Segmentation, targeting and positioning

Successful positioning

- Consistency . people are bombarded with messages daily. To break through this noise, a consistent message is required. Confusion will arise if this year marketers position on 'quality of service', then next year they change it to 'superior product performance'. Two examples of brands that have benefited from a consistent message being communicated to their target customers are Gillette ('the best a man can get') and L'Oréal ('because you're worth it'). Both receive high recall when consumers are researched because of the consistent use of a simple message over many years - Competitiveness to make a brand stand out to consumers so that they want to follow or use this brand. The differential advantage should have a competitive edge. It should offer something of value to the customer that the competition is failing to supply - Credibility, being who they say they are making sure quality is up to par on what the brand stands for. the differential advantage that is chosen must be credible in the minds of the target customer. - Clarity being clear to consumers and malign information easy to understand without the muddle. Complicated positioning statements are unlikely to be remembered. Simple messages such as Walmart's 'always low prices' is clear and memorable.

Effective marketing mix

- Matches customer needs - Well blended - Matches corporate resources - Creates a competitive advantage.

Why segment markets?

- Target market selection. A target market is a chosen segment of market that a company has decided to serve, a single marketing mix strategy can be developed to match those requirement. - Tailored marketing mix. Marketing segmentation allows the grouping of customers based upon similarities that are important when designing marketing strategies so it allows marketers to tailor a marketing mix package that meets it needs. - Differentiation. A company may differentiate its offering from competition. For example, Apple created the smartphone market with the launch of its first iPhone in 2007. Bundling a new set of applications and functionality into its mobile handset gave the iPhone the difference needed to attract a new generation of mobile users. For a while, Apple led the way, but now competition in this market is intense. Nearest rival, Samsung, sells smartphones that are technically similar and so both firms are seeking ways to differentiate their offer (Davis, 2014). - Opportunities and threats. c. As customers become more affluent, seek new experiences and develop new values, new segments emerge. The company that first spots a new and underserved market segment and meets its needs better than the competition can benefit from increasing sales and profit growth.

Requirements for effective segmentation

1. Measurable: size, purchasing power, profiles of segments can be measure 2. Accessible: segments can be effectively reached and served. 3. Substantial. segments are large or profitable enough to serve 4. Differentiable: segments must response differently to different marketing mix elements and programs. 5. Actionable: effective programs can be designed to attract and serve the segments.

perceptual mapping

A useful tool for determining the position of a brand in the marketplace is the perceptual map—a visual representation of consumer perceptions of the brand and its competitors using attributes (dimensions) that are important to consumers. The key steps in developing a perceptual map are as follows. 1 Identify a set of competing brands. 2 Identify important attributes that consumers use when choosing between brands, using qualitative research (e.g. group discussions). 3 Conduct quantitative marketing research where consumers score each brand on all key attributes. 4 Plot brands on a two-dimensional map(s).

Repositioning Strategies

Occasionally a product or service will need to be repositioned because of changing customer tastes or poor sales performance. Repositioning involves changing the target markets, the differential advantage or both. What can be done is image repositioning and maybe reminding consumers, refreshing them. a product can be repositioned in the mind of consumers. Tangible positioning is the different product with a different target market. Intangible repositioning is targeting a different market segment with the same product.

Positioning

Positioning the product is not about physical location, it is about positioning in people's minds. A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer.

Targeting marketing

The identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy. In undifferentiated marketing the Marketing mix → whole market. Sometimes the cost of developing a sperate market mix for separate segments may outweigh the potential gains of meeting customer needs more exactly. With a differentiated marketing strategy , there is a different marketing mix for different segments that is focused and customised to the segment. one disadvantage of differentiated is he loss of cost economies,

Market Segmentation

the identification of individuals or organisations with similar characteristic that have significant implications for the determination marketing strategy. Market segmentation involves deciding a diverse market into several, smaller, more similar, sub-markets.

Segmenting consumers

there are 3 broad groups of consumer segmentation 1. behavioural; behavioural variables such as benefits sought from the product and buying patterns may be considered the basis for segmentation 2. psychographic; Psychographic variables are used when researchers believe that purchasing behaviour is correlated with the personality or lifestyle of consumers; consumers with different personalities or lifestyles have varying product or service preferences and may respond differently to marketing mix offerings. The common method for developing psychographic profiles of a population to conduct a large scale-survey: VALS and VALS 2 values and lifestyles 3. profile; such as socio-economic group or geographic location are valuable (Van Raaij and Verhallen, 1994). For example, a marketer may see whether there are groups of people who value low calories in soft drinks and then attempt to profile them in terms of their age, socio-economic groupings and so on.