Presentation on theme: "chapter 4 MARKET SEGMENTATION, TARGETING AND POSITIONING"— Presentation transcript:
1chapter 4 MARKET SEGMENTATION, TARGETING AND POSITIONING part two: making sense of marketschapter 4 MARKET SEGMENTATION, TARGETING AND POSITIONING
2an opening challengeYou are the marketing director of a loss-making brewery. You need to develop new products to revitalise the business but you do not have the resources to launch a full range.How will you choose what type of beer to sell and to whom?
4market attractiveness market opportunitycompetitive advantagethe objectives of the organisation
5segmentation, targeting and positioning market segmentationtargetingpositioning
6market segmentation and targeting: why do it? many markets are demand-drivenconsumers and customers are more demandingfew mass markets remainmarkets are fragmenting
7what is market segmentation? ‘the process of dividing a total market into subgroups (segments) such that each segment consists of buyers and users who share similar characteristics but are different from those in the other segments’ (Masterson and Pickton, 2014)ref needs a page no. (glossary)
8criteria for determining good market segments measurablehomogeneousheterogeneoussubstantialaccessibleoperational
9consumer segmentation bases demographicsocio-economic or social gradinggeographicgeo-demographicpsychographicmediagraphicbehavioural
10life-stage segments (BRMB-TGI) fledglingsflown the nestnest buildersmid-life dependentsunconstrained couplesplayschool parentsprimary school parentssecondary school parentshotel parentssenior sole decision makersempty nestersnon-standard familiesunclassified
11examples of behavioural segmentation bases purchase occasionbenefits soughtusage rateuser statusreadiness stageattitude to productinvolvementadopter typeloyalty status
12using multiple segmentation variables AQ – re-set figure type
13organisational segmentation bases macro-segmentationgeographictype of organisationindustry grouping/business sectorcustomer size
18evaluating a segment for targeting sufficient current and potential sales/profits?potential for sufficient future growth?not over-competitive?no excessive barriers to entry or exit?unsatisfied needs that the company can serve well?
19positioning‘the place a brand is perceived to occupy in the minds of the target market relative to other competing brands’ (Masterson and Pickton, 2010: 148)