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Mkt4007 10


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Mkt4007 10

  1. 1. Segmenting, Targeting and Positioning
  2. 2. Market Segmentation The act of dividing a market into distinct groups of buyers who might require separate products and/or marketing mixes
  3. 3. Aims of Segmentation <ul><li>To achieve a better competitive position for an existing product/service </li></ul><ul><li>To minimise cannibalisation </li></ul><ul><li>To identify gaps in the market for new product and service opportunities </li></ul><ul><li>To identify potential new buyers and users </li></ul>
  4. 4. Requirements for a segment <ul><li>Homogeneity within the segment </li></ul><ul><li>Heterogeneity between segments </li></ul><ul><li>S Substantial (more precisely: profitable) </li></ul><ul><li>A Accessible (reachable by the tools) </li></ul><ul><li>D Different (between seg. & in response to marketing tools) </li></ul><ul><li>A Actionable (something to offer this segment) </li></ul><ul><li>M Measurable (planning!) </li></ul>
  5. 5. Segmentation by Consumer Relationship to Product <ul><li>Benefit Segmentation </li></ul><ul><li>Behavioural Segmentation </li></ul><ul><ul><li>Brand Usage </li></ul></ul><ul><ul><li>Product Category Usage </li></ul></ul><ul><ul><li>Level of Product Usage </li></ul></ul><ul><ul><li>Shopping Behaviour </li></ul></ul><ul><li>Response Elasticity </li></ul><ul><ul><li>Price Elasticity </li></ul></ul>
  6. 6. Segmentation by Consumer Characteristics <ul><li>Geographic </li></ul><ul><li>Demographic </li></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Socio-economic group </li></ul></ul><ul><ul><li>Life cycle </li></ul></ul><ul><li>Psychographic </li></ul><ul><ul><li>Lifestyle </li></ul></ul><ul><ul><li>Attitudes </li></ul></ul><ul><ul><li>Personality </li></ul></ul>
  7. 7. Commercially Available <ul><li>Life stage </li></ul><ul><li>Socio-Economic Class (Weberian, Warnerian, Fussell/National Readership Survey[UK]) </li></ul><ul><li>ACORN (A Classification of Residential Neighborhoods - 56 classifications by CACI) </li></ul><ul><li>Mosaic (61+ groups, Experian) </li></ul>
  8. 8. NRS <ul><li>A upper middle class 3.4 % doctor, solicitor, barrister, accountant, director </li></ul><ul><li>B middle class 21.6 % teacher, nurse, police officer </li></ul><ul><li>C1 lower middle class 29.1 % low manager/ supervisors, student, office workers </li></ul><ul><li>C2 skilled working class 21.0 % foreman, plumber, bricklayer </li></ul><ul><li>D working class 16.2 % manual workers, shop worker </li></ul><ul><li>E underclass 8.8 % casual laborers, pensioners, unemployed </li></ul>
  9. 9. A.I.O. Framework <ul><li>Male Lifestyle </li></ul><ul><li>Self-made businessman 17% </li></ul><ul><li>Devoted family man 17% </li></ul><ul><li>Frustrated family worked 19% </li></ul><ul><li>Successful professional 21% </li></ul><ul><li>Retiring homebody 26% </li></ul>
  10. 10. Grouping women by attitude - Mueller-Heumann 1992 <ul><li>Self-aware ; concerned about fashion, appearance + exercise </li></ul><ul><li>Fashion directed ; as above but not interested in exercise/sport </li></ul><ul><li>Green Goddess : concerned about sport/exercise, not appearance </li></ul><ul><li>Unconcerned ; neutral attitudes to all </li></ul><ul><li>Conscience-striken ; too busy with family to be concerned with self-realisation issues </li></ul><ul><li>Dowdies ; indifferent to fashion/ exercise and dress for comfort. </li></ul>
  11. 11. Anything is possible really: <ul><li>Education </li></ul><ul><li>Gender </li></ul><ul><li>Race </li></ul><ul><li>Sexual orientation </li></ul><ul><li>Wealth / net-worth </li></ul><ul><li>Political views </li></ul><ul><li>Blue/White/Pink/Gold Collar </li></ul>
  12. 12. More unusual segmentation techniques <ul><li>Left handed </li></ul><ul><li>Order of Birth </li></ul><ul><li>Birth sign </li></ul><ul><li>more……? </li></ul>
  13. 13. Top-down vs Bottom-up Market Segments Total Market divided into segments segments derived from Single Consumer
  14. 14. Using a number of segmentation tools <ul><li>An airline is interested in attracting nonflyers (seg: relationship with product ). Nonflyers consist of those who fear flying, those who are indifferent, and those who are positive towards flying (seg: attitude ). Among those who feel positive are people with higher incomes who can afford to fly (seg: income ). The airline may decide to target higher-income people who have a positive attitude toward flying but simply have not flown . </li></ul>
  15. 15. Targeting Product User
  16. 16. Porter Narrow Broad Uniqueness Cost Differentiation Strategy Cost Leadership Market Segmentation Core Competency Market Scope
  17. 17. Targeting <ul><li>Three Evaluation Factors </li></ul><ul><ul><li>Segment size and growth </li></ul></ul><ul><ul><li>Segment structural attractiveness </li></ul></ul><ul><ul><li>Organisational objectives and resources </li></ul></ul><ul><ul><ul><li>Definable </li></ul></ul></ul><ul><ul><ul><li>Sizable </li></ul></ul></ul><ul><ul><ul><li>Reachable </li></ul></ul></ul><ul><ul><ul><li>Relevance </li></ul></ul></ul>
  18. 18. Positioning
  19. 19. Positioning <ul><li>Designing the company’s image and value offer so that the segment’s customers understand and appreciate what the company stands for in relation to its competitors </li></ul>
  20. 20. Positioning Strategies <ul><li>Competitive Positioning </li></ul><ul><ul><li>Reference to competition </li></ul></ul><ul><li>Consumer Positioning </li></ul><ul><ul><li>Informational </li></ul></ul><ul><ul><li>Image </li></ul></ul><ul><li>Message </li></ul><ul><ul><li>Use </li></ul></ul><ul><ul><li>User </li></ul></ul><ul><ul><li>Benefit </li></ul></ul><ul><ul><li>Dissociation </li></ul></ul>
  21. 21. Map!
  22. 22. Map! Possible Area Impossible position New Position Competitor Area
  23. 23. Problems <ul><li>Underpositioning </li></ul><ul><li>Overpositioning </li></ul><ul><li>Confused positioning </li></ul>
  24. 24. STP <ul><li>An art form to get it right </li></ul><ul><li>Requires in-depth understanding of various consumer variables </li></ul><ul><li>Time consuming but absolutely necessary </li></ul><ul><li>MUST take account of future! </li></ul><ul><li>Bad positioning will result in failure </li></ul>