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Lecture 3 Segmentation, Targeting, Positioning.pptx
- 2. Topics for Today: Segmentation, Targeting, Positioning 1. Segmentation 1.1 Geographic Segmentation 1.2 Demographic Segmentation 1.3 Psychographic Segmentation 1.4 Behavioural Segmentation 2. Requirements for Effective Segmentation 3. Targeting 3.1 Undifferentiated Targeting 3.2 Focused Targeting 3.3 Differentiated Targeting 4. Positioning 4.1 Case Studies: Gillette, Apple, Dove, United Colors of Benetton 4.2 Keys to Effective Positioning 4.3 Perceptual Maps
- 3. • Market segmentation and targeting is a fundamental part of marketing strategy. • It helps organisations deal with the factor that not all consumers or business customers share identical needs, buying behaviour or product requirements.
- 4. • Limited resources results in organisations being unable to serve all the needs of all the people in the market. • Markets must make choices based on the relative merits of different market segments in determining which groups to prioritise.
- 5. Segmentation
- 6. Consumer Segmentation Criteria • Geographic • Demographic • Psychographic • Behavioural
- 7. Geographic Segmentation: Continent Nation Urban (First tier, Second Tier, Third Tier Cities) Rural
- 8. Demographic Segmentation: • Age • Gender • Race • Religion • Life stage
- 9. What do we mean by Life Stage?
- 11. Psychographic Segmentation would tell you more about your customer’s mindset • Does he want value for money (very particular about price) • Is she looking for prestige, status? • Is he pleasure-loving? Wants fun, a good time. • Does she value aesthetics – love beautiful things? • Loves high technology products? • Loves Eco friendly products – conscious of the environment You can add qualities depending on your product
- 12. Behavioural Segmentation Behavioral segmentation is the observation of each customer’s actions. Once users are identified by their specific behavior, marketers can target messages and campaigns specifically tailored to these audiences.
- 13. Behavioural Segmentation Examples • Purchase occasion: Daily/weekly/fortnightly/ monthly/ bi-monthly/ every six months/ yearly etc • Purchase behaviour: payment by cash/credit card/ loan etc
- 18. Targeting
- 19. Targeting • Targeting involves breaking the target audience into segments and then designing marketing activities that will reach the segments most likely to be responsive to your efforts. • Target marketing can greatly increase the success
- 20. Targeting strategies • UNDIFFERENTIATED Targeting • Targets the entire market with one marketing mix • You have the same product, the same price, the same place, and the same promotion for the entire market – e.g. McDonald’s
- 21. Targeting strategies • FOCUSED Targeting • Targets a single segment Rolex has chosen to concentrate on only the luxury segment of the watch market.
- 22. Targeting strategies • DIFFERENTIATED Targeting Targets two or more segments with a different marketing mix for each segment • The Toyota brand sells high-quality cars for a reasonable price. • The Lexus Car brand, that Toyota owns, aims at the premium end of the car market.
- 23. Targeting strategies • FOCUSED • Targets a single segment • UNDIFFERENTIATED • Targets the entire market with one marketing mix • DIFFERENTIATED • Targets two or more segments with a different marketing mix for each segment
- 24. POSITIONING
- 25. POSITIONING IS THE SPACE THAT YOUR BRAND OCCUPIES IN THE CONSUMER’S MIND
- 26. You will buy Gillette Shaving Blades because the place Gillette has in your mind stands for Shaving.
- 27. Gillette has a very strong positioning in your mind for Shaving.
- 28. But will you buy Gillette Ice Cream? No.
- 29. • The Positioning of Apple Inc. • Apple has positioned itself to be a lifestyle product for wealthy people, innovators and people with good jobs. • Apple has become a desired product but not easily affordable. • This premium positioning helps Apple in the long term. • When people can afford to buy Apple products they do not haggle about price, price would be secondary and the image of having an Apple product is more important.
- 30. Case Study: Dove Soap Most soaps show glamorous women.
- 31. Dove tried to be different.
- 35. So Dove tied to stand for women who are real, who are like your neighbor. They are not unrealistically beautiful women. Watch this video.
- 37. • Case Study: United Colors of Benetton • What do you think United Colors of Benetton stands for, when you see these ads….
- 44. The Keys to Effective Positioning Jobber & Fahy, 2009
- 48. Keys to effective positioning Credibility Clarity Consistency Competitiveness Jobber & Fahy, 2009
- 49. Keep it simple Association with one or a low number of benefits
- 50. • Think of the Poundland positioning. • Everything costs just a few pounds!
- 52. Perceptual Mapping A visual representation of consumers perceptions of a market How? Identify the competing brands Identify important attributes Conduct research Plot on two-dimensional map
- 54. Perceptual Map - UK Car market Prestige, Status Economy Personal, Emotional Basic, Rational