Module 2.1 - Market targeting and segmentation The SENSES project co-funded by the European Union funds (ERDF and IPA) For more information check the official website: http://www.interreg-danube.eu/senses

1. Module 2.1.
Practical marketing tools for social
enterprises
Ing. Iveta Brouckova, Ph.D
RERA - Regional Development Agency of South Bohemia
CZECH REPUBLIK
2018
Project co-funded by the European
Union funds (ERDF and IPA)

2. 2.1.1. Market targeting and
segmentation
I

3. Market
• in general - space, where the exchange of goods and/or finances take place
• the exchange happens between two subjects, the market is created by at
least three (creation of competition)
• in marketing - the market is economically interesting space, where
marketing activities target economic buying power
• types of markets:
– regarding buyers - markets for use of products or services of the
company
– regarding employees - labour market
– regarding investors or other providers of financial sources - financial
sources market or share market
– regarding suppliers - market with services, products or components
Project co-funded by the European
Union funds (ERDF and IPA)

4. Market characteristics
• during the evaluation of the market it is important to monitor:
– subject of demand - what customers want
– size and its potential
– competition - especially information about quantity, strength, power and
possibilities of other competitors entering the market
– development - e.g. growth, prices, sensitivity on price, etc.
Project co-funded by the European
Union funds (ERDF and IPA)
Market

5. Market specifics and differences
• B2B - Business to Business - business relationship between two business parties
• B2C - Business to Customer - market with the focus on end customer
Project co-funded by the European
Union funds (ERDF and IPA)
B2C – Business to
customer
lower commitment
B2B – Business to
business
bigger commitment
purchase
motivation
for personal use purpose = own profit
target group wide spectrum narrower, Niche
buying behaviour
and sale cycle
impulsive decision, based of
emotions, shorter cycles
rational decision and
purchase speculation,
longer cycle
volume of purchase for personal use bigger quantity
influencing the
demand
influencing of the price =
influencing of sales
demand based on the
number of own contracts
sales driver recognition and repetition
relationships and detailed
information
Market

6. Market access from a marketing perspective
• undifferentiated marketing = united segmentation strategy
– differences between single segments are not taken into consideration
– minimal differences in marketing activities
– united marketing mix
• differentiated marketing
– supply is adjusted to targeted segments
• targeted (concentrated) marketing
– orientation on the certain part of the market (segments, microsegments)
– marketing mix is created for every market segment
Project co-funded by the European
Union funds (ERDF and IPA)
Market

7. Phases:
• Market segmentation
• Targeting
• Positioning
Project co-funded by the European
Union funds (ERDF and IPA)
Segmentation Targeting Positioning
Decision on
Marketing mix
composition
Targeted marketing

8. • market segmentation into individual segments, homogenised groups that
differs with its needs, characteristics and behaviour
• the aim is to get to know the structure of the market, where the company
wants to place its product or service
• it serves for adjustment of marketing activities towards single customers
groups (so-called market segments) to maximize the satisfaction of their
needs
• the company choose only those segments that are interesting and effective
with respect to the creation of profit
• chosen segments should be as similar as possible regarding its behaviour
on the market (homogeneity of the market) and at the same time should be
between each other as different as possible (heterogeneity of the market)
Project co-funded by the European
Union funds (ERDF and IPA)
Market segmentation

9. Segmentation criteria
• segmentation of customer’s market
– geographical - according to the locality where they are situated
– demographical - according to age, gender, profession, income,
education and other demographic indicators
– psycho-graphically - according to lifestyle, personal characteristics, etc.
– behaviourally - according to behaviour, attitude, knowledge or opinion of
certain products
• criteria concerning B2B markets can be added:
– character of the company - according to sector, field, area of operating,
size, company’s culture, etc.
– operational characteristics - according to the type of production, the
urgency of the supplies, considered quality
– purchase behaviour - purchase strategy, politics, purchase criteria, etc.
Project co-funded by the European
Union funds (ERDF and IPA)
Market segmentation

10. • process of market segments selection - attractiveness of single segments is
evaluated and one or more final segment is chosen
• target of most suitable segments for the company
• key criteria:
– size of the segment - number of potential customers
– growth potential of the segment - growth forecast regarding the number
of customers in the next period
– attractiveness of the segment - purchase force of the potential
customers, threats of competitors entering the market, the possibility of
substitutes and eventually price of components
Project co-funded by the European
Union funds (ERDF and IPA)
Targeting

11. Targeting types:
• from top to bottom approach - data about customers on certain market are
analysed and unsuitable groups are gradually removed
• bottom-up approach - targeting according to product and possibilities of the
company (e.g. company has the ability to distribute product or service on
restricted geographical area, according to calculation a certain number of
customers is needed to cover the expenses, etc.)
• based on analogy approach - estimation of targeted market according to
products details - competitive or idealized
Project co-funded by the European
Union funds (ERDF and IPA)
Targeting

12. • construction of desirable position in the mind on targeted customer (clear
and evident separation of the product from others is needed)
• it is perception placement into minds of the customers through brand
• the aim is to create perceptions, opinions and attitudes in the minds of
costumers related to the brand of the product/service or the company and
to create unique image of the product/service/company/brand.
• to create suitable placement adequate communication strategy if needed
Project co-funded by the European
Union funds (ERDF and IPA)
Positioning

13. Criteria of positioning:
• points of difference (POD) - attributes or advantages, that customers
connects with the brand and are positively evaluated and are loyal to it
• points of parity (POP) - association that don’t have to assigned to only
one brand, but can be shared by other brands as well
– POP connected to category - associations that are considered
important, because without them the brand would not be considered
as reliable (e.g.: the need for pleasant staff in café)
– POP connected to competition - association that is nagging
differences between them and competitors (if the competitor is
strong and the difference between
companies/brands/products/services is not very clear, it can bring
advantages to weaker competition)
Project co-funded by the European
Union funds (ERDF and IPA)
Positioning