2 Segmentation, Targeting and Positioning Segmentation and TargetingMarket segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs. Market targeting (targeting) is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.Note to InstructorThis weblink directs you to Boecker’s homepage. “Boeker Public Health is the Middle East largest Pest Management group providing World Class pest control, pest management, professional disinfecting, and pest control equipment & chemicals. Founded in 1993, Boecker provides World Class quality services for commercial & residential clients including Pest management, Food Safety Training & Consulting, Fumigation & Heat Treatment as well as professional disinfecting services”. Boecker’s offices are active in Lebanon, United Arab Emirates, Kuwait, Qatar and Nigeria. It is interesting to browse through their website and see the different services they offer for their various segments and targets.
3 Segmentation, Targeting and Positioning Market Differentiation and PositioningDifferentiation involves actually differentiating the market offering to create superior customer value. Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
4 Market Segmentation Segmenting consumer markets Segmenting business marketsSegmenting international marketsRequirements for effective segmentation
6 e.g : KFC BD menu vs KFC Arabian menu Market SegmentationSegmenting Consumer MarketGeographic segmentation divides the market into different geographical units such as nations, regions, provinces, parishes, cities, or even neighborhoods.e.g : KFC BD menu vs KFC Arabian menuMcdonalds in Brazil Vs ArabiaMyMacy’sNote to InstructorProtrac Online is an Egyptian company that specializes in providing the latest technologies in geo-marketing research and services by employing researchers, data analysts, and geo-professionals, and a large scale of data maps and tools. Protrac refers to geo-marketing as a sophisticated marketing science that uses geographical information for analyzing distribution channels of products. Protrac provides insight into the competition and target segments surrounding a specific distribution point. Hence, this allows companies to understand the specific changes needed in terms of distributing products so as to better serve the targeted consumers.Protrac offers three types of products: Geographical Digital Maps, Socio-Demographic Data, and Trade Channels Census and Survey Data. Hossam Ragheb, CEO of Protrac, said that using digital maps for marketing purposes is crucial, especially for Fast-Moving Consumer Goods companies (FMCGs), such as Coca-Cola, Proctor and Gamble, and Unilever. Ragheb added that “[for suppliers] to know where to sell the products... and where this outlet is, not only in terms of address, but the demographics] of the area—[for example] how many people bove 15 years [of age] are living in this area— gives them a sort of direction to know which products should go where.”
7 Market SegmentationSegmenting Consumer MarketsDemographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. - Age and Life Cycle - Gender - Income
8 Market Segmentation Demographic Segmentation Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups. e.g : Kraft JELL-O Gender segmentation divides the market based on sex (male or female). e.g : Perfumes, Watches etc. Income segmentation divides the market into affluent or low-income consumers. e.g: Rolex Vs Casio watchesNote to InstructorThis weblink takes you to Atlantis, the Palm in Dubai. Specifically to the kids and teens page where you can see that special services are offered to this segment.
9 Market SegmentationPsychographic SegmentationPsychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics.
10 Market SegmentationBehavioral SegmentationBehavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.OccasionsBenefits soughtUser statusUsage rateLoyalty statusNote to InstructorConsumer loyalty: ‘Mac fanatics’—fanatically loyal Apple Computer users—helped keep Apple afloat during the lean years, and they are now at the forefront of Apple’s burgeoning iPod and iTunes empire.Students often get confused with the difference between behavioral and psychographic segmentation. Behavior is more tied into how consumers use the product. Real Marketing 7.1 discusses how consumers behave during the holy month of Ramadan.According to a study conducted by Maktoob Research regarding Ramadan in the region, 71 percent of respondents believe that the month inables them to experience a feeling of “solidarity and brotherhood with fellow Muslims.”It was discovered that most of the respondents enjoyed having Iftar (breaking their fasting) with their families at home compared with the significant portion, but not a majority, who said that they liked to have Iftar in restaurants.Muslim people rush to make Mawa’ed Rahaman (free public eateries), where poor people are offered free food at Iftar time. Accordingly, it is a good chance for businesses to show their support in corporate social responsibility (CSR) and to promote the Ramadan spirit.Special types of foods that are demanded during ramadan. For example, stores selling Eastern desserts, such as Konafa , Basbousa , and the like experience a substantial increase in demand during Ramadan, and they face the challenge of satisfying the large number of customers queuing in lines, particularly right before Iftar time.
11 Market SegmentationBehavioral SegmentationOccasion segmentation: Dividing the market into segments according to occasions when buyers get the idea to buy. e.g: M&M campaign during Christmas and New Year Benefit Sought: Diving market according to different benefits. e.g: Gillette campaigns User Status: Markets segmented into users, non-users, ex-users, potential users. e.g: Toys R Us campaigns
12 Market SegmentationBehavioral SegmentationUsage Rate: Segmenting market in terms of light, medium and heavy users. Loyalty Status: Segment the market by customer loyalty. Customers are loyal to - Brands - Company - Stores
13 Market SegmentationUsing Multiple Segmentation BasesMarketers rarely limit their segmentation analysis to only one or a few variables. Rather, they often use multiple segmentation bases in an effort to identify smaller, better-defined target group