HADM 2410 Marketing: Segmentation, Targeting, Positioning

Demographic Targeting

A form of behavioral advertising in which advertisers target online advertisements at consumers based on demographic information.

Market Positioning

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

Geodemographic Targeting

Allows you to target neighborhoods that tend to share the same characteristics that you're looking for.

Psychographic Targeting

Build a digital portrait of users that goes far beyond where they love and what they do.

Case Study: China Social Score

China plans to rank all its citizens based on their social score. People can be rewarded or punished according to their scores.

Geographic Targeting

Delivering different content or advertisements to consumers based on their geographic location

Competitive Targeting

Identifying specific competitors and creating a strategic and tactical offence against them in order to increase your own company's differentiation, market share, and shareholder value relative to others in the industry.

Steps in Segmentation, Targeting, and Positioning

Market Segmentation: Dividing a market into direct groups of buyers who might require separate products or marketing mixes. Marketing Targeting: Evaluating each market segment's attractiveness and selecting one or more segment to enter. Market Positioning: Formulating competitive positioning for a product and a detailed marketing mix.

Segmentation Methods

Not all segmentation methods are equally effective, so to be useful, market segments must have the following characteristics: Measurability: The degree to which the segment's size and purchasing power can be measured. Accessibility: The degree to which segments can be assessed and served. Substantiality: The degree to which segments are large or profitable enough to serve as markets. Actionability: The degree to which effective programs can be designed for attracting and serving segments.

Positioning

Placing a brand in that part of the market where it will have a favorable reception compared to competing products.

Selecting Market Segments

Segmentation reveals market opportunities available to a firm. The company then selects the most attractive segment or segments to serve as targets for marketing strategies to achieve desired objectives.

Micro Targeting

Strategy that uses people's data -- about what they like, who they're connected to, what their demographics are, what they've purchased, and more -- to segment them into small groups for content targeting. Case Study: Netflix - recommends shows/movies based on previous seen content