- Select a target group
- Stake out a market position
- Develop a marketing mix
1) Select a Target Group
The consumers which are selected as the focus of the marketing program; it covers the potential customers you think are most likely to need or want your product.
Advertising Target Vs. Consumption Target
If you market gasoline, potatoes, electricity or some other product that most people need, it makes sense to market far and wide.
However, if someone isn’t a likely customer, or if someone buys too little from you, you’ll waste both time and money trying to convince him or her to buy.
You spread yourself too thin trying to sell to everybody. It is best to focus.
2) Stake out a market position
The spot that a product holds in the minds of current and potential customers, relative to competitive products.
Smart marketers do everything possible to achieve the top position in the customer’s mind.
Positioning is the most important foundation concept in marketing.
The process of achieving a desired spot in the minds of customers and potential customers; you can position your company, your products, your technologies, or any other entity that commands customer attention.
Only one product/brand can hold the top position in your mind. Whatever you do, it is the market that ultimately decides the position you occupy.
Romance & Positioning: You can influence someone’s thoughts and feelings, but you can’t force anyone to fall in love with you.
- It is better to be in the market first.
- It is better to be in the consumer’s mind first than to be first in the market.
- Re-positioning is one of the hardest things to do in marketing.
- Marketing is about perceptions, not products.
What to do if you’re not at the top?
- Try to dislodge the leader in a direct competitive assault.
- Acknowledge that the leader already has that position and find a comfortable position beneath the leader. Price is a common way to do this.
- Try to change the way the market thinks about the category.
Everything communicates. Advertising is an important, but not the only tool in positioning your brand.
3) Develop a Marketing Mix
The Marketing Toolkit: All 4 Ps should appeal to your target consumers.
Product Price Place Promotion
Product Value: A measure of the value that products represent to customers; equal to the benefits a product provides minus the costs of acquiring and owning it.
Price: The value, usually in monetary terms, that sellers ask in exchange for the products they are offering.
Place (Distribution): The process of moving products from the producer to the consumer, which may involve several steps and participation of multiple companies.
In many industries, mass marketing is gradually being replaced by target marketing as companies target groups of customers that are smaller and more focused.