Transcript Target Marketing

Week
10
The Three Steps of Target
Marketing: Market
Segmentation, Targeting,
and Positioning
Introduction
This week you are going to learn about the
three steps of target marketing:
1. market segmentation
2. targeting
3. positioning
Mr. P. Lemmon
Market Segmentation
Week 11-2
What is the Purpose of the Three
Steps of Target Marketing?
Say you want to sell a product. It is impossible to
try to sell it to everybody. Unless you are a very
big corporation, it is too much time, trouble and
money to convince everyone that they must
have your product.
So, you divide the total market into segments.
Then you zero in on those most likely to buy
your product. Once you figure out this “target
market”, you position your product so it stands
out from all your competitors.
Mr. P. Lemmon
Market Segmentation
Week 11-3
Three Steps Diagram
Market
Segmentation
Step 1:
Break the
total market
into
segments
Targeting
Step 2:
Determine
which segment
is most likely
buy your
product
That segment
Is your target
market
Mr. P. Lemmon
Market Segmentation
Positioning
Step 3:
Position
your product
for
the target
market
Create the
marketing
mix for your
product
Week 11-4
Step 1: Market Segmentation
Market Segmentation is dividing a market
into distinct groups who might be interested
in buying your product.
What is a Market?
PEOPLE
Mr. P. Lemmon
Market Segmentation
Week 11-5
Why Divide the Market?
• With a large country like Canada, there are many
different types of people
–
–
–
–
–
Men and women
Children, teens, adult, retirees
Muslim, Catholic, Protestant
French, English, Chinese, German, Jamaican
Ontario, East Coast, West Coast, Prairies
• It is too difficult to sell to everybody, that is why
we divide the total market into segments.
Mr. P. Lemmon
Market Segmentation
Week 11-6
Four Types of Market
Segmentation Geographic
1.
2.
3.
4.
Geographic
Demographic
Psychographic
Behavioral
Psychographic
Lifestyle or Personality
Mr. P. Lemmon
Region, City or Metro
Size, Density, Climate
Demographic
Age, Gender, Family size
and Fife cycle, Race,
Occupation, or Income ...
Behavioral
Occasions, Benefits,
Uses, or Attitudes
Market Segmentation
Week 11-7
Geographic Segmentation
• Based upon where people live
Types of Geographic Segmentation
World Region or Country
Region of Country
City or Metro Size
Mr. P. Lemmon
Market Segmentation
Week 11-8
Geographic Examples
The reason why we study geographic segmentation is
because WHERE people live has a big effect on their
consumption patterns.
• For instance, if they live in the north vs. the south
•
•
they are more likely to buy snowmobiles, scarves,
toques, parkas, and snow blowers.
If they live the country vs. the city they are more
likely to purchase farm equipment, livestock, and
tractors.
If they live in Canada vs. France they are more
likely to buy hockey sticks, Tim Horton’s coffee, and
snowshoes.
Mr. P. Lemmon
Market Segmentation
Week 11-9
Demographic Segmentation
• Based on the characteristics of a group of
people
Types of Demographic Segmentation
Age
Gender
Family Size
Income
Mr. P. Lemmon
Market Segmentation
Week 11-10
Gender (Male/Female)
Gender is an obvious way to divide the
market into segments since so many
products are gender-specific.
• clothing
• sports
• entertainment
Mr. P. Lemmon
Market Segmentation
Week 11-11
Age
Age is another obvious way to divide the
market into segments since so many
products are based upon “time of life” or
lifecycle.
0-5
6-19
20-34
35-49
50-64
65+
80+
Mr. P. Lemmon
young children
school children
young adults
younger middle-aged
older middle-aged
seniors
SUPER seniors
Market Segmentation
Each age group
will buy different
products
Week 11-12
P&G targets kids with
Crest Kid’s Cavity
Protection toothpaste.
It’s gentle on tooth
enamel and has “funfilled sparkles and
sparkle fun flavor just
for kids.”
Mr. P. Lemmon
Market Segmentation
Week 11-13
Income
• Identifies and targets the affluent for
luxury goods.
• People with low annual incomes can be a
lucrative market.
• Some manufacturers have different grades
of products for different income markets.
