Segmentation Targeting and Positioning Learning Unit 4

Outcomes Know what the marketing strategy is and why it is the focus of the text Understand the target market Be familiar with the basics of the marketing mix Know what market segmentation is and the segmentation bases Know three targeting approaches Know what positioning is and why is it useful Understand differentiation

Marketing strategy Is the big picture of what the company plans to do in a market…. Marketing Strategy = Target market + Related marketing Mix

Target market

4 P’s

Segmentation Dividing up a market of consumers with different needs into groups or segments with similar needs. Market segment = relatively similar, who respond the same way to a marketing mix Each segment with different needs need to be treated differently

Segmentation

Dividing up a market of consumers with different needs into groups with similar needs.

When dividing a market….. Homogeneous within: Customers are similar and will respond in a similar way. Heterogeneous between: Customers in different segments are very different from each other. Substantial: Enough people in segment to make it financially viable Operational: Can be identified, and reached via media and distribution

Dimensions for segments Demographic - Age, gender, income, occupation… Psychographic – lifestyle, activities, interests Behavioural – How they use the product, where, when how much, how often do they buy the product Geographic – Where they live

Targeting If segmentation done ------ targeting 3 basic options to targeting Single target market approach Multiple target market approach Combining – 2 or more Mass marketing

Positioning How consumers THINK about or PERCEIVE your product relative to competitors products in a market. Your four P’s will help with positioning….

How do we develop marketing mixes? Product: The need satisfying offering. Can be a physical product or service or combination of both

Place Getting the product to the place where it has to be sold.

Hair salon

PRICE $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ The right price will sell your product. Price considers: Costs, Competition & Consumer reaction 3 C’s

PROMOTION All about communication All about telling the target market about your product Tools of the promotional mix: Personal selling (using a sales person – direct contact) Mass selling (advertising & publicity) Advertising: paid form, non personal presentation of ideas by an identified sponsor Publicity: unpaid form, non personal presentation of ideas and services by an identified sponsor

Advertising

Publicity

Sales promotion Activities other than advertising, publicity and personal selling that stimulate interest. Buy one get one free, Buy three get the cheapest for free 40 % down on all ladies shoes till Saturday…..

4p’s - Need to be balanced

Marketing a service – add 3 p’s People Process Productivity The needs of your target market determine your MIX!

THE END