how to reach your consumer?
Marketing segmentation-
targeting- positioning
Target Marketing Process (STP)
Segmentation
Targeting
Positioning
1. Market Segmentation
what?
The process of dividing a larger market into smaller
pieces based on one or more meaningful shared
characteristics
why?
Segmentation allows marketing mix to be more
closely matched to specific needs, thus improving
efficiency and effectiveness of resource utilization
How?
Segmentation variables are dimensions that divide
the total market into fairly homogenous groups, each
with different needs & preferences
Keys for Segmentation
variables
variables
requirements
requirements
Segmentation Variables
who where
how
why
Demographic Segmentation
Provides information about WHO
buys.
Does not provide enough information
about WHY they buy
Easy to collect (secondary sources)
Could involve a mix of variables
Psychographic Segmentation
Provides information about WHY
people buy
More useful and relevant that
demographics
Difficult to collect (requires primary
data)
Behavioral Segmentation
A technique that divides consumers
into segments on the basis of how they
act toward, feel about, or use a good or
service.
Market Segmentation,
targeting, and
Positioning
.
Market Segmentation is
dividing a market into smaller
groups of buyer with distinct
needs, characteristics, or
behavior who might require
separate products or marketing
mixes
Market Segmentation
Requirements for Effective Segmentation
Measurable
Measurable • Size, purchasing power, profiles
of segments can be measured.
Accessible
Accessible • Segments must be effectively
reached and served.
Substantial ((profitable
Substantial profitable • Segments must be large or
profitable enough to serve.
Differential-elastic
Differential-elastic
•Segments must respond
differently to different marketing
mix elements & actions.
Actionable
Actionable •Must be able to penerate attract
and serve the segments .
Evaluating Market Segments
Segmentation Golden Rule :
Maximum homogeneity within segments
Maximum heterogeneity between segments
Measurability
Segment size & growth potential
Segment profitability (short-term & long-
term)
Reach-ability
Competitive advantage
Market Segmentation & Target
Marketing
Market Segmentation
Dividing a market into
customer categories
Target Marketing
Selecting a category of
customers with similar wants
and needs who are likely to
respond to the same products
2. Targeting
How?
Through evaluating market segments &
deciding which to go after
Results
‘a description of the typical customer in a
segment’
The main decision is to choose the
appropriate targeting strategy
To Sum up:
market-targeting evaluating each
market segment's attractiveness and
selecting one or more of market
segments to enter.
.
Targeting Strategies
Undifferentiated Strategy
Differentiated Strategy
Concentrated Strategy
Customized Strategy
Undifferentiated Strategy
Defining an entire market for a particular product
as the target market (homogeneous market)
Designing a single marketing mix for, and directing
it at the total market
Differentiated Strategy
Developing different marketing mixes (product
line) to different segments
Concentrated Strategy
Focusing the firm’s efforts by offering one
or more products to a single market
segment
Step 2. Market Coverage
Strategies
Company
Company
Marketing
Marketing Market
Market
Mix
Mix
A. Undifferentiated Marketing
Company
Company
Marketing Segment
Segment11
MarketingMix
Mix11
Company
Company Segment
Segment22
Marketing
MarketingMix
Mix22
Company
Company Segment
Segment33
Marketing
MarketingMix
Mix33
B. Differentiated Marketing
Segment
Segment11
Company
Company
Marketing
Marketing Segment
Mix Segment22
Mix
Segment
Segment33
C. Concentrated Marketing
Chipsy
Hyundai,
Mercedes, American University
Customized Strategy
An approach that tailors specific
products and the messages about
them to individual customers
involves modifying the basic good or
service to meet the needs of an
individual
ROLLS - ROYCE
“Of course the vehicle will be
right for you. After all, it will
be designed by you.”
Considerations for Choice of
Targeting Strategy
Company
Resources
Product Variability
Product’s Stage
in the Product Life Cycle
Market Variability
Competitors’
Marketing Strategies
Considerations for Choice of
Targeting Strategy
Company Resources
Product Variability
Product Life Cycle
Market Variability
Competitive Marketing Strategies
Market positioning build a
desirable image in the minds
of the consumers
Porsche is
positioned on
the basis of
performance
and freedom.
8- 29
Positioning
“The process of creating a perception in the consumer’s mind
regarding the nature of a company and its products relative to the
competition”
(Clow & Blaack, p. 48)
7 ways to achieve effective positioning:
Attribute
Cultural
Competitors
Symbol
POSITIONING
Product Application
Class Use
Product Price-Quality
User Relationship
3. Positioning
Developing a marketing strategy aimed at
influencing how a particular market segment
perceives a good or service in comparison to
competition
Creating an image in consumers’ minds that
captures your brand’s character & benefits
(Brand Personality)
Repositioning involves redoing a brand’s
position to respond to marketplace changes.
ROLLS - ROYCE
“Of course the vehicle will be
right for you. After all, it will
be designed by you.”
Selecting a position
Factors to consider:
Competition — look for a gap or niche.
Customers — seek product attributes.
Company image — what is the current
image?
Target market — have the needs of the
target market changed? Do we need
repositioning?
The marketing mix — does it support the
selected position? 4-33
4-33
Steps in Segmentation,
Targeting, and Positioning
Market
Positioning
Market
Targeting
Market Segmentation
It has been said that marketing
segmentation variables and requriments
allow marketing mix to be more closely
matched to specific needs of the consumer,
and improving efficiency and effectiveness
of marketing management, discuss this
statement-with practical examples.