Mr. P. Lemmon
Market Segmentation
Week 11-14
Psychographic Segmentation
•Based on psychological attributes and
attitudes
Types of Psychographics
Self-Image
Lifestyle
Personality
Mr. P. Lemmon
Market Segmentation
Week 11-15
Self-Image
When Honda
markets its Reflex
and Elite scooters,
it appeals to the
rebellious,
independent kid in
all of us.
Mr. P. Lemmon
Market Segmentation
Week 11-16
Life Style
The following three advertisements are targeting an
adventurous, healthy, outdoor life style. What product are
they promoting?
Why, cigarettes of course.
Mr. P. Lemmon
Market Segmentation
Week 11-17
Personality
Companies also target consumer by their personality.
What products would you sell to the following personality
types?
Wolf—Beer
Tiger—Outdoor adventure
Beaver—Peace signs
Sheep—All other products
Mr. P. Lemmon
Market Segmentation
Week 11-18
Behavioral Segmentation
•Based on the actions and buying patterns of consumers
Types of Behaviors
Benefits Sought
Occasions
Usage Rate
Loyalty Status
Mr. P. Lemmon
Market Segmentation
Week 11-19
• Benefits Sought:
– Different segments desire different benefits
from products.
• (e.g., P&G’s multiple brands of laundry detergents
to satisfy different needs in the product category)
• Occasions:
– Special promotions and labels for holidays.
• (e.g., Hershey Kisses)
– Special products for special occasions.
• (e.g., Kodak disposable cameras)
Mr. P. Lemmon
Market Segmentation
Week 11-20
• Loyalty Status:
– Brands
– Stores
– Companies
• Usage Rate:
– Light
– Medium
– Heavy
Mr. P. Lemmon
Market Segmentation
Week 11-21
Step 2: Targeting
The target market is that segment that is most likely to
buy your product. The target market is also known as the
primary market.
It is known as the target market because all of your
promotion mix is aimed directly at that market segment.
Promotion Mix
Advertising
Sales Promotion
Personal Selling
Publicity
Mr. P. Lemmon
Market Segmentation
Week 11-22
Example of Targeting
In marketing its Suave
shampoo, Helene
Curtis uses PRIZM to
identify neighborhoods
with high
concentrations of
working women. Such
women respond best
to advertising
messages that with
Suave, “looking great
doesn’t have to cost a
fortune.”
Mr. P. Lemmon
Market Segmentation
Week 11-23
Step 3: Positioning
• Positioning means showing your target
market how your product is better than your
competition’s product.
• Another way of saying positioning is
“demonstrating your competitive
advantage.”
• The competitive advantage can be found in
one or more parts of our old friend the
“marketing mix.”
Mr. P. Lemmon
Market Segmentation
Week 11-24
Identifying Possible Competitive
Advantages
Product
(e.g., consistency,
durability, reliability,
repairability)
Price
(eg. Everyday low prices,
combos, supersizing)
Marketing Mix
Place
(e.g., speed,
convenience, careful
delivery)
Mr. P. Lemmon
Promotion
(e.g., better ads,
charitable foundations)
Market Segmentation
Week 11-25
Example of Positioning
MacDonald’s segments its markets by age. One
of its target markets is kids from age 4-12. It
uses the following marketing mix that is aimed
directly at that segment.
• Advertising
– Ronald MacDonald, Hamburglar, Grimace
• Sales Promotions
– Toys
• Personal Selling
– Kid friendly counter staff
• Publicity
– Ronald MacDonald House
Mr. P. Lemmon
Market Segmentation
Week 11-26
Example of Positioning
Likewise, Burger King uses the following
competitive advantages to position itself
ahead of MacDonald’s for its target markets.
• Product
– Flamebroiled, onion rings, battered fries
• Price
– Cheaper combos
• Promotions
– Burger King character
Mr. P. Lemmon
Market Segmentation
Week 11-27
What is the Position?
At Olive Garden
Restaurants, “When
You’re Here, You’re
Family.”
Mr. P. Lemmon
Market Segmentation
Week 11-28
What is the Position?
Unilever’s
bestselling Lever
2000 soap. It’s good
“for all of your 2000
parts.”
Mr. P. Lemmon
Market Segmentation
Week 11-29
Conclusion
After completing this week, you should be able
to:
Define the three steps of
target marketing
1. Market segmentation
2. Targeting
3. Market positioning
Mr. P. Lemmon
Market Segmentation
Week 11-30