targetiing &segmentation

7/31/2019 targetiing &segmentation

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Targeting, Segmentation,&

Positioning


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Targeting


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Market SegmentA large identifiable group within amarket with similar wants, purchasing

power, geographical locations, buyingattitudes


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Niche MarketingWhat is an attractive niche ?

A distinct set of needs

A premium can be chargedNot likely to attract competition

Gains certain economies through

specialisationSufficient size, profit and growthpotential


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Local MarketingWhen the marketing mix is altered tosuit the local conditions

eg. Giving a higher/ lower discountthan whats prevailing in the rest of themarkets

or implementing a different promotionscheme


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Individualised MarketingWhen the firm deals with eachcustomer on a one to one basis

When products are customised for thecustomer


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Market TargetingSingle segment concentration

Selective specialisation

Product specialisation

Market specialisation

Full Market coverage -undifferentiated marketing

differentiated marketing


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Undifferentiated MarketingSingle product addressing all segmentswith a single marketing program.

Mass production is possible giving scaleeconomies

Pushes price downwards enabling to

attract price sensitive segments


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Differentiated MarketingA separate market offering for everysegment

Marketing programs for every segmentcould be different

Pushes up costs at various levels,

necessitating sufficient volumes forviability

Generates inter-segment rivalry


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Segmentation


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Segmentation

The analytical goal is to measureConsumer Behaviour and place

each person in a group (segment)that will minimise the behaviour

between each member of thesegment and maximise thevariance between segments


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Why do we need to segment?Because people vary so much fromother people needs, motivations,

decision processes, buying behaviourTo maintain focus on the customertarget segment

To customise advertising according totarget segment


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Behavioral variablesOccasions birthdays,lunchtime,vacations

Benefits eg.travel business,vacation, educational

User status non users, ex users, first

time users, regular users, potentialusers

Usage rate light, medium, heavy


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Loyalty statusdiehards,shifters,switchers

Buyer Readiness unaware awareinformed interested desireintention to buy

Attitude enthusiastic, positive,indifferent, negative, hostile


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Criteria for segmentationMeasurable

Substantial

Accessible

Differentiable

Actionable


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Bases for segmentationGeographic

Demographic

Psychographic

Behavioural benefit, usage situation,extent of usage


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Segmentation Strategy/ Bases for

segmentationGeographic

Demographic

Brand LoyaltyAttitudes and benefits

Psychographic or lifestyle

Behavioural benefit, usage situation, extentof usage

Culture and ethnic subculture


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Factors affecting size of

segmentsAffluence

Sophisticated consumer measurement

and databases

Custom manufacturing

New forms of distribution


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Reaching Target segmentsControlled coverage

Customer self-selection


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Segmentation is a spectrumConcentrated marketing

Differentiated marketing

Mass marketing

Niche marketing


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Positioning


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PositioningWhat the product stands for?

Mind-share

Positioning and segmentationstrategies must have fit. A brand mustbe positioned to be maximally effectivein attracting the desired targetsegment.


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Positioning strategiesProduct characteristics/benefits

Price-quality approach

Use or application approach

Product class approach

Product user approach

Cultural symbol approach

Competitor approach


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Positioning strategiesIdentify competitors

Determine how competitors are

perceived and evaluated

Determine the competitors positions

Analyse the customers

Select the position

Monitor the position


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Positioning DecisionEconomic analysis should guide the decision

Segmentation commitment

Not change for change sake. To stick with theadvertising if it is working.

Make it easy for customers toremember/recall. Use symbols, logos, etc. asa memory aid.

Be honest.


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Segmentation and Planning

for change


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Micromarketing

The result of understanding andrelating to an increasinglyfragmented market place


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Planning for changeUnless managements act, the moresuccessful a company has been in the past,the more likely it is to fail in the future.

Because the basic psychological principle isthat people tend to repeat behaviour forwhich they have been rewarded

Successful strategies must fit an environmentthat is constantly changing. Frequently thefuture arrives before managers are willing togive up the present.


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Consumer Analysis and Social PolicyPolicy issues related to macro-marketing and trends in consumer

decisionsBehavioural/ Psychological economics


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Enhanced Shareholder Value

(ESV)

The ability of a company toprovide job security and

satisfaction, satisfy customers,grow profits consistently, adopt

sound long-term strategies, abilityto weather business shocks.


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3 Ms of profit GrowthMore markets

More market share

More margins


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Markets have 4 componentsPeople and their needs

Ability to buy

Willingness to buy

Authority to buy


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Customer Buying CareerObserving

Making requests

Making selections

Making assisted purchases

Making independent purchases

Be aviora consumer


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Be aviora consumersegmentation (Generational

Cohort analysis)Baby boomers

Baby busters

Skippies

Yuppies

Muppies

Empty nesters

Young again


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EthnocentricityFocusing on ones own way of doingthings with very little sensitivity or

interest in the ways of the worldMarketing practitioners need culturalempathy defined as the ability to

understand the inner logic andcoherence of other ways of life.

Porters 5 factors that


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Porters 5 factors thatcharacterise contemporary

marketsGrowing similarity of countries

Fluid global capital markets

Technological restructuring

Integrating role of technology

New global competitors


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Cultural analysis of global

marketsCultural empathy

Think global, act local

Think local, act global

Glocalisation

Therefore, standardisation is rarelypossible.


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Communication ProblemsThe diversity of markets and consumersalso pose several communication

challenges for marketersTherefore visual language, pictures aremostly used for better universal

understanding. Gestures and words canbe misleading


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Language problems Please leave your values at the desk ParisHotel

Drop your trousers here for best results Bangkok

laundry

Because of the impropriety of entertaining guests ofthe opposite sex in the bedroom, it is suggested thatthe lobby be used for the purpose Zurich hotel

The manager has personally passed all waterserved here Acapulco restaurant

Ladies are requested not to have children in the

bar Norway bar


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Conceptual Equivalency Come alive with Pepsi

Come alive out of the grave

Germany Pepsi brings your ancestors back fromthe grave- China

targetiing &segmentation

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