Segmentation, Targeting,Positioning G Thierry Benoun
Aim : To introduce Planningsegmentation, targeting and positioningPeter Drucker (2001): “The aim of marketing isto know and understand the customer so wellthe product or service fits him and sells itself.”
OBJECTIVES : to define segmentation, targeting and positioning to give examples of segmentation to apply segmentation to a company
Market segmentationGrouping consumers or business customers within amarket into smaller segments based on similarities inneeds, attitudes or behaviour that marketing canaddress and serve better.Ex : Shotgun different from Riffle theory
Benefits of segmentation Lower marketing expenses. Target marketing communications Gain major portion of the market segment (J H Myers,1996) Better matching of customer needs, Taylor product Enhanced profits for business Better opportunities for growth Increased effectiveness in marketing compaign. improves customer satisfaction
Segmentation process and Strategies Four basic factors :(1) clear identification of the segment, (2) measurability of its effective size, (3) its accessibility through promotional efforts (4) its appropriateness to the policies and resources of the company. The four segmentation-strategies are based on (a) behavioural(b) demographic,(c) psychographic(d) geographical differences.
Consumer market segmentationApply segmentation variables in consumer markets Customer characteristics Demographic, socioeconomic, geographic, lifestyle/personality Product-related approaches User types, consumption patterns, loyalty, price sensitivity, perceived benefits, application, purchase occasion, media exposure Example of wigan and leigh college clients
TargetingKurtz, Dave. (2010) states that a target market is a groupof customers that the business has decided to aim itsmarketing efforts and ultimately its merchandise.
Segments for targetingEvaluate and select segments for targeting Eliminate undesirable segments Check segment fit with internal factors Check segment fit with opportunities and threats Select segments that play to strengths/resources Check that segment can be reached/will respond
Positioning According to Ries, A. and Trout, J. (1981) Positioning is about Identifying a market niche for a brand. Positioning therefore involves aspects like price, promotion, distribution, packaging, and competition. You Create a unique impression in the customer mind.
PositioningPositioning should be based on differentiation that is relevant, believable, competitively distinctive carried through in marketing activities, product performancewatch thisWHAT IS POSITIONING? DIFFERENCE BETWEEN VOLVO, FERRARI, LEXUS,BMW,http://www.youtube.com/watch?v=EvtaQhxBCIU&feature=player_detailpage
Conclusion What is segmentation What is Targeting What is positioning What are the benefits of segmentation 4 strategies segmentation is based on
References Drucker, Peter. (2001) The Essential Drucker, Butterworth-Heinemann Ries, A. and Trout,J. (1981) Positioning, The battle for your mind, Warner Books - McGraw-Hill Inc., New York. Kurtz, Dave. (2010) Contemporary Marketing Mason, OH: South-Western Cengage Learning Myers,J.H.(2002) Eradication :Is it ecologically , financially, environmentally and realistically possible? In Managing for Healthy Ecosystems.