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Chapter 6 Segmentation, Targeting and Positioning REVIEW Instructor Shan Garib

Chapter 6 Segmentation, Targeting and Positioning REVIEW Instructor Shan Garib. LO 2. Forms of Market Segmentation. Mass marketing Segment marketing Niche marketing Individualized marketing. 2. LO 2. Mass Marketing. Rarely seen today Competitiveness of the market

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Chapter 6 Segmentation, Targeting and Positioning REVIEW Instructor Shan Garib

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  1. Chapter 6Segmentation, Targeting and PositioningREVIEWInstructor Shan Garib

  2. LO 2 Forms of Market Segmentation • Mass marketing • Segment marketing • Niche marketing • Individualized marketing 2

  3. LO 2 Mass Marketing • Rarely seen today • Competitiveness of the market • Need to specifically address consumer needs

  4. LO 2 Segment Marketing • Most common form of segmentation followed by large companies • Meeting the needs of target groups (chosen segments) with specific products and marketing programs 4

  5. LO 2 Niche Marketing • Concentrate on a smaller area to be successful • Kashi targets ‘health enthusiasts’ 5

  6. LO 2 Individualized Marketing • Through the use of sophisticated tracking and statistical models, behaviour is predicted • Individual offers are developed • Product selection and products can be customized

  7. LO 3 10 Steps in Market Segmentation 7

  8. LO 3 Step 1: Review Company Objectives • Review strategic company objectives • Clear • Quantifiable

  9. LO 3 Step 2: Identify objectives Identify specific business unit objectives.

  10. LO 3 Step 3: Identify Consumer Needs • Identify consumer/customer needs and common characteristics in the market. Common Interests Evolving Trends Consumer Perspective Market Shifts Consideration of Other Countries 10

  11. LO 3 Step 4: Cluster Common Consumer Variables • Cluster common consumer/customer variables to create meaningful market segments. • Clusters = Segments in the market • Very important: Review clusters from a consumer perspective • Cereal: High fibre vs. health conscious 11

  12. LO 3 Step 4: Cluster Common Consumer Variables 12

  13. LO 3 Step 5: Conduct a SWOT Analysis • Conduct SWOT analyses on the segments to determine strengths, weaknesses, opportunities, and threats. Opportunities and the ability of the company to compete SWOT 13

  14. LO 3 Step 6: Identify Best Segment • Identify the segment that best meets strategic company objectives. • Opportunities and threats relative to company objectives • Uncovers opportunity segments

  15. LO 3 Step 7: Marketing Programs & Budget • Identify marketing programs and budget requirements needed for this segment. • Recommended marketing program • Full financial evaluation

  16. LO 3 Step 8: Sales Forecast • Create a sales forecast for this segment. • Estimated sales potential 16

  17. LO 3 Step 9: Profit and Loss Analysis • Conduct a profit-and-loss financial analysis for this segment. • Determination of the financial viability • Ability to make a rational decision 17

  18. LO 3 10. Measure • Check financial forecasts against specific business unit objectives.

  19. LO 4 Target Market Profiles • Created by considering: • Geographics • Demographics • Psychographics • Behaviouristics

  20. LO 4 Target Market Profiles Figure 6-3 Segmentation variables and breakdowns for Canadian consumer markets

  21. LO 5 Product Positioning • Product image • Target audience’s mind • Relative to competition • Positioning statements include: • Product name • Category in which product competes • Why target buys the product • What sets product apart • “simple, clear and focused”

  22. LO 5 Positioning Maps

  23. LO 5 Positioning Maps • Also known as Perceptual Maps • Two most important attributes of your product that drive target group purchases in the category • Maps result in a visualization of opportunities and threats In Practice: Positioning drives the coordination of the marketing mix to meet targets’ expectations

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