Chapter 6 - Segmentation, Targeting and positioning

Target Market Profiles

Created by considering: Geographics Demographics Psychographics Behaviouristics

Positioning Statement

How the product meets consumer needs How the product is differentiated from the competition Branded product name Category in which it competes One or two main reasons to buy (benefits) What sets it apart

Forms of Market Segmentation

Mass Marketing Segment Marketing Niche Marketing Individualized Marketing

Geographics

Where a target market lives (country, urban, rural)

Demographics

age, gender, family composition, income, occupation, education, ethnic

psychographics

attitude to life, values, personality, interests, opinions

What is the key to success in market segmentation?

balance, satisfying customer needs, profit

Persona

character descriptions of a brand's typical customer Brings data alive Captures a "day in the life"

Individualized Marketing (build your own shoe)

involves customizing offers to fit individual needs Personalized or one-on-one marketing consumer and business markets

Market segmentation

is the process of putting individual customers into groups based upon their common needs, and there common response to marketing actions.

Segment Marketing (cereal)

marketing a wide range of different products and brands to specifically meet the needs of an organization's varied target markets B2B can be by key account

The existence of different market segments causes firms to use a marketing strategy of ______

product differentiation

Mass Marketing

product with broad appeal is widely marketed with no product or marketing differentiation (home phone service)

Niche Marketing (go lean cereal)

restrict efforts to a narrow but profitable segment that is of marginal interest to major competitors Often done by new or smaller firms

10 Market segmentation steps:

review of company and business unit objectives, clustering customer needs, conducting SWOT analysis, identifying the segment and product potential by analyzing sales, and pinpointed budget and profit projections

In the marketing world their are two main market segments:

the consumer market the business market

Product Positioning (image)

the impression of the branded product you want to establish in the consumers' minds relative to their needs and also in contrast to the competition.

Positioning maps

visual representations of how products or product groups are positioned to a category of customers

behaviouristics

why a consumer buys a product? product benefit usage rate loyal to product