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Principles of Marketing
Module 9
Principles of Marketing
Grade 11 :Module 9
First Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form
without written permission from the copyright owners.

Development Team of the Module

Author: Ma.Paz F. Garcia, MT-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II


Target

SELECTING TARGET MARKET

For a business, the choice of the target market is a very important decision as it
takes considerable effort and determination to execute a suitable and targeted
marketing mix. The identification of the target market is a crucial part of marketing
plan and requires considerable company-wide research, debate and evaluation.

POSITIONING

What is the best way to get people understand what your product is all about?
By keeping its messaging as simple as possible.

Think about the products that you normally consume: the fast-food outlets that
you frequently visit, the sneakers you wear, the soda you drink, and even the apps in
your tablet or smartphone. Each of these products occupies some sort of clear, personal
definition in your mind.

Think about all the products that you do not normally pay any attention to.
Chances are, most of these you may not even know much about it. At worst, they could
even occupy a negative zone in your mind.

Positioning is a marketing term that defines where your business, product or


services stands in relation to competition in the market place in the mind of the
customer.

Brand positioning is closely connected to the emphasis on the consumer segme


nt. It involves the development of a special, consistent and accepted consumer
understanding of the supply and image of a brand. A product or service can be placed
on the basis of an attitude or advantage, usage or application, customer, category,
price or quality level.

It markets a commodity at particular prices for particular consumer segments a


nd product needs. In certain cases, the same product can be placed.

In the previous module, you learned the conceptual information about market
segmentation wherein it covers the different types – Market According to Types of
Institution (Consumer Markets, Organizational Markets and International Markets) and
Market According to Forms (Primary Markets and Secondary Markets). It also tackles
the process of segmenting markets, bases for market segmentation and others.
This module covers the process of selecting appropriate target markets, the arts
and science of positioning – types of positioning strategies and positioning map. This
will help learners to understand how to effectively communicate a strong, clear and
concise message for a particular product. It will focus on particular attention to the
challenge of convincing the market about what makes it different from its various
competitors.

At the end of the module, you are expected to:

1. Select the appropriate target market and its positioning. (ABM-PM11-le-i-15.


a. Define what is target market and positioning.
b. Describe the criteria in selecting the target markets

Before going on, check how much you know about this topic. Answer the pretest

What Do You Already Know?

PRE-TEST

Directions: Read and analyze the conceptual information about market positioning.
Express your thoughts by writing AGREE or DISAGREE on your answer
sheet.

____________1. The objective of market positioning is to establish the image or identity


of a brand or product.

____________2. An effective market positioning strategy is identifying current market


position.

____________3. A product position is a space that a product owns in the minds of the
consumers.
____________4. Market positioning is non-essential part of marketing strategy.

____________5. It is important to remember that the market position is defined by


businesses.

____________6. A useful framework for analyzing market positioning is a location map.


____________7. Market positioning must be maintained over the life of the brand or
product.

____________8. A car maker may position itself as a luxury status symbol is an example
of effective market positioning.

____________9. Repositioning a brand or product means altering its place it the minds of
the consumer.

____________10. Consumers expect more from a basic product.

____________11. Positioning map encourages use of market research.

____________12. Customers choose products based on their perception of a product’s


value proposition.

____________13. Just because there is a “gap” doesn’t mean there is demand.

____________14. There’s no need to compare and contrast differences between your


company and competitors to identify opportunities.

____________15. Low price and low volume can be a possible dimension for the axes of
positioning map
Lesson Selecting Target Market
9 and Positioning

Jumpstart

In Module 8, you have learned the conceptual information about market


segmentation. It covers the different types of market segmentation. It deepens the
learner’s knowledge on how marketers personalized their marketing campaigns.

Activity 1: FILL ME IN…

Direction: Do what is being asked.

