4300775
Description
Mind Map by Irving Arias Dro, updated more than 1 year ago
|
Created by Irving Arias Dro
over 8 years ago
|
|
Marketing Strategy
(Segmentation, Targeting
and Positioning)
- SEGMENTATION
- DEFINITION: Market segmentation is a
marketing strategy which involves dividing a
broad target market into subsets of
consumers, businesses, or countries that
have, or are perceived to have, common
needs, interests, and priorities, and then
designing and implementing strategies to
target them.
- The importance
- People have differet wants,
needs. There is the need of
target people (segmentation).
Harvard Business School
study suggests that 85% of
30,000 products failed for
poor segmentation.
- Mass marketing strategy employs mass
promotion, mass production and mass
distribution in the same way for mass
consumers. In the past, companies have used
mass marketing to achieve the economies of
scale. However, times have changed, and it is
almost impossible to create products to
appeal to the entire market
- People have differet wants,
needs. There is the need of
target people (segmentation).
Harvard Business School
study suggests that 85% of
30,000 products failed for
poor segmentation.
- The importance
- THe division of
Markets into
subgroups :
- Demographic
- A market split into
sub-segments on the basis of
variables such as age, gender,
sex, family, income, education,
religion, culture, occupation,
profession, ethnicity etc is
known as demographic
segmentation. To make it
simpler, it is the division of
market on the basis of
demographics
- Age
- This is one of the most effective ways
of demographic segmentation. At the
age of 1 to 2, firm shall try to offer
stuff like nappies for new born, baby
cream, anti colic, baby clothes etc.
With the passage of time, these may
change to toys ( a lot of sub-division)
then bikes, balls, sport, jeans, school,
then college, then University, car,
insurance, employment, then
retirement, pension and even death
- This is one of the most effective ways
of demographic segmentation. At the
age of 1 to 2, firm shall try to offer
stuff like nappies for new born, baby
cream, anti colic, baby clothes etc.
With the passage of time, these may
change to toys ( a lot of sub-division)
then bikes, balls, sport, jeans, school,
then college, then University, car,
insurance, employment, then
retirement, pension and even death
- Ethnicity
- Companies have successfully
segmented their markets on ethnic
basis all over the world in areas
where the demand needs to be met
that way. For example: HFA(Halal)in
the UK makes sure that Muslim
consumers are provided Halal foods.
- Companies have successfully
segmented their markets on ethnic
basis all over the world in areas
where the demand needs to be met
that way. For example: HFA(Halal)in
the UK makes sure that Muslim
consumers are provided Halal foods.
- Gender
- Gender segmentation is another
powerful and successful
segmentation and can be seen in
areas like clothing, cosmetics,
beauty products, hair styles,
careers, cars, insurance and now
even education. Perfume
companies target men and women
separately with their various model
and brands.
- Gender segmentation is another
powerful and successful
segmentation and can be seen in
areas like clothing, cosmetics,
beauty products, hair styles,
careers, cars, insurance and now
even education. Perfume
companies target men and women
separately with their various model
and brands.
- Age
- A market split into
sub-segments on the basis of
variables such as age, gender,
sex, family, income, education,
religion, culture, occupation,
profession, ethnicity etc is
known as demographic
segmentation. To make it
simpler, it is the division of
market on the basis of
demographics
- Geographic
- Marketers can segment according to
geographic criteria—nations, states,
regions, countries, cities, neighborhoods,
or postal codes. With respect to region, in
rainy regions merchants can sell things like
raincoats, umbrellas and gumboots. In hot
regions, one can sell summer clothing. A
small business commodity store may
target only customers from the local
neighborhood, while a larger department
store can target its marketing towards
several neighborhoods in a larger city or
area, while ignoring customers in other
continents.
