POM_Module 8_Market Segmentation and Positioning
- 1. Pre-assessment: Directions: Write TRUE if the statement is correct or FALSE if incorrect. ___________ 1. The perception of a property by its guests or potential guests is known as the property’s market segmentation. ___________ 2. A positioning statement effectively communicates the property’s advantages to its target markets. ___________ 3. Positioning is about advertising only. ___________ 4. Discovering the needs and wants of each segment is part of developing a positioning strategy. ___________5. Once the property has determined its guest mix, it is considered wasteful to review it.
- 2. S.W.O.T. Analysis Tool S - Strengths W - Weaknesses O - Opportunities T - Threats
- 3. - Use the S.W.O.T Analysis Tool to review of the Social, Technological, Economic, and Political issues affecting your firm’s ability to capitalize on a market.
- 4. Basic types of Market Opportunities:
- 6. The question becomes: which opportunities should be evaluated first? - The answer falls out of a sound analysis of existing markets and potential new markets
- 7. Market Segmentation Best Practices - Market segmentation is a two-step process of: naming broad product markets, and segmenting those markets in order to select target markets. Use Demand Metric’s MARKET SEGMENTATION TOOL to help you with market sizing and analysis, and to develop customer profiles.
- 8. Market Segmentation Best Practices 1. Defining Generic and Product Markets. A market is a group of potential customers who have similar needs and are willing to purchase goods or services to satisfy those needs. Good marketers focus on the customer and develop marketing mixes for very specific target markets. On the other hand, poor marketers focus on their products when defining markets, leading to missed opportunities and questionable customer satisfaction.
- 9. Market Segmentation Best Practices Generic Market - is a market of customers with generally similar needs, which organizations satisfy in a variety of ways. - An example of a generic market would be the transportation market for a city; buses, trains, cars, bicycles, and walking, are all methods of getting around town.
- 10. Market Segmentation Best Practices Product market - is a market of customers with very similar needs. - An example of a product market would be for laptop computers, where customers have the choice between products from Microsoft, Dell, Apple, Fujitsu, etc.
- 11. When defining your product market, there are four important aspects: What - Product Type To Meet - Customer Needs Who - Customer Segments Where - Geographic Region - An example of a product market might be “marketing advisory services for mid-sized enterprises in North America with limited budgets.” Once you have defined your product markets, you are ready to continue the segmentation process to identify potential target markets.
- 12. Market Segmentation Best Practices 2. Understand Common Market Segment Dimensions - There are common market segment dimensions for consumer and B2B markets. Following are two lists containing sample dimensions that can be used to slice and dice your consumer or B2B product markets. Be very careful when selecting your dimensions, as these parameters will form the basis for defining your target markets.
- 16. Market Segmentation Best Practices 3. Group Customers into Homogeneous Micro Segments. -In this stage of the segmentation process, your goal is the find customers who have similar needs that will respond to a marketing mix in a predictable manner
- 17. Following are 4 criteria that strong market segments have in common:
- 18. Once you have established distinct market segments based on various dimensions, you are ready to start targeting your potential customers. The next section of the report provides advice pertaining the effective target marketing techniques. Target Marketing Following are 5 criteria that indicate whether you have selected a viable target market: size, expected growth, competitive position, cost to reach, and compatibility. Size - how large is this target market? Worth pursuing? Expected Growth - even if the market is small, it may be profitable if there are indications that it will grow. Competitive Position - low competition equals attractive market. Cost to Reach - is this market accessible with our tactics? Compatibility - how aligned is this market to our goals
- 19. Positioning and Competitive Differentiation The final stage in developing a strategic marketing plan is to analyze the target market to identify where competitors are positioned, and which attributes are most important when customers are making a purchase. To understand your current market position, conduct a simple market research project to identify which product- class attributes are most important, which brands are perceived to best deliver each attribute, and where product improvements need to be made to improve customer satisfaction? There are two basic strategies when it comes to positioning: head-to- head and differentiation.