A. Give three (3) examples of popular products that you always bought at
supermarket.
Example 1: _______________________________
Example 2: _______________________________
Example 3: _______________________________

Cite some possible reasons why the chosen products have managed to
communicate very clear benefits?

a. ____________________________________________________________________________
b. ____________________________________________________________________________
c. ____________________________________________________________________________
d. ____________________________________________________________________________
e. ____________________________________________________________________________

B. Think of two (2) examples of “confusing” products- products that you cannot
classify or understand what are their uses. Try to explain the source of your
confusion.

Product 1:

Product 2:
Discover

Selecting Target Markets

Target market represents a group of individuals who have similar needs,


perceptions and interests. They show inclination towards similar brands and respond
equally to market fluctuations.

Individuals who think on the same lines and have similar preferences from the
target audience. Target market includes individuals who have almost similar
expectations from the organizations or marketers.

The diagram below illustrates how target market is positioned.

The selection of target markets is a marketing activity that should be planned


carefully. The consequence of picking the wrong segments may lead to lost opportunities
and waste of company resources.

To determine which segments are right for the firm, the following criteria must
be considered:

1. Size. It must be broad enough to be worth serving when selecting a business


segment. However, size does not apply to the number of prospective buyers, but
to the amount of sales that can be produced. In evaluating the size of the market,
the following questions should be considered. How big is the market? Will it be
worth pursuing?

2. Expected Growth. There are markets that are not lucrative at the moment, but
some of these are possibly expected to develop in the future. Even if the market
is small, it could be profitable if there is evidence that it is going to expand.

3. Competitive position. The existence of competition in the considered segment


decreases the probability of the business making profits successfully. It is
important to thoroughly analyze the intensity of the competition. Low competition
equals a market that is desirable.

4. Cost of reaching the segment. The business must quickly hit a consumer
segment that is identified. If marketing campaigns are too costly to accomplish
this, revenue may be jeopardized.

5. Compatibility with the firm’s objectives and resources. The segment must
not be chosen if the company does not have adequate capital to serve a
prospective segment. How compatible is the demand with the company’s
objectives?

What is Market Positioning?

Market Positioning refers to the ability to influence consumer perception


regarding a brand or product relative to competitors. The objective of market positioning
is to establish the image or identity of a brand or product so that consumers perceive it
in a certain way.

Market positioning is a critically important part of marketing strategy since it


determines to a large extent what customers perceive is being offered to them.

Businesses use marketing to create value for customers by making two key
decisions:

Decision 1: Choose which customers to serve

This involves (a) Market segmentation (analyzing the different parts of a market);
(b) Targeting (deciding with market segments to enter)

Decision 2: Choose how to serve those customers.

This also involves two important parts of marketing strategy: (a) Product
differentiation (what makes it difference from the competition) ; (b) Market positioning
(how customers perceive the product).

Having chosen which segments to target – a business needs to decide how to


compete in those segments. Marketing people call this choice the value proposition.
What position will be taken?

It is important to remember that the market position (or value proposition) is


defined by customers – the place a product occupies in customer minds relative to
competing products.
Positioning the Product

Product positioning is a marketing strategy designed to better display goods to


identify target markets in the best possible way. Symbols and manipulation of messages,
including screens and packaging, are involved.

The location of a product was referred to as the Special Selling Preposition or USP
in the early days of publicity. It’s basically the answer to the question, ”What makes
your product different, then? In fact, advertisers were the individuals empowered to
determine the USPs for the goods they were promoting.

In their book entitled “Positioning” in 1970, marketers Al Ries and Jack Trout
coined the word “positioning”. They argued that there was a need for goods to
concentrate on one message and one message alone. For instance, only toothpaste and
nothing more should be associated with Colgate, while only germ-fighting soap and
nothing else should eb associated with Safeguard.

Example of Product Position:

▪ Crispy fried chicken has always been associated with Max’s Restaurant. It is not
the only fried chicken restaurant (KFC is the leading fried chicken chain), but it
holds a distinct message, especially among Filipino tradition’s senior market
segments, family bonding, and a unique form of fried chicken experience.

