Transcript Positioning is

Segmenting, Targeting
& Positioning
MKTG 201: First Semester, 2010
Week 6 Reading:
Chapter 9 up to p. 245 only
Lecture Overview
•Segmentation
•Targeting
•Positioning
Basic Definitions
• Market Segments
– A group of consumers
• with similar wants and needs
• who respond in the same way to a particular marketing action
Basic Definitions
• Target(s) or target market(s)
– The segment(s) you want to market to
Basic Definitions
• Positioning
– How you want to be perceived by your target(s)
Overview of the Segmentation Process
1.Identify the broad product-market of interest
2. Identify key buyer characteristics
3. Form loose “clusters” of buyer types
4. Identify truly differentiating dimensions
Overview of the Segmentation process
5. Name/label the different segments
6. Find out WHY they behave the way they do
7. Make a rough estimate of the size, potential
and cost of each segment
8. Select your target(s)
Ways to Segment Consumer Markets –
We use one or more Bases of Segmentation
• Demographic characteristics: variables which
describe a population’s characteristics e.g. age,
income, gender etc
– Examples:
*See Fig 9-3 on p.232
Geography
• Geographic characteristics: variables that describe
geographic location or related variables such as
climate e.g. mountain zone, North Island, North
Shore.
– Examples:
Psychographics
• Psychographic characteristics: a combination of
demographic & psychological variables that describe
lifestyle
– Examples:
Benefits Sought*
• Benefits Sought Characteristics: the most important
benefit(s) as perceived by the consumer
– Benefits: advantages sought by buyer
– Attributes: features of the product that provide the benefits
* Your text calls this “segmentation by product features” (p.232)
Usage Rate
• Usage rate*: the degree of usage (i.e. low, medium or
high) during a specific time period
• The 80-20 rule: approx 80% of demand comes from
20% of the market
*also known as segmentation by volume
Usage Rate
• Usage rate*: the degree of usage (i.e. low,
medium or high) during a specific time period:
• The 80-20 rule: approx 80% of demand
comes from 20% of the market (heavy users)
• Example:
– Frequent fliers
– Loyalty programmes
Target Market Selection Criteria (p.238-9)
• Market size
• Expected growth
• Competition
• Cost of Reaching
• Compatibility - Strategic ‘Fit’ with the firm &
objectives
Targeting – One or More?
• Undifferentiated or Mass Marketing
– Marketing to all consumers the same way, so not really
targeting at all:
• Targeting
– Selecting one or more segments to focus marketing efforts
on:
Targeting – One or more?
• Concentrated or Niche Marketing
– Focusing on one segment only:
• Differentiated Marketing
– Focusing on more than one segment
– 2-tier marketing strategies p.229
•
Targeting – One or more?
• Mass Customisation
– Tailoring products to individual needs
Positioning is…
• Defined as creating the ‘place’ an offer occupies in
the buyer’s mind, relative to competing offers, in a
given market
• based on your source(s) of differentiation in the
market
• the way an offer is defined by buyers in terms of
important attributes:
– physical
– perceptual
How do we measure/describe ‘position’?
Perceptual Map
Why is Position so Important?
• Your “position” (as viewed by the customer), is central to their
perceptions and choice decisions
• All elements of the marketing programme can affect the position
– Therefore, a clear positioning strategy is needed to focus the
development of the marketing programme
Steps in Segmentation,
Targeting, and Positioning
6. Develop Marketing
Mix for Each Segment
5. Develop Positioning
for Each Segment
Market
Positioning
4. Select Target
Segment(s)
3. Develop Measures
of Attractiveness
2. Develop Profiles
of Segments
1. Identify Bases
for Segmentation
Market Segmentation
Looking Back
• Bases for Segmenting Consumer Markets
(Demographics, psychographics etc)
• Approaches to Targeting (Mass, niche etc)
• An overview of the entire process