MKT - 06 Market Segmentation, Targeting, and Positioning

Factors to be considered when choosing a market-coverage strategy (5)

(1) Company resources (2) Product variability (3) Product's stage in the life-cycle (4) Market variability (5) Competitor's marketing strategies

Segmentation variables for consumer markets (4)

(1) Geographic (2) Demographic (3) Psychographic (4) Behavioral

Variables in international market segmentation (4)

(1) Geographic location (2) Economic factors (3) Political and legal factors (4) Cultural factors

Criteria for determining which differences to promote Unique Selling Proposition (USP) (7)

(1) Important (2) Distinctive (3) Superior (4) Communicable (5) Preemptive (6) Affordable (7) Profitable

Three major steps in target marketing

(1) Market segmentation (2) Market targeting (3) Market positioning

Levels of market segmentation (3)

(1) Mass marketing (no segmentation) (2) Micromarketing (complete segmentation) (3) Segment or niche marketing (in between)

Characteristics of an effective market segmentation (5) MASDA

(1) Measurability -The degree to which size, purchasing power, and profiles of a market segment can be measured. (2) Accessibility -Refers to the degree to which a market segment can be reached and served. (3) Substantiality -Refers to the degree to which a market segment is sufficiently large or profitable. (4) Differentiation -Refers to the degree to which a market segment can conceptually be distinguished and has the ability to respond differently to different marketing mix elements and programs. (5) Actionability -The degree to which effective programs can be designed for attracting and serving a given market segment.

Typical brand propositions (5)

(1) More for more (2) More for the same (3) The same for less (4) Less for much less (5) More for less

Variables in business market segmentation in addition to consumer market segmentation. (4)

(1) Operating characteristics (2) Purchasing approaches (3) Situational factors (4) Personal characteristics

Specific ways that a company can differentiate its offer from those of the competition (5)

(1) Product differentiation (2) Services differentiation (3) Channel differentiation (4) People differentiation (5) Image differentiation

Three factors in evaluating market segments

(1) Segment size and growth -Analyze current segment sales, growth rates, and expected profitability for various segments. (2) Segment structural attractiveness -Consider effets of: competitors, availability of substitute products, and the power of buyers and suppliers. (3) Company's objectives and resources -Examine company skills and resources needed to succeed in that segment. -Offer superior value and gain advantages over competitors.

Three market-coverage strategies

(1) Undifferentiated marketing (2) Differentiated marketing (3) Concentrated marketing

A set of buyers who share common needs or characteristics that the company decides to serve.

Target market

This segmentation consists of offering different products or using different marketing approaches for different age and life-cycle groups.

Age and life-cycle segmentation

This segmentation involves dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.

Behavioral segmentation

Under this variable are: (1) Occasions (2) Benefits (3) User status (4) User rates (5) Loyalty status (6) Readiness stage (7) Attitude towards product

Behavioral variable

This segmentation involves dividing the market into groups according to the different benefits the consumers seek from the product.

Benefit segmentation

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Undifferentiated marketing

An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits.

Competitive advantage

A market-coverage strategy in which a firm goes after a large share of one or a few submarkets.

Concentrated marketing

This segmentation calls for dividing the market into groups based on variables like age, gender, family size, family life-cycle, income, occupation, education, religion, race, and nationality. The most popular base for segmenting customer groups because it is easier to measure than most types of variables.

Demographic segmentation

Under this variable are: (1) Age (2) Gender (3) Family size (4) Family life-cycle (5) Income (6) Occupation (7) Education (8) Religion (9) Race (10) Generation (11) Nationality

Demographic variable

A market-coverage strategy in which a firm decides to target several market segments and designs a separate offer for each.

Differentiated marketing

The full positioning of a brand.

Value proposition

This segmentation calls for dividing a market into different groups based on gender.

Gender segmentation

One of the most promising developments in multivariable segmentation.

Geodemographic segmentation

This segmentation calls for dividing the market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods.

Geographic segmentation

Under this variable are: (1) World region or country (2) Country region (3) Density (4) Climate

Geographic variable

This segmentation consists of dividing a market into different income groups.

Income segmentation

In this approach, companies form segments of consumers who have similar needs and buying behavior even though they are located in different countries.

Intermarket segmentation

Setting the competitive positioning for a product and creating a detailed marketing mix.

Market positioning

Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.

Market segmentation

Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter.

Market targeting

Helps organizations to link Philippine Census data with lifestyle patterns. MORES

Marketing Organization in Research

Mass producing, mass distributing, and mass promoting about the same product in about the same way to all consumers. It creates the largest potential market, which leads to the lower costs, which in turn translate into either lower prices or higher margins.

Mass marketing

This segmentation consists of dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Occasion segmentation

The way the product is defined by consumers on important attributes - the place the product occupies in consumer's minds relative to competing products.

Product's position

This segmentation calls for dividing a market into different groups based on social class, lifestyle, or personality characteristics.

Psychographic segmentation

Under this variable are: (1) Social class (2) Lifestyle (3) Personality

Psychographic variable

Company recognizes that buyers differ in their needs, perceptions, and buying behaviors.

Segment marketing