Positioning – is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
2 Positioning Strategies:

  1. Head-to-Head Positioning
  2. Differentiated Positioning

Perceptual Map – a means of displaying via two dimensions the location products or brands occupy in the minds of consumers.

 Perceptual mapping is most often used tool to position/reposition the product relative to competitors




Targeting – identifying which market segments offer the best market-product fit.

4 Targeting Strategies:

  1. Undifferentiated (Mass marketing) – one product targeted at all segments.
  2. Concentrated (Niche Marketing) – one product targeted at one segment.
  3. Differentitated – Multiple products targeted at multiple segments
  4. Customized (1-to-1 Marketing) – customized product for each customer.

Criteria to use in choosing target segments:

  • market size,
  • expected growth,
  • competitive position,
  • cost of reaching the segment,
  • compatibility with the organization’s objectives and resources.



Market Segmentation involves aggregating prospective buyers into groups that have two key characteristics.

1. have common needs

2. respond similarly to a marketing action.


Step Segmentation Process:

1. Group potential buyers into segment

2. Group products to be sold into categories

3. Develop market-products grid and estimated size of market


Two ways to segment Markets:

Based on Customer Characteristics – Geographic, Demographic, Psychographic variables

Based on Buying Situations – Usage, Benefits Sought, Frequency.


Market Product Grid:

Marketing Synergies run horizontally across for each market segment.

Product Synergies run vertically down for each product



Marketing Channel – agents involved in the process of making a product or service available for use or consumption by consumers or industrial users.

Channel Members: Producer, Distributor/Agent/Broker, Wholesaler/Dealer, Retailer, Customer


Functions of a Marketing Channel

  • Transactional Function
  • Logistical Function
  • Facilitating Function

Channel Structures:

  • Traditional Channel or Online Channel
  • Direct or Indirect Channel

Channel Conflicts:

  • Vertical Channel Conflict- between members at different levels
    • Disintermediation: when one channel member by-passes another member and buys or sells direct
    • Profit Sharing: distribution of profit margins among channel members
    • Inadequate selling effort by retailers:
  • Horizontal Channel Conflict – between members at the same level
    • Increased distribution coverage
    • The same brand carried by different types of retailers
    • “Free Riding” Problem

Factors Influencing Channel Choice:

  • Target Market Coverage
    • Intensive
    • Extensive
    • Selective
  • Buyer Requirements
  • Information, Convenience, Variety, Service.
  • Profitability

  • Promotions

    Channel Strategies Promotions:
    Push Strategy: directing promotional mix to channel members to gain their cooperation in ordering and stocking the product: use primarily personal, direct selling, and trade promotions
    Disadv: intermediaries may not want to stock up

     Pull Strategy: direct promotional mix at ultimate consumers, direct-to-consumer promotions, rebates, etc;.  consumers ask retailers for the product, who then orders it from wholesalers – demand stimulation works upward thru the channel

    Consumer response to  promotions (Hierarchy of Effects):

    1.  Awareness
    2.  Interest
    3.  Evaluation
    4.  Trial
    5.  Adoption

    Setting Promotion Objectives:

    1. Percentage of Sales
    2. Competitive Parity
    3. All-you-can-Afford Budgeting
    4. Objective and Task Budgeting

    Sales Promotion – a mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service.

    Consumer Promotions – rebates, coupons, deals, free-samples, point-of-purchase display, contests, sweekstakes; any sales promotions that reaches consumers directly.

    Trade Promotions – trade allowances, merchandise, case, financial allowance, quantity discounts, co-operative advertising; promotions given to channel intermediaries

    1. Customer don’t accept the product

    2. Technical problem (product’s defect)

    3. Wrong moment of launch


    4 Adopter categories:

    • Innovators
    • Early Adopters
    • Late Adopters
    • Laggards

    Managing PLC:

    Product Modification: changing product characteristics to boost sales (new color, flavor, product variant, etc)


    Market Modification:

    • Finding New Users (e.g. Sony launching video games for Under 13 age group)
    • Increasing Use (e.g. Crest advertising to brush twice daily, increase consumption)
    • Finding New Use situations (e.g. Arm & Hammer baking soda, used to deodorize refrigerators)

    Product Repositioning: changing the place a product occupies in a consumer’s mind relative to competitors (perceptual map)

    Repositioning Strategies

    • Reacting to competitor Positioning
    • Reaching a New Market
    • Catching a rising trend
    • Changing the value offered.
    • Trading Up
    • Trading Down – Downsizing