Transcript SEGMENTATION, TARGETING AND POSITIONING

SEGMENTATION, TARGETING
AND POSITIONING
Session 4
Wednesday, April 5 2000
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SESSION OUTLINE
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Definition and usefulness of segmentation
A priori vs. a posteriori segmentation
Case: Sally Goodman Visits Hydro-Québec
Segmentation variables
Targeting strategies
Positioning strategies
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SEGMENTATION
• A segment is a homogeneous group of
buyers who react in a similar fashion to
marketing stimuli
• Adapting the marketing mix (programme)
to suit the specific characteristics of the
segment
• The targeted segment must be large enough
to justify a segmented approach
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TYPE OF SEGMENTATION
• A priori segmentation:
– use a known segmentation variable, such as
socio-demographic, geographic, …
– compare buying patterns
• A posteriori segmentation:
– compare buying patterns
– identify useful segmentation variables
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Business Demographics or
Macro-segmentation
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Industry
Company size
Location
Operating Variables
Technology
Customer capabilities
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Purchasing Approaches
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Organization of purchasing function
Power structure
Nature of existing relationships
General purchase policies
Purchasing criteria
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Personal Characteristics
• Buyer-seller similarity
• Attitudes toward risk
• Loyalty
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A good segmentation pattern
should ...
• Be performed on a market which is
segmented
• identify measurable and quantifiable
segments
• segments which can be reached, is stable
over time, and is profitable
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A. Undifferentiated marketing
Company marketing mix
Market
B. Differentiated marketing
Company marketing mix 1
Company marketing mix 2
Segment 1
Segment 2
Company marketing mix 3
Segment 3
C. Concentrated marketing
Company marketing mix
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Segment 1
Segment 2
Segment 3
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Undifferentiated or
Mass Marketing
• Mass producing, mass distributing and
mass promoting the same product in the
same way to all consumers
– Largest potential market helps lower costs
– Difficult to access fragmented markets
– Problems in selecting from multiple ad media
and distribution channels
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Differentiated or
Segmented Marketing
• Marketing recognizes buyers differ in needs,
perceptions and buying behaviours
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Isolate broad segments comprising a market
Adapt offers to best match segment needs
Gain efficiency through strategic fit
More focus and less competition
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Concentrated or
Niche Marketing
• Marketing that focuses on subgroups within
large identifiable groups in a market
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Dividing a segment into subsegments
Defining group with special traits
Seeking unique combination of benefits
Few or no significant competitors
Improves focus of limited resources
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Micromarketing
• Tailoring products and marketing programs
to suit the specific tastes of specific
individuals or locations
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Local marketing
Local tailoring of brands and promotions
Overcomes regional differences
Dilutes brand image and operation efficiency
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POSITIONING
• Give a distinct image to the product
• Relative to competitors
• In the minds of prospects (actual or
potential customers)
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Positioning Competitively
• Defined by customers
on important attributes
• Place in mind relative
to competing products
• Simplify evaluation
• Position happens planned or not
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Positioning Strategies
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Product attributes
Benefits offered
Usage occasions
Classes of users
Directly on competitor
Around competitor
Against product class
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Choosing and Implementing
Communicate and
deliver chosen position
Select the right
competitive advantage
Identify possible
competitive advantage
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Steps in Market Segmentation,
Targeting, and Positioning
6. Develop marketing mix
for each target segment
Market positioning
5. Develop positioning
for each target segment
4. Select the target
segment(s)
3. Develop measures of
segment attractiveness
Market targeting
2. Develop profiles of
resulting segments
Market segmentation
1. Identify bases for
segmenting the market
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NEXT SESSION
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Friday, April 7 2000
The Marketing Plan
Chapter 16 and readings
Submit Essay I
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