Market Segmentation and Product Positioning Chaprter 5
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Market Segmentation and Product Positioning Chaprter 5
- 1. Jao M. Balatbat BSA - II
- 3. Market Segmentation and Product Positioning CHAPTER 5
- 4. The Marketing Segmentation and Positioning Process Scan the firms current situation Determine consumer needs and wants Determine consumer needs and wants Develop product positioning Choose segmentation strategy Implement segmentation strategy Undertake periodic evaluation Nucleus of marketing planning and decision making
- 5. Scan the firm’s current situation •the firm has to honestly look into its strengths and weaknesses and consider opportunities that can be taken advantage of.
- 6. Determine consumer needs and wants •the needs and wants are significant determinants of successful marketing
- 7. Segment the market •Market segmentation - is the act of subdividing the market into a group or groups of people who have similar needs within the group, but dissimilar needs across the groups. An example would be people wanting cars, but different types of cars. The different types of cars may be luxury, sports, or SUV's.
- 8. Three Ways in Which a Marketer Can Segment the Market •Benefit Segmentation •Usage Segmentation •Behavioral/Psychographic Segmentation
- 9. •Benefit Segmentation – inherently unique, consumers are similar in their desire to derive benefits from items offered by different companies.
- 10. •Usage Segmentation – the subdivision of the market based on how often a consumer uses the product.
- 11. •Behavioral/Psychographic Segmentation – the segmentation of users based on various personality and behavioral traits. Different Categories •Believers •Strivers •Makers •Strugglers •Actualizers •Fulfilleds •Achievers •Experiencers
- 12. Actualizers
- 13. Fulfilleds
- 14. Achievers
- 15. Experiencers
- 16. Believers
- 17. Strivers
- 18. Makers
- 19. Strugglers
- 20. Develop product positioning • is the point in the segmentation process where the marketer creates the product offering in a way that hits the consumers mind and separates the offering from competition.
- 21. Choose segmentation strategy • First the company may decide not to join the market. In that case, no segmentation activity happens. • Second, the firm may decide not to segment at all but instead to simply mass the market. For example, branded items may not need to segment because of their popularity and product acceptance or if the market is so limited, segmenting may prove to be disadvantage. • Third, the firm may decide to market to one segment and fourth, it may want to market to more than one segment.
- 22. Implement segmentation strategy and Undertake Periodic Evaluation
Editor's Notes
- Consumer needs and wants are evolving. While needs are basic to the ordinary consumer, these needs are graduating to wants. Consequently, “new” needs and wants are developing. Changes in lifestyle, adjustments in group norms, and revolutions in technology are some significant modifiers of consumer needs and wants. For some, cellphone has become consumer needs. This is what we mean by “enhanced” consumer need.
- It is often believe that they largely buy and patronize a product or service in terms of the value that they can derive from such items. Benefit here refers to the worth of an item in the market. This benefit maybe exhibited in different forms like advantage gained, help given, profit earned, plus points added to, significance presented, usefulness provided, and convenience enjoyed.
- They will be categorized into those who do not use the product, those who use it a little, and those who are considered heavy users.
- Actualizers - These are the consumers who have the highest incomes. Successful, sophisticated, take charge people whose purchases often reflect cultivated tastes for relatively upscale products.
- Fulfilleds – Are consumers who belong to the high resource group. They are principle - oriented. These are mature, satisfied, comfortable, and reflective individuals. They favor durability, functionality and value in products.
- Achievers – Consumers who belong to the high resource group. They are status – oriented. Successful, career and work oriented people, achievers favor established prestige products that demonstrate success to their peers.
- Actualizers - These are the consumers who have the highest incomes. Successful, sophisticated, take charge people whose purchases often reflect cultivated tastes for relatively upscale products. Fulfilleds – Are consumers who belong to the high resource group. They are principle - oriented. These are mature, satisfied, comfortable, and reflective individuals. They favor durability, functionality and value in products. Achievers – Consumers who belong to the high resource group. They are status – oriented. Successful, career and work oriented people, achievers favor established prestige products that demonstrate success to their peers. Experiencers - These are young, vital, enthusiastic, impulsive, and rebellious individuals. They spend much of their income on things such as clothing, fast food, music, movies, and audio/video equipment. Believers - Believers are conservative, conventional, and traditional. They favor familiar products and established brands. Strivers - Uncertain, insecure, approval seeking, and resource constrained, these people favor stylish products that emulate the purchases of those with greater material wealth. Makers - These are practical, self sufficient, traditional, family oriented individuals. They favor only products with a practical or functional purpose such as tools, utility vehicles, and fishing equipment. Strugglers - These may be elderly, passive, resigned, concerned, and resource oriented people. They are cautious consumers who are loyal to favorite brands.
- Believers - Believers are conservative, conventional, and traditional. They favor familiar products and established brands.
- Strivers - Uncertain, insecure, approval seeking, and resource constrained, these people favor stylish products that emulate the purchases of those with greater material wealth.
- Makers - These are practical, self sufficient, traditional, family oriented individuals. They favor only products with a practical or functional purpose such as tools, utility vehicles, and fishing equipment.
- Strugglers - These may be elderly, passive, resigned, concerned, and resource oriented people. They are cautious consumers who are loyal to favorite brands.
- In choosing the appropriate segmentation strategy, four alternatives are presented. First the company may decide not to join the market. In that case, no segmentation activity happens. Second, the firm may decide not to segment at all but instead to simply mass the market. For example, branded items may not need to segment because of their popularity and product acceptance or if the market is so limited, segmenting may prove to be disadvantage. Third, the firm may decide to market to one segment and fourth, it may want to market to more than one segment.
- – Once the segmentation strategy has been chosen, the marketing mix is designed and implemented. In the process, care should be taken in executing the decided segmentation strategy. Periodic evaluation should be conducted to achieve the desired results. Realignments may be needed to make the necessary adjustments. Lastly, support is critical to any segmentation strategy.