- Marketers can segment according to
geographic criteria—nations, states,
regions, countries, cities, neighborhoods,
or postal codes. With respect to region, in
rainy regions merchants can sell things like
raincoats, umbrellas and gumboots. In hot
regions, one can sell summer clothing. A
small business commodity store may
target only customers from the local
neighborhood, while a larger department
store can target its marketing towards
several neighborhoods in a larger city or
area, while ignoring customers in other
continents.
- Psychopgraphic
- Psychographic segmentation,
which is sometimes called
lifestyle, is measured by studying
the activities, interests, and
opinions (AIOs) of customers. It
considers how people spend their
leisure.
- Examples: people drinking decaf
coffee or tea, weight watchers,
seekers of less fatty food.
Products based on life styles may
be highly customised to appeal
to a particular way of life
- Examples: people drinking decaf
coffee or tea, weight watchers,
seekers of less fatty food.
Products based on life styles may
be highly customised to appeal
to a particular way of life
- Psychographic segmentation,
which is sometimes called
lifestyle, is measured by studying
the activities, interests, and
opinions (AIOs) of customers. It
considers how people spend their
leisure.
- Behavioural
- For instance, some users may
be classed as heavy users
while others as light users.
Some may be just first time
user while other are
occasional users only.
- Examples: some users may be
classed as heavy users while
others as light users. Some
may be just first time user
while other are occasional
users only. It may consists on:
Brand loyalty, Attitude
towards product, Readiness to
buy,etc.
- Examples: some users may be
classed as heavy users while
others as light users. Some
may be just first time user
while other are occasional
users only. It may consists on:
Brand loyalty, Attitude
towards product, Readiness to
buy,etc.
- For instance, some users may
be classed as heavy users
while others as light users.
Some may be just first time
user while other are
occasional users only.
- Demographic
- Benefits:
- Easier to understand the exact needs of the
customer and target the marketing strategy at a
particular group. Profit Potential, business growth,
Retaining Customer,
- Easier to understand the exact needs of the
customer and target the marketing strategy at a
particular group. Profit Potential, business growth,
Retaining Customer,
- Disadvantages
- 1. No highly customised product. Only group
served not individuals. 2. No link to competitive
advantage 3. Lack of suitable process
- 1. No highly customised product. Only group
served not individuals. 2. No link to competitive
advantage 3. Lack of suitable process
- DEFINITION: Market segmentation is a
marketing strategy which involves dividing a
broad target market into subsets of
consumers, businesses, or countries that
have, or are perceived to have, common
needs, interests, and priorities, and then
designing and implementing strategies to
target them.
- Targeting:
- Definition: The selection of
potential customers to
whom a business wishes
to sell products or
services.
- undifferentiated
- It does not target a
particular segment of the
market. Instead the firm
adopts one marketing
strategy and hopes that it
will appeal to as many
people as possible.
- Example: Coca Cola's original marketing
strategy was based on this format when
they offered one product, which they
believed had universal appeal. However
now that Coca Cola has introduced other
products, it has changed its marketing
strategy to differentiated marketing
- Example: Coca Cola's original marketing
strategy was based on this format when
they offered one product, which they
believed had universal appeal. However
now that Coca Cola has introduced other
products, it has changed its marketing
strategy to differentiated marketing
- It does not target a
particular segment of the
market. Instead the firm
adopts one marketing
strategy and hopes that it
will appeal to as many
people as possible.
- Diferentiated
- If a firm decides to target
several segments of the
market, it is engaging in a
differentiated marketing
strategy
- Example: An airline company offering first
(segment 1), business (segment 2) and economy
class tickets (segment 3) , with separate
marketing programmes to attract customers for
each of the ticket types is an example of
differentiated marketing strategy.
- Example: An airline company offering first
(segment 1), business (segment 2) and economy
class tickets (segment 3) , with separate
marketing programmes to attract customers for
each of the ticket types is an example of
differentiated marketing strategy.
- If a firm decides to target
several segments of the
market, it is engaging in a
differentiated marketing
strategy
- Concentrated
- Concentrated marketing
occurs when a business
concentrates its marketing
effort on one segment of the
market.
