| After the process of segmentation the next step is for the organisation to decide how it is going to target these particular group(s). There are three targeting options an organisation can adopt. |
Option 1 .
Undifferentiated marketing - Sometimes referred to as mass marketing the firm may decide to aim its resources at the entire market with one particular product. Coca Colas original marketing strategy was based on this form. One product aimed at the mass market in the hope that a sufficient amount of buyers would be attracted., although there are now changes in their product line to cater for growing dietary and caffeine free needs of consumers.
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Option 2
Differentiated marketing strategy - Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. An example of this would be airline companies offering first, business (segment 1) or economy class tickets (segment 2) , with separate marketing programmes to attract the different groups.
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Option 3
Concentrated Marketing: Where the organisation concentrates its marketing effort on one particular segment. The firm will develop a product that caters for the needs of that particular group. For example Rolls Royce cars aim its vehicles at the premium segment, same as Harrods within the UK .
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Positioning.
After an organisation has selected its target market the next stage is to decide how it wants to position itself within that chosen segment. Positioning refers to ‘how organisations want their consumers to see their product'. What message about the product or service is the company trying to put across. Daewoo cars has successfully positioned themselves as the family value model. The Skoda brand which has been taken over by Volkswagen has been re-positioned as a vehicle which had negative brand associations, to one which regularly wins car of the year awards. The positive comments from the industry and attributes of this vehicle is slowly changing the perception of consumers about the Skoda brand. |
Developing a positioning strategy
Developing a positioning strategy depends much on how competitors position themselves. Do organisations want to develop ‘ a me too ' strategy and position themselves close to their competitors so consumers can make a direct comparison when they purchase, or does the organisation want to develop a strategy which positions themselves away from their competitors . Offering a benefit which is superior depends much on the marketing mix strategy the organisation adapts. The pricing must reflect the benefit offered, the promotion strategy must communicate this benefit.
Ultimately positioning is about how you want consumers to perceive your products and services and what strategies you would adopt to reach this perceptual goal.
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