Understanding Targeting And Positioning

Targeting and positioning are the next two steps after market segmentation in the STP marketing framework. They help you refine your approach to reach the right audience and create a distinct image for your product or service within that audience.

Understanding Targeting and Positioning: A Complete Guide for Marketers

In the dynamic world of marketing, crafting a message that truly connects with your audience is the key to success. Two crucial steps that ensure this connection are targeting and positioning. These concepts are part of the well-known STP marketing model — Segmentation, Targeting, and Positioning — and play a significant role in shaping any brand’s strategy.

In this article, we’ll dive deep into targeting and positioning, why they matter, their types, real-world examples, and how businesses can master them to stay ahead in competitive markets.

What Is Targeting?

Targeting refers to the process of selecting specific segments from a broader market to serve with tailored marketing efforts. After dividing a market into distinct groups (segmentation), companies must decide which segment(s) they want to pursue. This decision is based on factors like size, profitability, accessibility, and alignment with company goals.

• It avoids wasting resources on uninterested audiences.
• It helps deliver relevant messages to people who are most likely to convert.
• It increases customer satisfaction by addressing specific needs.

Types of Targeting Strategies

1. Undifferentiated Targeting (Mass Marketing)

   • One-size-fits-all strategy.

   • Example: Coca-Cola’s original marketing in the 20th century.

2. Differentiated Targeting (Segmented Marketing)

   • Different marketing messages for different segments.

   • Example: Nike targeting athletes, women, kids, and casual wearers differently.

3. Concentrated Targeting (Niche Marketing)

   • Focusing on a single, well-defined segment.

   • Example: Rolex targeting luxury watch enthusiasts.

4. Micromarketing (Local/Individual Marketing)

   • Tailoring products to individuals or local areas.

   • Example: Starbucks offering region-specific flavors.

Targeting Process

The targeting process involves a few key steps:

1. Evaluate Segment Attractiveness
   Look at the size, growth, competition, and potential profit of each segment.

2. Select Target Market(s)
   Choose the segment(s) that best align with your strengths and goals.

3. Develop Buyer Personas
   Create detailed profiles representing ideal customers to guide content and messaging.

What Is Positioning?

Positioning is about creating a unique space in the mind of your target audience. It’s how your product or brand is perceived relative to competitors. Successful positioning answers questions like:

• What makes your brand different?

• Why should people choose you over others?

In essence, positioning defines your brand’s identity and value proposition.

The Importance of Positioning

• It differentiates your product in saturated markets.

• It creates an emotional connection with consumers.

• It influences purchase decisions through perceived value.

Types of Positioning Strategies

1. Product Attribute Positioning
   Focus on specific features or qualities.
   Example: Volvo highlighting safety.

2. Price-Based Positioning
   Competing on low or premium pricing.
   Example: Walmart (low price), Apple (premium).

3. Quality or Prestige Positioning
   Targeting consumers looking for luxury and quality.
   Example: Louis Vuitton.

4. Use or Application-Based Positioning
   Positioning around specific usage scenarios.
   Example: Gatorade for athletic performance.

5. Competitor-Based Positioning
   Directly comparing with rivals.
   Example: Pepsi vs. Coke.

6. Benefit-Based Positioning
   Focusing on the core benefit provided.
   Example: Sensodyne for sensitive teeth.

Creating an Effective Positioning Statement

A positioning statement clearly articulates how your product meets the needs of a specific market. A common format is:

“For [target audience], [brand name] is the [category] that [benefit] because [reason to believe].”

Example:

“For young adults seeking affordable fashion, H&M is the clothing brand that delivers trendy styles at budget-friendly prices because it leverages global supply chains and trend forecasting.”

Steps to Build a Positioning Strategy

1. Understand Your Target Market
   Use surveys, analytics, and research to know their preferences and pain points.

2. Analyze Competitors
   Identify how other brands are positioned in the same space.

3. Identify Your Unique Value
   Highlight what makes your product special.

4. Craft Your Positioning Message
   Use concise, compelling language that resonates with your audience.

5. Communicate Consistently
   Ensure your brand message is clear across ads, websites, social media, and packaging.

Real-World Examples

• Tesla
  Targeting: Environment-conscious tech-savvy consumers.
  Positioning: A luxurious, high-tech electric vehicle brand that’s redefining transportation.

• Dove
  Targeting: Women of all ages and body types.
  Positioning: Beauty that celebrates real, natural women rather than unattainable standards.

• Red Bull
  Targeting: Young adults, especially extreme sports lovers.
  Positioning: A brand that gives energy and wings to go beyond limits.

The Link Between Targeting and Positioning:

These two concepts work hand-in-hand. Your understanding of your target segment informs your positioning strategy. You need to know your audience’s needs, wants, and pain points to craft a message that positions your product as the ideal solution.

For example, imagine a company selling athletic shoes. Through segmentation, they identify two potential target markets:

• Young athletes who prioritize performance and cutting-edge technology.
• Budget-conscious fitness enthusiasts who value comfort and durability.

Their positioning strategy would differ for each segment. For the young athletes, they might emphasize the shoe’s innovative features and lightweight design. For the budget-conscious group, they might focus on affordability and long-lasting performance.

Targeting vs. Positioning – Key Differences

Common Mistakes to Avoid

1. Trying to Target Everyone
   If you try to appeal to all, you appeal to none.

2. Inconsistent Messaging
   Confused customers don’t buy. Stay consistent in tone, visuals, and value.

3. Ignoring Competitor Moves
   Positioning must evolve based on the competition and market trends.

4. Overpromising in Positioning
   Don’t claim what you can’t deliver — it erodes trust.

Conclusion

Targeting and positioning are at the heart of effective marketing strategy. While targeting ensures you’re speaking to the right audience, positioning ensures your message is meaningful and distinct.

By understanding your market segments, defining your unique strengths, and communicating clearly, you can build a brand that not only attracts attention but also earns loyalty.

FAQs on Targeting and Positioning

Q1. What comes first: targeting or positioning?
A: Targeting comes first. You need to know who you’re speaking to before you can determine what message to deliver.

Q2. How often should businesses review their positioning strategy?
A: Regularly—especially when launching new products, facing new competitors, or responding to major market shifts.

Q3. Can one product have multiple positions?
A: It’s best to focus on one clear position per market segment. Conflicting messages can confuse consumers.

Q4. What tools help in targeting?
A: CRM systems, Google Analytics, customer surveys, social media insights, and segmentation software.

Q5. How is positioning different from branding?
A: Positioning is how you want the market to perceive your brand. Branding is the identity you create (logo, voice, visuals) to support that perception.

Q6. Can small businesses apply targeting and positioning strategies?
A: Absolutely. In fact, for small businesses with limited budgets, focusing on the right audience and clear messaging is even more critical.

By effectively targeting and positioning your product, you can create a strong brand identity and increase your chances of success in the marketplace.