- The firm will develop a product that caters for the
needs of that particular group. For example Rolls Royce
cars and the Harrods Group target the premium
segment of the market.
- The firm will develop a product that caters for the
needs of that particular group. For example Rolls Royce
cars and the Harrods Group target the premium
segment of the market.
- Concentrated marketing
occurs when a business
concentrates its marketing
effort on one segment of the
market.
- Definition: The selection of
potential customers to
whom a business wishes
to sell products or
services.
- Positioning
- Definition: Aims to make a brand occupy a
distinct position, relative to competing
brands, in the mind of the customer.
Companies apply this strategy either by
emphasizing the distinguishing features of
their brand. or they may try to create a
suitable image (inexpensive or premium,
utilitarian or luxurious, entry-level or
high-end, etc.) through advertising.
- Steps in positioning:
- Stage1: Analyse
competitors' positions
- Analyse competitor's position in the market
place, marketers must understand the current
state of the market. Eg. What competitors are
out there? and how does the target market
perceive them?
- Example: For years: Mcdonald's developed positioning
strategies based only on its direct competition.
McDonald's failed to realise that consumers' needs for
a quick, tasty meal was fulfilled by indirect
competitors such as microwave singe serving meals or
telephone takeaways.
- Example: For years: Mcdonald's developed positioning
strategies based only on its direct competition.
McDonald's failed to realise that consumers' needs for
a quick, tasty meal was fulfilled by indirect
competitors such as microwave singe serving meals or
telephone takeaways.
- Analyse competitor's position in the market
place, marketers must understand the current
state of the market. Eg. What competitors are
out there? and how does the target market
perceive them?
- Stage 2: Offer a good or service
with a competitive advantage
- Offer a good or service with a
competitive advantage to provide a
reason why consumers will perceive
the product as being better than the
competition.
- Example; offering asuperior image
like Giorgio Armani, a unique
product feature like Levi's 501,
button fly jeans.
- Example; offering asuperior image
like Giorgio Armani, a unique
product feature like Levi's 501,
button fly jeans.
- Offer a good or service with a
competitive advantage to provide a
reason why consumers will perceive
the product as being better than the
competition.
- Stage 3: finalize the marketing
Mix
- Finalizing the marketing mix by putting
all the pieces into place. A good or
service must deliver benefits that the
segment values such as convenience or
status.
- Finalizing the marketing mix by putting
all the pieces into place. A good or
service must deliver benefits that the
segment values such as convenience or
status.
- Stage 4: Evaluate responses
and modify as needed
- Marketers evaluate target market's
responses so they can modify
strategies as needed. Overtime, the
firm may find that it needs to
change which segments its targets
or alter product's position to
respond to marketplace changes.
- For example: re-positioning is
commonly used when a companytry
to modify its brand image to keep up
with changing times. Powerade was
originally positioned as a drink that
should be consumed when you were
il. Nowdays, through the use of
professional athletes the product is
positioned as a sports drink that can
improve endurance.
- For example: re-positioning is
commonly used when a companytry
to modify its brand image to keep up
with changing times. Powerade was
originally positioned as a drink that
should be consumed when you were
il. Nowdays, through the use of
professional athletes the product is
positioned as a sports drink that can
improve endurance.
- Marketers evaluate target market's
responses so they can modify
strategies as needed. Overtime, the
firm may find that it needs to
change which segments its targets
or alter product's position to
respond to marketplace changes.
- Stage1: Analyse
competitors' positions
- Steps in positioning:
- Definition: Aims to make a brand occupy a
distinct position, relative to competing
brands, in the mind of the customer.
Companies apply this strategy either by
emphasizing the distinguishing features of
their brand. or they may try to create a
suitable image (inexpensive or premium,
utilitarian or luxurious, entry-level or
high-end, etc.) through advertising.
Want to create your own Mind Maps for free with GoConqr? Learn more.