MGT-253 Principles of Marketing

Week 4 of 17MGT-253Women University Multan

Week 4: Customer-Driven Strategy (STP) — Part 2

Learning objectives

  • Compare aggregation, single-segment, and multiple-segment targeting.
  • Write a clear positioning idea and recognize repositioning triggers.
  • Discuss a repositioning case using a structured frame.

After segmentation, firms choose which segments to serve (targeting) and how to occupy a distinctive place in the customer's mind (positioning).

Target market strategies

  • Aggregation (undifferentiated / mass marketing) — One offer for the whole market. Efficient when needs are similar and scale matters; risky when competitors niche better.
  • Single-segment (concentrated / niche) — Deep focus on one segment. Attractive for smaller firms; vulnerable if the niche shrinks.
  • Multiple-segment (differentiated) — Separate offers/mixes for several segments. Can raise sales and share but increases cost and complexity.

Also watch for micromarketing (local or individual) as digital capability grows.

Positioning

Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. A practical template:

For [target], Brand X is the [frame of reference] that [point of difference] because [reason to believe].

Points of difference can be product attributes, benefits, usage occasions, user category, or against a competitor. Avoid positions that are underpositioned (too vague), overpositioned (too narrow), confused, or doubtful.

Repositioning

Markets change: new rivals, shifting tastes, brand aging, crises. Repositioning adjusts the brand's place in the mind — sometimes with product changes, sometimes mainly with communication. Classroom discussion should cover: diagnosis of current position, desired position, barriers, and metrics of success.

Pakistan example A tea brand long associated with everyday chai might reposition toward premium hospitality for urban households — requiring pack design, price tier, and message changes, not only a slogan.
Case discussion tip Use: Situation → Options → Criteria → Recommendation → Risks. Bring evidence from customer insight, not only opinions.

Key terms

Target market
A set of buyers sharing needs that a company decides to serve.
Positioning
Occupying a distinctive place in target customers' minds.
Differentiated marketing
Targeting several segments with separate offers.
Repositioning
Changing a brand's place in consumers' minds.

Self-check

  1. When is single-segment targeting wiser than multiple-segment targeting?
  2. Write a one-sentence positioning statement for a campus café.
  3. List three signs that a brand is underpositioned.
  4. What evidence would justify a repositioning project?