Segmenting, Targeting & Positioning MKTG 201: First Semester,
Segmenting, Targeting & Positioning MKTG 201: First Semester, 2010 Week 6 Reading: Chapter 9 up to p. 245 only Lecture Overview Segmentation Targeting
Positioning Basic Definitions Market Segments A group of consumers with similar wants and needs who respond in the same way to a particular marketing action
Basic Definitions Target(s) or target market(s) The segment(s) you want to market to Basic Definitions Positioning How you want to be perceived by your target(s)
Overview of the Segmentation Process 1.Identify the broad product-market of interest 2. Identify key buyer characteristics 3. Form loose clusters of buyer types 4. Identify truly differentiating dimensions Overview of the Segmentation process 5.
Name/label the different segments 6. Find out WHY they behave the way they do 7. Make a rough estimate of the size, potential and cost of each segment 8. Select your target(s)
Ways to Segment Consumer Markets We use one or more Bases of Segmentation Demographic characteristics: variables which describe a populations characteristics e.g. age, income, gender etc Examples: *See Fig 9-3 on p.232
Geography Geographic characteristics: variables that describe geographic location or related variables such as climate e.g. mountain zone, North Island, North Shore. Examples: Psychographics
Psychographic characteristics: a combination of demographic & psychological variables that describe lifestyle Examples: Benefits Sought* Benefits Sought Characteristics: the most important benefit(s) as perceived by the consumer
Benefits: advantages sought by buyer Attributes: features of the product that provide the benefits * Your text calls this segmentation by product features (p.232) Usage Rate Usage rate*: the degree of usage (i.e. low, medium or high) during a specific time period
The 80-20 rule: approx 80% of demand comes from 20% of the market *also known as segmentation by volume Usage Rate Usage rate*: the degree of usage (i.e. low, medium or high) during a specific time period:
The 80-20 rule: approx 80% of demand comes from 20% of the market (heavy users) Example: Frequent fliers Loyalty programmes Target Market Selection Criteria (p.238-9) Market size Expected growth
Competition Cost of Reaching Compatibility - Strategic Fit with the firm & objectives Targeting One or More? Undifferentiated or Mass Marketing Marketing to all consumers the same way, so not really
targeting at all: Targeting Selecting one or more segments to focus marketing efforts on: Targeting One or more? Concentrated or Niche Marketing
Focusing on one segment only: Differentiated Marketing Focusing on more than one segment 2-tier marketing strategies p.229 Targeting One or more?
Mass Customisation Tailoring products to individual needs Positioning is Defined as creating the place an offer occupies in the buyers mind, relative to competing offers, in a given market based on your source(s) of differentiation in the
market the way an offer is defined by buyers in terms of important attributes: physical perceptual How do we measure/describe position? Perceptual Map
Why is Position so Important? Your position (as viewed by the customer), is central to their perceptions and choice decisions
All elements of the marketing programme can affect the position Therefore, a clear positioning strategy is needed to focus the development of the marketing programme Steps in Segmentation, Targeting, and Positioning 6. Develop Marketing
Mix for Each Segment 5. Develop Positioning for Each Segment Market Positioning 4. Select Target
Segment(s) 3. Develop Measures of Attractiveness 2. Develop Profiles of Segments 1. Identify Bases for Segmentation
Market Segmentation Looking Back Bases for Segmenting Consumer Markets (Demographics, psychographics etc) Approaches to Targeting (Mass, niche etc) An overview of the entire process
Spreads overheads cost over entire product range. A single overheads recovery rate (also known as predetermined overheads rate or overheads absorption rate) is used to absorb total overheads cost to all production. For instance, For job order costing, overheads cost...
Implicit bias is the bias in judgement and/or behavior that results from subtle cognitive processes (i.e. they often operate on a subconscious level). Develops from: Developmental history: self observations over time, as well as observing the behavior of family and...
The definition of the AOI of E depends upon the semantics of the application, e.g. the sight capability of E E is interested in receiving information from entities in its AOI only AOI implementation: Multicast groups Publish-subscribe systems JXTA groups...
Steps to drawing congruent triangles A-S-A (Angle-Side-Angle) 1- Draw the known side first (ruler in cm). 2- Label the vertices (points A and B). 3- Place the protractor on point A (point of origin). Read from right to left (0°...
The overall goal of this study is to improve diversity, retention, and student experience in graduate physics. We are soon wrapping up our first year of the study, but eventually we will longitudinally examine cognitive and motivational factors (which will...
JS Mueller & Co. www.muellers.com.au. This presentation deals with: Why short-term letting is occurring and its problematic nature. The steps owners corporations or lot owners can take to combat short term letting ...
Arrhythmic Events WEARIT-II vs MADIT-RIT. WCD Use Early After Coronary Revascularization (CR) WEARIT-II RegistryProbability of One-Year Mortality. Congenital, Inherited Heart Disease. Indications for WCD UseBridging Period for ICD or Heart Transplantation.
Ready to download the document? Go ahead and hit continue!