Product’s position should not be confused with its slogan or catchphrase.


Catchphrases, such as “Your’e in good hands” for Metrobank, or “Hahanap-hanapin
mo” for Mang Inasal, “Bida ang Saya” for Jollibee, “Gamot Ay Laging Bago” for Mercury
Drugstore, are meant to make people feel good about the product. But these are not
necessarily the product position statements.

Points of Difference and Point of Parity

Points of Difference or PODs refer to the attributes or benefits that the market
associates primarily with a particular brand, to the point that the market believes that
no other brands offer these attributes or benefits to the same degree.

Points of Parity or POPs, are market expectations about what products in a


particular products category should be or should have.
GMA NETWORK Points of Parity ABS-CBN NETWORK

Quick Service Service Strategy Quick Service

Kapuso Network Network ID Station Kapamilya Network

GMA Kapuso Flagship – Foundation Lingkod Kapamilya


Foundation

24 Oras Flagship-News TV Patrol

Eat Bulaga Flagship-Noontime Show It’s Showtime

Figure 1
Points of Parity between GMA Network and ABS-CBN Network

There are two broad categories of market position: cost leadership and
differentiation. Cost leadership and differentiation market positioning strategies are
applicable to any business and any industry. A business can choose to position itself
using a cost leader strategy or a differentiation business strategy.

Cost Leader Strategy

A company using a cost leader strategy attempts to position itself in the minds of
the consumers as a company that provides products the consumers want at a price that
is lower than competing products available in the marketplace. Consumers expect basic
products with no bells and whistles from a company using a cost leader strategy.
Instead, consumers just expect the products to meet their needs and nothing more or
less.

Differentiation Business Strategy

A company using a differentiation business strategy attempts to position itself in


the minds of the consumers as a company that provides unique products that
consumers will pay more for because they cannot find comparable products or product
features anywhere else in the marketplace. Consumers expect more from a differentiated
product and therefore are willing to pay a premium for a differentiated product. This is
true as long as the unique features of the product add some value to the product that
makes it more valuable to the consumer, whether a functional feature or an aspect of
image or prestige that enhances the perception of the product.
A Perceptual Map in Market Positioning

The word ‘perceptual’ comes from the word ‘perception’, which refers to the
consumers’ understanding of the competing products and their associated attributes.

A perceptual map is of the visual technique designed to show how the


average target market consumer understands the positioning of the competing products
in the marketplace. It is a tool that attempts to map the consumer’s perceptions and
understandings in a diagram.

A perceptual map represents customer perceptions and preferences by means of


a visual display (Ferrel & Hartline, 2008).

Perceptual maps measure the way products are positioned in the minds of the
consumers and show these perceptions on a graph whose axes are formed by product
attributes (Kardes, Cronley, & Cline 2011).

Some possible dimensions for the axes of a perceptual map includes:

LOW PRICE HIGH PICE

BASIC QUALITY HIGH QUALITY

LOW VOLUME HIGH VOLUME

NECESSITY LUXURY

LIGHT HEAVY

SIMPLE COMPLEX

UNHEALTHY HEALTHY

LOW – TECH HI – TECH


An example of consumers’ perception on the level of sugar and caffeine of soft
drinks in the manufacturing industry are mapped below:

Why use a perceptual map?

• To understand how brand is perceived in the marketplace.


• To track how the perception of our brand is evolving over time, with new products and
campaigns.
• To track the perception of competitor products and measure the impact of their
marketing strategies.
• To identify positioning preferences for different market segments.
• To identify possible gaps and opportunities for new products.
• To identify possible opportunities for repositioning our brand.

“To Stay in the Market is to Stay in the Customer’s Mind”

(Dizon C. 2020)
Explore
Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Activity 2: POSITIONING

Read and analyze the questions well. Explain your point of view.

