Market Targeting

After a company has defined market segments, it can enter one or many segments of a given market. Market targeting involves evalu­ating each market segment's attractiveness and selecting one or more segments to enter. A company with limited resources nveht decide to serve only one or a few special segments. This strategy limits sales but can be very profitable. Or a company might choose to serve several related segments—perhaps those that have different kinds of customers but with the same basic wants. Or a large com­pany might decide to offer a complete range of products to serve all market segments.

Market Positioning

Once a company has decided which market segments to enter, it must decide what «positions» it wants to occupy in those segments. A product's position is the place the product occupies in consumers' minds relative to competitors. If a product is perceived to be exactly like another product on the market, consumers will have no reason to buy it.

Market positioning-\s arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Thus, marketers plan positions that dis­tinguish their products from competing products and give them the greatest strategic advantage in their target markets. For example, the Hyundai automobile is positioned on low price as «the car that makes sense». Chrysler offers «the best-built, best-backed American cars»; Pontiac says, «we build excitement»; and at Ford, «quality is job one». Jaguar is positioned as «a blending of art and machine», while Saab is «the most intelligent car ever built». Mercedes is «en­gineered like no other car in the world»; the luxurious Bentley is «the closest a car can come to having wings». Such deceptively sim­ple statements form the backbone of a product's marketing strategy.

To plan a product's position, the company first identifies the ex­isting positions of all the products and brands currently serving its market segments. It next figures out what consumers want with re­spect to major product attributes. The company then selects a posi­tion based on its product's ability to satisfy consumer wants better than competitors' products. Finally, it develops a marketing program that communicates and delivers the product's position to target con­sumers.

I. Key terms:

Target consumers — цільові споживачі — a fairly homogeneous group of customers to whom a company wishes to appeal.

Market segment — сегмент ринку — a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.

Marketing segmentation — сегментування ринку — a two-step process of: 1) naming broad product-markets and 2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Market targeting — вибір цільового ринку — evaluating market segment's attractiveness and selecting target segment.

Market positioning — ринкове позиціювання (вибір позиції на ринку) — is the process marketers go through in manipulating the marketing mix to achieve a particular product position in the minds of target consumers.

II. Vocabulary notes:

forecast, v.

1) say in advance what is likely to happen — прорікати, проро­кувати; передбачати; робити прогноз;

to forecast the future — про­віщати майбутнє;

2) be a sign of sth. — бути передвісткою (ознакою);

these clouds forecast the storm — ці хмари провіщають грозу;

forecast, n.

statement that forecasts sth. — прорікання, пророкування; пе­редбачення, завбачення;

weather forecast — прогноз погоди;

perform, v.

1) do (a piece of work, sth. one is ordered to do, sth. one has promised to do) — виконувати; робити, зробити, здійснювати;

perform a task — виконувати завдання;

perform an experiment — проводити дослід;

2) act (a play); play (music); sing, etc. before an audience — грати, виконувати фоль), ставити (п'єсу), грати на музичному інструменті;

performance, n.

1) performing — виконання, здійснення; інтенсивність праці;

2) notable action, act, behavior — дія, вчинок;

put up a good performance — добре поводитися (проявити себе);

What a per­formance! — What shocking behavior — Яка жахлива поведінка!

3) performing of a play at the theatre; public exhibition; concert;

show — виконання; гра; вистава; спектакль; виступ, концерт; кі­носеанс;

evaluate, v.

1) find out, decide the value of sth. — оцінювати, визначати вартість; давати оцінку;

визначати якість (важливість);

2) find out the amount, quantity of sth. — визначати кількість;

evaluation, n.

1) finding out or deciding the value or amount of sth. — оцінка; оцінювання, визначення (кількості тощо);

2) analysis — аналіз (даних);

environment, n.

surroundings, circumstances, influences — оточення (навколиш­нє середовище); зовнішнє становище;

perceive, v. (formal)

1) become aware of, esp. through the eyes or the mind — розуміти, усвідомлювати; збагнути; помітити;

2) feel, differentiate — відчувати; почувати; сприймати; розрізняти;

perception, n. (formal)

1) process by which we become aware of changes (through the senses of sight, hearing, etc.) — сприймання;

organs of perception — органи чуттів; усвідомлення, розуміння;

2) act or power of perceiving — здатність сприймати; уявлення (про щось); проникливість, здатність розуміти;

predict, v.

1) say, tell in advance — провіщати, прорікати; передбачати; пророкувати;

predict the future — передбачати майбутнє;

2) be, go ahead — передувати, випереджати;

prediction, n.

sth. predicted, prophecy — передбачення, провіщення, пророцтво, прогноз; попередження; застереження.

III. Answer the following questions:

1. What does the strategic plan define?

2. What role does marketing play in the organization?

3. Characterize the entire marketing management process and the forces influencing company marketing strategy.

4. Why does the company engage in marketing analysis, planning, im­plementation and control?

5. What does sound marketing require?

6. Why is future market growth important?

7. How can consumers be grouped?

8. What does a market segment consist of?

9. What does market targeting involve ?

10. How can market positioning be defined?

11. What does the company do to plan a product's position?