Transcript Market segmentation, targeting, positioning

Reading
Rogan (2011), chapter 5; Thorson & Duffy (2012),
chapter 6
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Explain what is meant by segmentation,
targeting and positioning
Describe the various bases of segmentation
used by marketers
Relate segmentation to the advertiser’s job
Describe four targeting approaches used by
marketers
Identify a number of positioning strategies
and examples of ads relating to them
Outline the concept behind positioning maps
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Market consists of different types of buyers
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Each has different needs to be served
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More profitable to serve one market effectively than
trying to serve all
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Segments grow as product category matures
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Consumer Markets
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Geographic
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Demographic
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Behavioural
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Psychographic
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Underlying psychological
characteristics
Analysis of consumers’ lifestyles
(personal values, actions in a
social context, how people live)
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Based on buyers’ behaviour
patterns (eg benefit being
sought, frequency of use,
intended purpose)
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Measurable
Accessible
Substantial
Differentiable
Actionable
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Deciding which segments to serve
 Once segmentation has been completed, the
company must decide which segments to
serve
 Targeting means selecting a customer
segment at which to aim the marketing mix
 May involve developing different mixes for
each segment
 3 main approaches to targeting
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Undifferentiated
marketing
Differentiated (segmented)
marketing
Concentrated (niche)
marketing
Micromarketing
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Undifferentiated Marketing
▪ Mass marketing of the product
▪ Suitable when buyers’ needs are very similar
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Differentiated Marketing
▪ Developing separate marketing mixes for each segment
served
▪ Feature of product / service and industrial firms
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Concentrated Marketing
▪ Marketer chooses to serve only one segment / niche
▪ Danger in recessionary times of being over-reliant on
one segment
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Micromarketing/Custom marketing
 Campaigns to respond to the needs of individual
consumers
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Establishing a distinct image for the product
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Finding a position in consumers’ minds
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Closely related to perception and image
 Marketers hope their product will be perceived as unique, both in
terms of image and benefits
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Can be difficult to find a clear position for products in
developed markets
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Marketers are competing for attention – leads to
bombardment with promotions and advertising
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Based on; benefits, features, style, value, uniqueness,
sophistication etc.
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Product Features
▪ Emphasising features of the product itself to appeal
to consumers
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Benefit Positioning
▪ Concentrating on the perceived benefits of the
product
▪ Include value for money, quality, timesaving,
uniqueness, guarantees
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Usage Occasion
 Might emphasise the availability / convenience of the
product
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Type of User
 Based upon frequency / category of use
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Competitive Positioning
▪ Requires marketer to differentiate product from others
available in market
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Activities associated with the product
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Personalities
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Cult positioning
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Origin of the product
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Other complementary brands
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Product class
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Positioning Maps
 Based on peoples’ perception of products
 Useful marketing tool
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Identifying position relative to competitors
 Attempting to find new un-served positions
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Information is based on market research data
Examples of the types of axes used are:
▪ Good value for money / poor value for money
▪ Expensive / inexpensive
▪ Convenient / Accessible
▪ Easy to use / Difficult to use
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(Note: orientation = luxury VS performance)
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