Segmentation, targeting, and positioning
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The document discusses market segmentation, targeting, and positioning. It defines segmentation as dividing a market into distinct groups based on variables like geography, demographics, psychographics, and behavior. It also discusses segmenting consumer markets, business markets, and international markets. Targeting is evaluating segments and selecting specific segments to target based on factors like segment size and competition. Positioning is defining a product's place in the consumer's mind relative to competitors in terms of important attributes. The document provides examples of positioning statements.
Segmentation, targeting, and positioning
- 2. If you’re not thinking segments, you’re not thinking. To think segments means you have to think about what drives customers, customer groups, and the choices that are or might be available to them. —Levitt, Marketing Imagination
- 3. 7- 2 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographical segmentation Marketing mixes are customized geographically Demographic segmentation Psychographic segmentation Behavioral segmentation Using multiple segmentation variables Key Topics
- 4. 7- 3 Market Segmentation Geographic Segmentation Variables City or Metro Size Neighborhood Density Climate World Region or Country Country Region City
- 5. 7- 4 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographical segments Demographic segmentation Most popular type Demographics are closely related to needs, wants and usage rates Psychographic segmentation Behavioral segmentation Using multiple segmentation variables Key Topics
- 6. 7- 5 Market Segmentation Demographic Segmentation Variables Age Gender Family size Family life cycle Income Occupation Education Religion Nationality Ethnicity
- 7. 7- 6 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Lifestyle, social class, and personality-based segmentation Behavioral segmentation Using multiple segmentation variables Key Topics
- 8. 7- 7 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Behavioral segmentation Based on knowledge, attitude, use or response to a product Using multiple segmentation variables Key Topics
- 9. 7- 8 Behavioral Segmentation Variables Occasions: According to occasions buyer get the idea to buy or use the purchased item. Benefits sought: According to different benefits consumers seek from the product. User Status: Nonusers, ex-users, potential users, first- time users & regular users. User Rates: Light, medium & heavy product users. Loyalty Status: Loyalty to brands, stores & companies can be a base. Consumers can be somewhat loyal & completely loyal
- 10. 7- 9 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Behavioral segmentation Using multiple segmentation variables Key Topics
- 11. 7- 10 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Demographic segmentation Industry, company size, location Operating variables Technology, usage status, customer capabilities Situational factors Urgency, specific application, size of order Personal characteristics Buyer-seller similarity, attitudes toward risk, loyalty Key Topics
- 12. 7- 11 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segmentation Location or region Economic factors Population income or level of economic development Political and legal factors Type / stability of government, monetary regulations, amount of bureaucracy, etc. Cultural factors Language, religion, values, attitudes, customs, behavioral patterns Key Topics
- 13. 7- 12 Target Marketing Evaluating Market Segments Segment size and growth Segment structural attractiveness Level of competition Substitute products Power of buyers Powerful suppliers Company objectives and resources
- 14. 7- 13 Target Marketing Choosing a Target Marketing Strategy Requires Consideration of: Company resources The degree of product variability Product’s life-cycle stage Market variability Competitors’ marketing strategies Socially Responsible Target Marketing
- 15. 7- 14 Positioning Positioning: The place the product occupies in consumers’ minds relative to competing products. Typically defined by consumers on the basis of important attributes. Implanting the brand’s unique benefits & differentiation in customers mind Perceptual Positioning Maps
- 16. 7- 15 Positioning Criteria for Meaningful Differences Important Superior Distinctive Communicable AffordableProfitable
- 17. PROCESS OF MARKET SEGMENTATION 1. Identify Bases for Segmenting the Market 2. Develop Profiles of Resulting Segments 3. Develop Selection Criteria 4. Select Target Segment(s) 5. Develop Positioning for Each Target Segment 6. Develop Marketing Mix for Each Target Segment Market Positioning Market Targeting Market Segmentation
- 20. Segmented by Age
- 21. Positioning Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Positioning provides synergy among 4Ps. The place a product occupies in consumers’ minds relative to competing products.
- 22. Choosing a Positioning Strategy Step 1. Identifying Possible Competitive Advantages Step 2. Selecting the Right Competitive Advantage Step 3. Communicating and Delivering the Chosen Position
- 23. eBay’s positioning: No matter what “it” is, you can find “it” on eBay! Positioning Example
- 24. “To busy mobile professionals who need to always be in the loop, Blackberry is a wireless connectivity solution that allows you to stay connected to people and resources while on the go more easily and reliably than the competing technologies.” Positioning Example