Now that we are experiencing the effect of the COVID-19 pandemic, how would
you position your town as a local tourist destination? What would your unique
selling point for the municipality? In your opinion, what kinds of travelers will
be most attracted to this unique selling point?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Rubric:

Criteria Excellent 10 Good 7 Fair 5 Poor 3


Clarity of All the thoughts Most of the Some thoughts The thought
thoughts were very clear. thoughts were were clear. can’t be
clear understood.
Reasoning The stand was The stand is The stand is not The stand is
well reasoned somewhat so reasonable. completely
out. reasonable. unreasonable.
Activity 3: POINTS OF PARITY

Direction: Compare and contrast the two leading fastfood chains in our province.
Write the answer on the space provided inside the box.

Mc Donald’s Points of Parity Jollibee

__________________ Service Strategy __________________

__________________ Flagship Burger __________________

__________________ Flagship Chicken __________________

__________________ Mascot __________________

__________________ Toys for the Kids __________________

Activity 4: MATCH ME….

Directions: Presented in column A are conceptual information about marketing,


find the best match provided in column B.

COLUMN A COLUMN B
1. Analyzing the different parts of
the market a. Light
2. How customer perceived the
product b. Cost Leadership
3. Low volume c. Perceptual Map
4. Heavy
d. Repositioning
5. Deciding where market MARKET
segments to enter e. Market
6. Offering products with price
f. Healthy
lower than the competing
products g. Targeting
7. Unique products
8. Altering its place in consumer’s h. High Volume
mind i. Differentiation
9. Use to show consumers
perception
10. Unhealthy
Deepen
LET US APPLY WHAT YOU HAVE LEARNED

A. Directions: The following sets of products belong to the same positioning


category, identify the product that does not belong to the same dimensions.
Write

1. Hapee 2. Tide bar 3. fruit shake


Colgate Palmolive soap milk tea
Green cross Surf bar fruit juice

4. Bear brand 5. Palmolive 6. Bygon


Anchor Sunsilk Lysol
Ensure
Creamsilk
alcohol

7. Likas Papaya soap 8. 555 sardines 9. yogurt

Skin white soap Ligo sardines Yakult

Nivea Nescafe soda

green cross

10. Toyota

Suzuki

Asahi
B. ARRANGE ME PLEASE….

Directions: Rearrange the letters inside the box to form a meaningful word.
(Hint: words pertain to market positioning)

NNIIIOOPSTG NIOTAITRENEFFDI

1. _________________________ 2._________________________________

GESNEMATIONT SSEENNUUQI

3. ____________________________ 4._________________________________

ERPPCEULAT YGETARTS

5. _____________________________ 6._________________________________

SUBISSEN ERGNOPINISOIT

7. _____________________________ 8._________________________________

DNARB SUCOTREM

9. _____________________________ 10._________________________________
Gauge

Direction:

Acrostic Poem

Follow these steps to write an eleven-line acrostic poem explaining


positioning. Write the term POSITIONING vertically along the left side of a
notebook page. Begin each line with a word that starts with the appropriate
letter.
Each line must help answer questions concerning market
positioning.
Include the following terms somewhere in your acrostic: cost leader,
differentiation, targeting, segmentation. Consider the rubrics below in
crafting your poem.
ACROSTIC POEM CRITERIA

ACROSTIC 3 Pts 4 Pts 5 Pts


POEM
The poem does not The poem has The poem has a
have a clear message but 1-2 clear message.
Structure /
message. lines do not relate Each line relates
Focus
More than 2 lines to the topic to the topic of the
do not relate to the poem.
topic.
The poem does not The poem uses one The poem
contain poetic poetic element. contains more
Creativity elements (lines, than one poetic
rhyme, imagery). element.

The poem contains The poem The poem does


3 or more contains 1-2 not contain any
incorrect spelling, incorrect incorrect spelling,
Mechanics
grammatical spelling, grammatical
errors. grammatical errors.
errors.
B. MATCH ME UP….

