- 1. Segmentation, Targeting, and PositioningBuilding the Right
Relationships with the Right Customers
2. Definition
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- Dividing a market into distinct groups with distinct needs,
characteristics, or behavior who might require separate products or
marketing mixes.
7 -Goal 2:Understand the major bases for segmentation 3.
Segmenting Consumer Markets
- Geographical segmentation
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- Most popular segmentation
- Psychographic segmentation
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- Lifestyle, social class, and personality-based
segmentation
7 -Goal 2:Understand the major bases for segmentation 4.
7 -Geographic SegmentationVariables Goal 2:Understand the major
bases for segmentation 5.
7 -Demographic Segmentation Variables Goal 2:Understand the
major bases for segmentation
6. Psychographic segmentation Variables
7 - 7.
7 -BehavioralSegmentation Variables Goal 2:Understand the major
bases for segmentation 8. Segmenting Business Markets
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- Industry, company size, location
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- Technology, usage status, customer capabilities
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- Urgency, specific application, size of order
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- Buyer-seller similarity, attitudes toward risk, loyalty
7 -Goal 2:Understand the major bases for segmentation 9.
Segmenting International Markets
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- Population income or level of economic development
- Political and legal factors
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- Type / stability of government, monetary regulations, amount of
bureaucracy, etc.
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- Language, religion, values, attitudes, customs, behavioral
patterns
7 -Goal 2:Understand the major bases for segmentation 10.
Requirements for Effective Segmentation
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- Size, purchasing power, and profile of segment
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- Can be reached and served
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- Large and profitable enough to serve
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- Effective programs can be developed
7 -Goal 2:Understand the major bases for segmentation 11. Target
Marketing
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- Consists of a set of buyers who share common needs or
characteristics that the company decides to serve
7 -Goal 3:Know how companies identify and target attractive
segments 12. Target Marketing
- Evaluating Market Segments
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- Segment structural attractiveness
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- Company objectives and resources
7 -Goal 3:Know how companies identify and target attractive
segments 13. Target Marketing
- Selecting Target Market Segments
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- Undifferentiated (mass) marketing
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- Differentiated (segmented) marketing
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- Concentrated (niche) marketing
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- Micromarketing (local or individual)
7 -Goal 3:Know how companies identify and target attractive
segments 14. Choosing a Target Marketing Strategy
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- The degree of product variability
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- Products life-cycle stage
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- Competitors marketing strategies
7 -Goal 3:Know how companies identify and target attractive
segments 15. Target Marketing
- Socially Responsible Targeting
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- Some segments, especially children, are at special risk
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- Many potential abuses on the Internet, including fraud Internet
shoppers
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- Controversy occurs when the methods used are questionable
7 -Goal 3:Know how companies identify and target attractive
segments 16. Positioning
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- The place the product occupies in consumers minds relative to
competing products.
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- Typically defined by consumers on the basis of important
attributes.
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- Involves implanting the brands unique benefits and
differentiation in the customers mind.
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- Positioning maps that plot perceptions of brands are commonly
used.
7 -Goal 4:Realize how companies position their products 17.
- Identifying possible competitive advantages
- Choosing the right competitive advantage
- Choosing a positioning strategy
- Differentiation can be based on
Choosing a Positioning Strategy 7 -TopicsGoal 4:Realize how
companies position their products 18. Market Segmentation
- How many differences to promote?
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- Unique selling proposition
- Which differences to promote?Criteria include:
- Identifying possible competitive advantages
- Choosing the right competitive advantage
- Choosing a positioning strategy
7 -TopicsGoal 4:Realize how companies position their products
19. Market Segmentation
- Value propositions represent the full positioning of the
brand
- Possible value propositions:
- Identifying possible competitive advantages
- Choosing the right competitive advantage
- Choosing a positioning strategy
7 -TopicsGoal 4:Realize how companies position their products
20. Developing aPositioning Statement
- Positioning statements summarize the company or brand
positioning
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- EXAMPLE: To (target segment and need) our (brand) is (concept)
that (point-of-difference)
7 -Goal 4:Realize how companies position their products 21.
Communicating the Positioning
- Companies must be certain to DELIVER their value
propositions.
- Positions must be monitored and adapted over time.
7 -Goal 4:Realize how companies position their products