Kotler
Chapter 7
Targeting, and Positioning
Building the Right Relationships with the Right Customers
Learning Objectives
1. Explain how companies identify attractive market segments and choose a target marketing strategy. 2. Discuss how companies position their products for maximum competitive advantage in the marketplace.
Chapter Overview
The chapter emphasizes the key steps in target marketing: market segmentation, market targeting, and market positioning. Market segmentation provides a method to divide or segment the market into narrow segments (using a variety of different meaningful variables—these variables or bases are discussed at length in the chapter) that can be better reached with the resources of the marketer. Market targeting examines each of the designated segment’s attractiveness and chooses one or more that match the marketing desires and objectives of the organization. Various coverage strategies are explained and detailed. The concept of market positioning arranges for a product to occupy a clear, distinctive, and desirable place relative to competition. Various methods for achieving significant differentiation are explained and illustrated. The above three steps aid the marketer in effectively arranging the company’s marketing mix so that the likelihood of consumer response and competitive advantage is maximized by the organization.
Chapter Outline
1. Target Marketing a. Market segmentation reveals the firm’s market segment opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can serve best.
Evaluating Market Segments
b. In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. i. The company must first collect and analyze data on current segment sales, growth rates, and expected profitability for various segments. ii. It will
Targeting, and Positioning
Building the Right Relationships with the Right Customers
Learning Objectives
1. Explain how companies identify attractive market segments and choose a target marketing strategy. 2. Discuss how companies position their products for maximum competitive advantage in the marketplace.
Chapter Overview
The chapter emphasizes the key steps in target marketing: market segmentation, market targeting, and market positioning. Market segmentation provides a method to divide or segment the market into narrow segments (using a variety of different meaningful variables—these variables or bases are discussed at length in the chapter) that can be better reached with the resources of the marketer. Market targeting examines each of the designated segment’s attractiveness and chooses one or more that match the marketing desires and objectives of the organization. Various coverage strategies are explained and detailed. The concept of market positioning arranges for a product to occupy a clear, distinctive, and desirable place relative to competition. Various methods for achieving significant differentiation are explained and illustrated. The above three steps aid the marketer in effectively arranging the company’s marketing mix so that the likelihood of consumer response and competitive advantage is maximized by the organization.
Chapter Outline
1. Target Marketing a. Market segmentation reveals the firm’s market segment opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can serve best.
Evaluating Market Segments
b. In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. i. The company must first collect and analyze data on current segment sales, growth rates, and expected profitability for various segments. ii. It will