use or Application
• 4) Positioning strategy based on Product Process
• 5) Positioning strategy based on Product Class
• 6) Positioning strategy based on Cultural Symbols
• 7) Positioning strategy based on Competitors

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Perceptual mapping

• Perceptual mapping is a diagrammatic technique used by marketers in an attempt to

visually display the perceptions of customers or potential customers. Typically the position
of a product, product line, brand, or company is displayed relative to their competition.
Some perceptual maps use different size circles to indicate the sales volume or market share
of the various competing products.

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How to Choose a Positioning Strategy for Products

• Developing a positioning strategy requires that management identifies key competitors,

relevant attributes, competitor positions, and analyses the market segments; i.e., the
groups of customers. The position decision also involves selection of the desired position,
its implementation, and monitoring. Some firms find it easy to choose their positioning
strategy in a new segment, especially when they have already established their quality
reputation in certain segments.
• However, in many cases, two or more firms will go after the same position, say, Quality.
Then, each will have to find other ways to set itself apart from its competitor, such as by
promising “high quality with after sale technical service” or “high quality for a lower price.”
Thus, each firm has to differentiate its offer by building a unique, unmatched bundle of
competitive advantages that appeals to a substantial group of consumers in the segment.

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Positioning strategy consists of three steps as
follows:
• Step # 1. Identification of Possible Competitive Advantages:
• Consumers often choose or go for those products or services which give them the greatest
value and satisfaction. Hence, the key to win over a large part of the consumers and make them
permanent clientele, is to understand their needs, wants, requirements, and buying behaviour
better than the competitors do, and then to deliver more value than the competitors do.
• Thus positioning begins with actually differentiating the firm’s marketing offer so that it will give
consumer more value than competitors’ offer do. It has to be noted that solid positions cannot
be built on hollow promises. Differentiation can be made only on the basis of some extra
potential-advantages.
• A company can differentiate its market offer on various bases, such as product; product
performance; product style and design; product’s consistency, durability, reliability, or
repairability; best quality; lower costs; services-widespread distribution centres, free after-sale
service, easy and timely delivery, free installation, repairing services, etc.

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Step # 2. Choosing the Right Competitive Advantages:

• When a company discovers several potential competitive advantages, then it

must choose those advantages upon which it will build its positioning strategy.
• At this stage, the company has to decide on two important issues:
• (a) How many differences in advantages to promote—on what attributes the
company is number one in the market, or what is its unique selling proposition.
The major propositions may be: best quality, best service, lowest price, best
value, most advanced technology, easy purchase finances, etc.
• (b) Which differences in advantages to promote—all brand differences are not
always meaningful or worthwhile. Hence the company must carefully select the
ways in which it will distinguish itself from competitors.

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A meaningful difference satisfies the following
criteria – It is:
• (i) Important – delivers a high valued benefit to the target buyers.
• (ii) Distinctive – competitors do not offer such difference, or the company offers
it in a more distinctive way.
• (iii) Superior – superior to other ways which customers might obtain the same
benefit.
• (iv) Preemptive – competitors cannot easily copy the difference.
• (v) Affordable – buyers can afford to pay for the difference.
• (vi) Profitable – the company can introduce the difference profitably.
• (vii) Communicable – the difference is communicable and visible to buyers.

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Step # 3. Selecting an Overall Positioning Strategy:

• More for More

• More for the Same
• The Same for Less
• Less for much Less
• More for Less

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• Developing a Positioning Statement:
• Positioning statement is a statement that highlights company or brand positioning. It clarifies
the need of the target segment that the brand would satisfy and how the firm’s offering would
be different from those of its competitors.
• Communicating and Delivering the Chosen Position to the Market:
• After a company has chosen its position, it must take appropriate measures to deliver and
communicate the desired position to the target market. The positioning strategy must be
supported by company’s marketing-mix efforts. For example, if a company positions its product
on “high quality,” then it must produce high quality products, charge comparatively high price,
distribute its products through high quality dealers, and advertise in high quality media.
• It must provide better after-sale service. It must attend quickly and efficiently to the complaints
of the customers, if any. This is the only way to build a high quality position and image. Mere
selection of a good positioning strategy is not sufficient, but it must be properly implemented
also.

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Why use a perceptual map?

• We get a true understanding of how our brand is perceived in the marketplace

• We can track how the perception of our brand is evolving over time, with new products and
campaigns
• We can track the perception of competitor products and measure the impact of their
marketing strategies
• We can identify positioning preferences (i.e ideal combination of product attributes) for
different market segments
• We can identify possible gaps and opportunities for new products
• We can identify possible opportunities for repositioning our brand

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 Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Business GD Forum Attendance Scaled

Test Quiz Marks

Max. Marks 10 10 6 4 4 4 2 40

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THANK YOU

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