* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chapter 7 – Segmentation, targeting and positioning
Bayesian inference in marketing wikipedia , lookup
Planned obsolescence wikipedia , lookup
Product placement wikipedia , lookup
Grey market wikipedia , lookup
Product lifecycle wikipedia , lookup
Darknet market wikipedia , lookup
Ambush marketing wikipedia , lookup
Service parts pricing wikipedia , lookup
Price discrimination wikipedia , lookup
Perfect competition wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Consumer behaviour wikipedia , lookup
Marketing research wikipedia , lookup
Marketing communications wikipedia , lookup
First-mover advantage wikipedia , lookup
Digital marketing wikipedia , lookup
Food marketing wikipedia , lookup
Market penetration wikipedia , lookup
Pricing strategies wikipedia , lookup
Viral marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Supermarket wikipedia , lookup
Market analysis wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Marketing plan wikipedia , lookup
Youth marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Street marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Target audience wikipedia , lookup
Sensory branding wikipedia , lookup
Product planning wikipedia , lookup
Green marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Advertising campaign wikipedia , lookup
Global marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Market segmentation wikipedia , lookup
Chapter 7 – Segmentation, targeting and positioning Segmentation Dividing a market into distinct groups with distinct needs, characteristics or behaviour who might require separate products or marketing mixes. Segments should have: Maximal within group similarity Maximal difference between other groups Segments should be well defined and actionable. Positioning Setting product attributes price and the promotional mix to meet target standards. Positioning is about perceptions – how target markets perceive your product offering The type of channels you use will dramatically affect how people view our product Positioning questions - What effect will selling a product through dollar stores vs. high end department stores have on consumer perception? - What about selling high-end watches only on the internet vs. only though high-end watch stores? - What about selling office supplies and equipment through professional salespeople vs. staples? Requirements for effective segmentation Measurable Size, purchasing power, and profile of segment Accessible Can be reached and served Substantial Large and profitable enough to serve Differentiable Respond differently Actionable Effective programs can be developed Segmenting consumer markets Geographical segmentation - Nation or country - State or region - City or metro size Density Climate Demographic segmentation - Age, - Race (Hispanic, Asian, Africans, LGBT) - gender - Income, education - Family size - Family life circle - Occupation - Religion, nationality - Generation (baby boom for example) - Social class Psychographic segmentation - Lifestyle (how people live, how they spend their time and money, how they allocate their time) Activities Interests Opinions à VALS life-style classification Personality (refers to internal characteristics) Core values Behavioural segmentation - Occasions (valentine’s day) - Benefits - User status - Usage rate - Loyalty status - Buyer-readiness o Decision roles 2 o o o o o Initiator Influencer Decider Buyer User Benefit Segmentation - Segmentation on the basis of the most important benefit sought by consumers when purchasing the product or service Segmenting International markets Inter-market segmentation involves forming segments of consumers who have similar needs and buying behaviours even though they are located in different countries Evaluating market segments - Segment size and growth Segment structural attractiveness Company objectives and resources Selecting target market segments Undifferentiated marketing targets the whole market with one offer. mass marketing focuses on common needs rather than what’s different Differentiated marketing targets several different market MISSING NOTES Niche marketing targets a larger share of a smaller marketing Limited company resources Knowledge of the market More effective and efficient Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. - Local marketing - Individual marketing à AKA one – to one marketing / mass customization Choosing a targeting strategy depends on Company resources Product variability Product life-cycle stages Market variability Competitors’ marketing strategies Typical positioning strategies 3 Socially responsible firm Green products Low price- premium price (Value pricing) Luxury products Quality levels Cool products High tech Reliability Customer service And many more Differentiation and positioning Competitive advantage is an advantage over competitors gained by offering consumers greater value either through lower prices or by providing more features / greater quality Identifying a set of possible competitive advantages to differentiate along the lines of: - product - services - channels - people - image Positioning maps show consumer perceptions of marketer’s brands vs. competing products on important buying dimensions. 4