Marketing: Segmentation, Targeting, Positioning

Segmentation definition
-Division of market
-Based on fact markets have buyers with different needs cannot all be met with same product offering
-By grouping buyers into segments with similar need firms can identify segment best serve
-Criteria can be divided into groups
Segmentation groups
(i) Behavioural: focuses nature of purchase, branding loyalty and benefits sought
(ii) Psychographics: studies emotions , personalities linked to purchase choices
(iii) Profile Variable: examines age, beliefs and values
Segmentation uses
– Provides understanding of why people buy in markets
– Aid identification of opportunities
Targeting definition
– Selecting particular customer/group at which to aim marketing mix
– Targeted segment will be one which firm can have competitive adv
– Different marketing mixes may be developed different segments
Targeting generic markets
(i) Undifferentiated: mass marketing of product, treats all potential/buyers as homogenous group.
(ii) Differentiated: company creates campaigns that appeal to at least 2 MKT segments.
(iii) Concentrated: target to one specific audience.
Targeting uses
Aim of evaluating market segments is for company to arrive at a choice of 1+ segments to concentrate on
Positioning definition
– Involves establishing unique position for product in mind of consumer
– strongly related to perception and image
– The act of designing companies offering so occupies a meaningful and distinctive position in target consumer mind
Positioning strategy
may be based on:
-features
– benefits
– occasion on which used
– type of user
Key to successful positioning
marketer must have:
– clarity
– consistency
– credibility
– competitiveness