Marketing Chapter 6- Segmentation, Targeting, Positioning, Differentiation

Segmentation
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers, who have common needs and priorities, and then designing and implementing strategies to target them.
Ways to Segment the Market
Geographic, Demographic, Psychographic, Behavioral
Geographic
Where your going to sell your product, Ex- not going to sell surfboards in Ohio
Demographic
Who are you going to sell it to, Ex- Gender, Age, Race
Psychographic
Based off of activities and interests
Behavioral
Occasion- Ex- Market candy in October
User Status- not using now but will eventually
Target Strategies
Undifferentiated, Concentrated, Differentiated, Micro-Marketing
Undifferentiated
Same product regardless of segmentation, Ex. Hershey kisses
Concentrated
Concentrate on one segment
Differentiated
Have different stores for different markets, Ex- Old Navy
Micro-Marketing
Local and individual level
Product Positioning
How customers perceive your product relative to the competition
Re-positioning
Changed position on who to focus your product on
Ways to Differentiate Your Product
1. New Product- Product is different than anyone else’s product on the Market

2. Service- Serve people differently than other competitors and businesses

3. Channels- Ex. Amazon- Only purchase a certain way

4. Image- Ex. Coach Purse

5. Price- Ex. Wal-Mart- Different prices

6. People- Ex. Hair Salon