Direction: Match the following definitions to the correct market positioning


terms provided inside the word pool.

1. It determines to a large extent


A. MARKET POSITIOING
what customers perceived to what
being offered to them

2. A useful framework for analyzing B. REPOSITIONING


market positioning

3. Decisions on what market C. TARGETING


segments to enter

4. Product uniqueness D. PERCEPTUAL MAP

5. Essentially changing the


brand’s or product’s image or
E. DIFFERENTIATION

identity.
References
Ilano, A.B. Principles Of Marketing. Reprint, Philippines: Rex Book Store, 2017.

Medina, R.G. Principles of Marketing. Reprint, Philippines: Rex Bookstore, 2008

Alcoran, alaric brian. Principles Of Marketing. Reprint, Philippines: Bookline Publishing Corporation, 2018.

Google.Com, 2020.
https://www.google.com/search?q=rubrics+for+positioning+map&source=lnms&tbm=isch&sa=X&ved=2a
hUKEwiY5fysprrqAhWLad4KHYkWDhYQ_AUoAXoECAwQAw&cshid=1594096114522792&biw=780&bih=
756#imgrc=PFcDUCyxrAu-vM.

"Market Positioning - Creating An Effective Positioning Strategy". Corporate Finance Institute, 2020.
https://corporatefinanceinstitute.com/resources/knowledge/strategy/market-positioning/.

"Market Positioning | Business | Tutor2u". Tutor2u, 2020.


https://www.tutor2u.net/business/reference/market-positioning.

Wilkinson, Jim. "Market Positioning Definition | Positioning A Brand | Repositioning". The Strategic CFO,
2020. https://strategiccfo.com/market-positioning/.

https://www.managementstudyguide.com/targetmarket

https://www. marketing91.com/target-market-selection

https://www.segmentationstudyguide.com/understanding-target-markets/target-market-selection/

“Niche Marketing,” BusinessDictionary.com, http://www.businessdictionary.com/definition/niche-


marketing.html (accessed December 2, 2009).

https://open.lib.umn.edu/principlesmarketing/chapter/5-3-selecting-target-markets-and-target-market-
strategies/

Boone, Louis E., and David L. Kurtz. Contemporary Marketing. Thomson South-Western, 2006.
Nunes, Paul, and Brian Johnson. Mass Affluence: Seven New Rules of Marketing to Today's Consumer.
Accenture, 2004.
Ries, Al, and Jack Trout. Positioning: The Battle for Your Mind, 20th Anniversary Edition. McGraw-Hill,
2001.
https://www.segmentationstudyguide.com/understanding-perceptual maps/perceptual-maps/
1. Positioning 1. green cross
2. Differentiation 2. Palmolive soap
3. Segmentation 3. Milk tea
4. Uniqueness 4. Bear brand
5. Perceptual 5. Palmolive 1. f 6. c
6. Strategy 6. Alcohol 2. b 7. j
7. Business 7. Nivea 3. I 8. e
8. Repositioning 8. Nescafe 4. a 9. d
9. Brand 9. Soda 5. h 10. g
10. Customer 10. Asahi
have learned
B. Arrange Me A. Apply what you Match Me….
Deepen Activity 4:
Mc Donald’s
1. Agree
Quick Service Strategy
2. Agree
Big Mac 3. Agree
4. Disagree
Chicken McDo Answers may vary
5. Disagree
Ronald Mc. Donald
6. Disagree
Happy Meal 7. Agree
8. Agree
Jollibee
Positioning 9. Agree
Quick Service Strategy
10. Disagree
Activity 2:
Champ 11. Agree
Answers may vary 12. Agree
Chicken Joy
13. Agree
Jollibee Mascot
14. Disagree
Promo Meals 15. Agree
Points of Parity Jumpstart
Activity 3: Activity 1: Pre-Test
Answer Key

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