1 / 36

Market Segmentation, Targeting and Positioning

Market Segmentation, Targeting and Positioning. chapter 5. Ch. 5 Objectives. Understand the concepts: market segmentation, and target marketing. positioning Learn the advantages and disadvantages of target marketing Discuss segmentation criteria, strategies, and seg. bases

chace
Download Presentation

Market Segmentation, Targeting and Positioning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Market Segmentation, Targeting and Positioning chapter 5

  2. Ch. 5 Objectives • Understand the concepts: market segmentation, and target marketing. positioning • Learn the advantages and disadvantages of target marketing • Discuss segmentation criteria, strategies, and seg. bases • Understand typical positioning strategies

  3. What is a market? • Individuals or organizations who: • Are willing, able, and capable of purchasing a firm’s product • Segmentation is critical because demand is often heterogeneous

  4. Market Segmentation/Targeting Market Segmentation is: • The process of dividing up the total market into distinct subsets of customers with common needs or characteristics Targeting is: • Selecting one or more segments that are appropriate

  5. Target Marketing • Advantages • Easier analysis of potential and actual consumers • Tailoring of products to market • Assessment of demand potential • Identify competing products • Increased sales effectiveness

  6. Target Marketing • Disadvantages • Increased marketing costs • More complex strategy to implement • Narrow segmentation can impact brand loyalty • Ethics and stereotyping issues • Can hinder a “Global” Brand Image • Faux segmentation may be viewed cynically • See Excedrin Migraine:

  7. Market Criteria • Segmentable markets are: • Heterogeneous • Measurable • Substantial • Actionable • Companies must be able to respond to preferences with an appropriate marketing mix • Accessible • Market must be efficiently reachable

  8. Segmentation Variables Demographic Segmentation Benefits-Sought Segmentation Geographic Segmentation Situation Segmentation Psychographic Segmentation Behavior/Usage Segmentation

  9. Demographics • Age • Income • Gender • Occupation • Education • Ethnicity • Family Life Cycle

  10. Segmentation Variables Demographic Segmentation Benefits-Sought Segmentation Geographic Segmentation Situation Segmentation Psychographic Segmentation Behavior/Usage Segmentation

  11. Geographics • By region of country • Micro-Beers do it • Campbell’s Soup does it • Frito-Lay does it:

  12. Segmenting Consumer Markets Demographic Segmentation Benefits-Sought Segmentation Geographic Segmentation Situation Segmentation Psychographic Segmentation Behavior/Usage Segmentation

  13. Psychographic Segmentation • Grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions)

  14. Segmenting Consumer Markets Demographic Segmentation Benefits-Sought Segmentation Geographic Segmentation Situation Segmentation Psychographic Segmentation Behavior/Usage Segmentation

  15. Benefits Sought • Find (or create) a key benefit that the product satisfies • Toothpaste Example:

  16. Segmenting Consumer Markets Demographic Segmentation Benefits-Sought Segmentation Geographic Segmentation Situation Segmentation Psychographic Segmentation Behavior/Usage Segmentation

  17. Situation Segmentation • Time of Year / Week, Event etc.

  18. Segmenting Consumer Markets Demographic Segmentation Benefits-Sought Segmentation Geographic Segmentation Situation Segmentation Psychographic Segmentation Behavior/Usage Segmentation

  19. Behavior/Usage Segmentation • Markets can be segmented by how often or how heavily consumers use a specific product • 80/20 Principle - 80% of revenue generated by 20% of customers Light Users 80% Heavy Users 20%

  20. Behavior/Usage Segmentation 80/20 true for many products • For Beer it’s 88% to 16% • Who are the heavy users?

  21. ProductPositioning

  22. How to Position Brands: Positioning: • “an image that a product projects in relation to competitive products and to the firm’s other products”

  23. 7 Ways to Position (differentiate) a product • Show MGD clip(s) • How is MGD differentiated? 1) Product Attribute • It has something that others do not have • Whatever attributes seem important to consumers • Key attribute may in reality be bogus...

  24. 7 Ways to Position (differentiate) a product • Show Kia clip 2) By Competitor • Show Similarity • Show Difference

  25. 7 Ways to Position (differentiate) a product 3) By Cultural Symbol (brand marks)

  26. TV Ad.

  27. 7 Ways to Position (differentiate) a product 4) By Price / Quality • Can be high or low (Generics) 5) By Product Class • Different type of product/service, but provides the same or better benefits • Example: New AmTrak Acela service to NY

  28. 6) By Use or Application Typically used to add uses of product and expands user base

  29. 7 Ways to Position (differentiate) a product 7) By Product User • Product is positioned for a particular group of users • List some potential target markets for cellular phones:

  30. Product Repositioning • What is meant by Repositioning? • Why might a company want to do it? (4X) • Know any products that have been repositioned?

  31. Mountain Dew(The most successful re-position in history) • What is MD’s current image/target market?

  32. Mountain Dew(The most successful re-position in history) • Remember MD’s initial positioning? (1968-Early 1970’s)

  33. Mountain Dew(The most successful re-position in history)

  34. Mountain Dew(The most successful re-position in history)

  35. A rather unusual example of segmentation/positioning...

More Related