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Segmentation, Targeting, and Positioning
The document details the process of segmentation, targeting, and positioning in marketing, highlighting key strategies for effectively reaching distinct customer groups. It outlines the three steps of target marketing, which include market segmentation, target marketing, and market positioning, along with the various bases for segmenting both consumer and business markets. Additionally, the document discusses how companies can position products for competitive advantage and the importance of developing clear positioning statements and value propositions.
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Segmentation, Targeting, and Positioning
- 1. Segmentation, Targeting, andPositioning Building the Right Relationships with the Right Customers Chapter 7
- 2. Learning Goals Learnthe three steps of target marketing, market segmentation, target marketing, and market positioning Understand the major bases for segmenting consumer and business marketing strategy Know how companies identify attractive market segments and choose target marketing strategy Realize how companies position their products for maximum competitive advantage in the marketplace
- 3. Sells multiple brandswithin the same product category for a variety of products Brands feature a different mix of benefits and appeal to different segments Has also identified different niches within certain segments Product modifications are useful: Tide offers seven different product formulations to serve different niches’ needs Case Study Procter & Gamble
- 4. Steps in marketsegmentation, targeting and positioning Market Segmentation Identify bases for segmenting the market Develop segment profiles Target Marketing Develop measure of segment attractiveness Select target segments Market Positioning Develop positioning for target segments Develop a marketing mix for each segment Goal 1: Learn the three steps of target marketing
- 5. Definition Market Segmentation:Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. Goal 2: Understand the major bases for segmentation
- 6. Segmenting Consumer MarketsGeographical segmentation Demographic segmentation Most popular segmentation Psychographic segmentation Lifestyle, social class, and personality-based segmentation Behavioral segmentation Goal 2: Understand the major bases for segmentation
- 7. World region or country U.S. region State City Neighborhood City or metro size Density Climate Geographic Segmentation Variables Goal 2: Understand the major bases for segmentation
- 8. Age Gender Familysize Family life cycle Income Occupation Education Religion Race Generation Nationality Demographic Segmentation Variables Goal 2: Understand the major bases for segmentation
- 9. Occasions Benefits UserStatus Attitude Toward the Product User Rates Loyalty Status Readiness Stage Behavioral Segmentation Variables Goal 2: Understand the major bases for segmentation
- 10. Segmenting Business MarketsDemographic segmentation Industry, company size, location Operating variables Technology, usage status, customer capabilities Purchasing approaches Situational factors Urgency, specific application, size of order Personal characteristics Buyer-seller similarity, attitudes toward risk, loyalty Goal 2: Understand the major bases for segmentation
- 11. Segmenting International MarketsGeographic 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 Goal 2: Understand the major bases for segmentation
- 12. Requirements for EffectiveSegmentation Measurable Size, purchasing power, and profile of segment Accessible Can be reached and served Substantial Large and profitable enough to serve Differentiable Respond differently Actionable Effective programs can be developed Goal 2: Understand the major bases for segmentation
- 13. Target Marketing TargetMarket Consists of a set of buyers who share common needs or characteristics that the company decides to serve Goal 3: Know how companies identify and target attractive segments
- 14. Target Marketing EvaluatingMarket Segments Segment size and growth Segment structural attractiveness Level of competition Substitute products Power of buyers Powerful suppliers Company objectives and resources Goal 3: Know how companies identify and target attractive segments
- 15. Target Marketing SelectingTarget Market Segments Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micromarketing (local or individual) Goal 3: Know how companies identify and target attractive segments
- 16. Choosing a TargetMarketing Strategy Considerations include: Company resources The degree of product variability Product’s life-cycle stage Market variability Competitors’ marketing strategies Goal 3: Know how companies identify and target attractive segments
- 17. Target Marketing SociallyResponsible Targeting Some segments, especially children, are at special risk Many potential abuses on the Internet, including fraud Internet shoppers Controversy occurs when the methods used are questionable Goal 3: Know how companies identify and target attractive segments
- 18. Positioning Positioning: Theplace the product occupies in consumers’ minds relative to competing products. Typically defined by consumers on the basis of important attributes. Involves implanting the brand’s unique benefits and differentiation in the customer’s mind. Positioning maps that plot perceptions of brands are commonly used. Goal 4: Realize how companies position their products
- 19. Identifying possible competitiveadvantages Choosing the right competitive advantage Choosing a positioning strategy Differentiation can be based on Products Services Channels People Image Choosing a Positioning Strategy Topics Goal 4: Realize how companies position their products
- 20. Market Segmentation Howmany differences to promote? Unique selling proposition Several benefits Which differences to promote? Criteria include: Important Distinctive Superior Communicable Preemptive Affordable Profitable Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy Topics Goal 4: Realize how companies position their products
- 21. Market Segmentation Valuepropositions represent the full positioning of the brand Possible value propositions: More for More More for the Same More for Less The Same for Less Less for Much Less Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy Topics Goal 4: Realize how companies position their products
- 22. Developing a Positioning Statement Positioning statements summarize the company or brand positioning EXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference) Goal 4: Realize how companies position their products
- 23. Communicating the PositioningCompanies must be certain to DELIVER their value propositions. Positions must be monitored and adapted over time. Goal 4: Realize how companies position their products