Transcript Market Segmentation and Position

What’s Happening?

Term Project Proposal due next class
Market Segmentation and Positioning
Chapter 8
Market Segmentation
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Dividing the total heterogeneous market for a
good or product into smaller groups which
are more homogeneous.
Steps in Segmentation & Targeting
1.
Break
market
down
2.
Group
into
segments
3.
Choose
target
market
TARGET MARKET
Segmentation works because,….
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Not all buyers are alike
Subgroups may be identified
Subgroups smaller and more
homogeneous
Easier to satisfy smaller groups
www.fordvehicles.com
Effective Segmentation
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To be useful, market segments must be:
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Measurable: size, purchasing power, and profile
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Accessible: can be reached and served/responsive
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Substantial: large enough to profitably serve
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Differentiable: respond differently to a marketing mix
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Actionable: effective programs can be designed
Segments should be evaluated for:
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Size
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Growth characteristics
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Structural attractiveness
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Compatibility with company objectives and resources
Discussion Questions
Put yourselves into small groups and answer
the following assigned questions on page
218:
 Question 2 and all parts of 4
Market Segmentation Variables
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Geographic: dividing a
market into different
geographical units,
such as nations, states,
regions, counties, cities,
or neighbourhoods
Demographic: dividing
the market into groups
based on demographic
variables such as age,
sex, family size, family
life cycle, religion, race,
and nationality
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Socioeconomic: identifying
differences in income,
education, occupation and
social class
Psychographic: dividing a
market into different groups
based on activities, interests,
lifestyle, opinions, values or
personality characteristics
Behavioural: dividing a market
into groups based on consumer
loyalty (to brand or store),
usage, benefits sought/
expected, response to a
product and price
Identifying Market Differences
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Best to use multiple approaches in order to
identify smaller, better-defined target groups.
Start with a single base and then expand to
other bases.
Four strategies for target
marketing
Undifferentiated Marketing:
1.
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When everyone is a customer. Firm decides to ignore market
segment differences and go after the whole market with one
offer.
Concentrated Marketing:
2.
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Zeroing in on a single target. A firm goes after a large share of
one market.
Differentiated Marketing:
3.
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Different Buyers, Different Strategies. A firm decides to target
several market segments and designs separate offers for each.
http://www.tide.com/en_CA/index.jsp
Custom/Individual Marketing:
4.
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Tailoring marketing offers to the needs and preferences of
individual customers
Choosing a Market Coverage Strategy
Depends on:
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Company resources
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Degree of product variability
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Product life cycle stage
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Market viability
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Competitors’ marketing strategies
Market Positioning
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Market positioning:
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Arranging for a product to
occupy a clear,
distinctive, and desirable
place relative to
competing products in
the minds of target
consumers.
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Product position: the way
the product is defined by
consumers on important
attributes, relative to
competing products
– The “quicker-pickerupper?”
– The “uncola?”
– “Great taste, less filling?”
Positioning Map
Positioning map for large luxury SUVs.
POSITIONING MAPS FOR TEA
(Exhibit 8-12, PAGE 215)