Presentation on theme: "Market Segmentation, Targeting and Positioning"— Presentation transcript:
1 Market Segmentation, Targeting and Positioning chapter 7
2 Ch. 7 ObjectivesUnderstand the concepts: market segmentation, and target marketing. positioningLearn the advantages and disadvantages of target marketingDiscuss segmentation criteria, strategies, and seg. basesUnderstand typical positioning strategies
3 What is a market? Individuals or organizations who: Are willing, able, and capable of purchasing a firm’s productSegmentation is critical because demand is often heterogeneous
4 Market Segmentation/Targeting Market Segmentation is:The process of dividing up the total market into distinct subsets of customers with common needs or characteristicsTargeting is:Selecting one or more segments that are appropriate
5 Target Marketing Advantages Easier analysis of potential and actual consumersTailoring of products to marketAssessment of demand potentialIdentify competing productsIncreased sales effectiveness
6 Target Marketing Disadvantages Increased marketing costs More complex strategy to implementNarrow segmentation can impact brand loyaltyEthics and stereotyping issuesCan hinder a “Global” Brand ImageFaux segmentation may be viewed cynicallySee Excedrin Migraine:
8 Market Criteria Segmentable markets are: Heterogeneous Measurable SubstantialActionableCompanies must be able to respond to preferences with an appropriate marketing mixAccessibleMarket must be efficiently reachable
20 Behavior/Usage Segmentation Markets can be segmented by how often or how heavily consumers use a specific product80/20 Principle - 80% of revenue generated by 20% of customersLight Users80%Heavy Users20%
21 Behavior/Usage Segmentation 80/20 true for many productsFor Beer it’s 88% to 16%Who are the heavy users?
23 How to Position Brands: Positioning:“an image that a product projects in relation to competitive products and to the firm’s other products”
24 7 Ways to Position (differentiate) a product Show MGD clip(s)How is MGD differentiated?1) Product AttributeIt has something that others do not haveWhatever attributes seem important to consumersKey attribute may in reality be bogus...
25 7 Ways to Position (differentiate) a product Show Kia clip2) By CompetitorShow SimilarityShow Difference
26 7 Ways to Position (differentiate) a product 3) By Cultural Symbol (brand marks)
28 7 Ways to Position (differentiate) a product 4) By Price / QualityCan be high or low (Generics)5) By Product ClassDifferent type of product/service, but provides the same or better benefitsExample: New AmTrak Acela service to NY
29 6) By Use or ApplicationTypically used to add uses of product and expands user base
30 7 Ways to Position (differentiate) a product 7) By Product UserProduct is positioned for a particular group of usersList some potential target markets for cellular phones:
Your consent to our cookies if you continue to use this website.