Transcript Presentation Title - University of Montana

The Strategy of Target
Marketing
Economic
Empowerment
Fellows Program
Session 1: The Strategy of Target
Marketing
• Target Marketing Strategy
– What is it?
– Why is it relevant?
• Target Marketing Strategy: 3–step process
– Segmentation
– Targeting
– Positioning
Step 1: Segmentation
• 3 segmentation variables
– Demographics: pop. size, age, gender, ethnicity, etc.
– Psychographics: behavioral (AIO’s & VAL’s) and
psychological characteristics
– Behavior: use and usage (80/20 rule)
• Segmenting B2B markets: Organizational
demographics – type, size, location of org.
Step 2: Targeting
• Evaluation of target markets identified
– Purchasing power of each target market
– Can segment be “reached”
– Is segment large enough to satisfy organizational
sales goals and/or to be profitable
– Market share capture
• Determine Target Marketing Strategy
– concentrated, differentiated or undifferentiated
– what is appropriate for one org. is not necessarily
appropriate for another, what is appropriate depends
on your org’s goals
Step 3: Positioning
• Influencing how target market(s) should
perceive your product relative to
competition
– Analyze competitor’s product and how their product is
positioned
– Determine your product’s competitive advantage
• relative to competing alternatives
• differentiating factor(s): compelling reason(s) for target
market to purchase your product instead of competing alt’s
– Finalize Marketing Mix
– Evaluate Response and re–position if necessary
• Re–evaluate positioning and marketing mix