Extended marketing mix: segmentation, targeting and positioning (6)

market segmentation
process by which a market is divided into distinct customer subsets of people with similar needs and characteristics that lead them to respond to similar ways to a particular product offering and strategic marketing program
why segment the market
By dividing the market into smaller segments, an organisation increases the chance of better meeting those various needs
steps in market segmentation DSTP
1. define the market
2. segmentation
3. targeting
4. positioning
1. define the market
2. segmentation
process of dividing larger market into smaller groups
similar characteristics
-demographic/social
-pyschographic
-behavioural
-benefit sought
3. target
choosing 1 or more of the market segments and developing marketing programs and products that are tailored for each segment
market coverage startergies
undifferentiated marketing
differentiated marketing
concentrated
4. positioning
directing marketing activities towards the target segment
creates an image and reputation of organisation and products
undifferentiated marketing
– mass marketing, one to an entire market with one mix
differentiated marketing
– seperate marketing mix for each segment, more than one segment
concentrated marketing
– target 1 segment only
demongraphic
• Measurable characteristics of a population
• Age, gender, location, family size, income, education, culture, occupation
pschyographic
• Consumers predisposition to behave in a certain way based on values, lifestyles and personality
• Lifestyle based on: activities, interests and opinions
• Extrovert, introvert
behavioural
• Categorised according to behaviour, usage, patterns and value sought from use
• Knowledge of, attitude towards, users for and responses to a product, business etc.
• Purchase occasion, user status, usage rate, user loyalty status, attitude towards product
benefit sought
• Casual factors
• Benefits consumers seek determine their behaviours more accurately
• Benefits they’re seeking in the products they buy
• Unique to product category
characteristic which customers are broken down by
demographic
pschycographical
behavioural
benefit sought