Marketing Segmentation, Targeting and Positioning

1. Marketing Segmentation, Targeting and Positioning The Play Book of Marketing

2. Market • a set of individuals or organizations that desire a product or service and are willing to buy it

3. Market Matching Strategies • Mass-Market Strategy • Segmentation Strategies • Multisegment Strategies • Focused (Concentrated) Strategies

4. Concentrated Strategy one marketing mix one segment of the larger market Ex: Porshe Multisegment Strategy two or more marketing mixes two or more segments EX: GM Segmentation Strategies

5. No Segmentation Strategies • Mass-Market Strategy (Undifferentiated Approach) • one marketing mix • target entire market for entire product category • EX: Ford Model A/T

6. Marketing Segmentation • Identifying groups of people with shared characteristics within the broad markets for consumer or business products • aggregating these groups into larger segments according to their mutual interest in the product’s utility

7. Steps to Segment • Identify the needs structure of the consumer population • Group the customers into homogeneous segments • Id factors that are correlated with the segments (segmentation variables) • Select your target market • Develop your positioning strategy

8. Segmentation Variables • Demographics • age, income, sex, family size • Geographics • regions, climate, density • Behavioristic • benefits sought, usage rates, purchase occasion, psychographics

9. Criteria For Usable Segments • Sufficient Size • Measurability • Accessibility • Responsiveness • Durability

10. Changing Age Structures • Baby Boomers • 1946-1964 • created a mini baby boom • epicenter of society - but are aging • not a segment - merely share age range • Middle Agers and Mature Consumers • 55 and older • quality and service > price

11. Changing Age Structures • Children • 2-12 kids • often play an influential role in decision making • Teenagers • Generation Y • substantial influence • conformist, narcissistic and fickle

12. Changing Households - Trends • Growth of NonTraditional Households • 40% population unmarried • 34 million nonfamily households • Singles have very different buying needs • example: Stouffer’s • New Women’s Roles • 70% working • traditional roles in advertising declining

13. Target Markets • these are the aggregate segments that you will direct your marketing efforts towards • You’re prospects!

14. How Can the PLC be of Use in Target Marketing? • Influences the type of advertising that may be most appropriate • Primary vs. Selective Demand Stimulation • Introduction - education the focus

15. PLC (cont’d) • Growth Stage - turn the focus to the individual brand and maximize market share before competition becomes more aggressive • Maturity Stage - begin full focus on selective demand stimulation as competition increases and weaker competitors begin to exit the market

16. The Target Market Decision • Undifferentiated Marketing • Differentiated Marketing • Focused (Concentrated Marketing)

17. Positioning • Positioning by Attribute • Positioning by Price and Quality • Positioning by Use or Application • Positioning by Product User • Best Strategic Tool • Perceptual Maps!

18. Product Differentiation • Perceptible Differences - unique taste, features, quality • Hidden Differences - ingredients (i.e., natural vs. artificial chemicals, use of recyclables, etc.) • Induced Differences - branding the #1 tool!

19. Branding • the combination of names words, symbols or design that identifies the product and its source and distinguishes it from the competition • physical and perceptual dimension

20. Product PackagingFive Considerations in Package Design • Identification - visibility and legibility • Product Protection and Convenience • Consumer Appeal - color, size, material • Economy - increases costs but offset with consumer demand changes

21. Marketing Strategies • Co-op Strategies