Class 6: Segmentation, Targeting, Positioning Flashcards
Market segmentation
process of aggregating prospective buyers into distinct groups that have similar wants/needs
and the people who will respond similarly to marketing action
why do we have a need for semgmentation?
- identify homogenous groups in hetero market
- align marketing mix to consumer dmands
- efficient resource allocation
segmentation bases
geographic: where are they say
demograpihc: eho are they
psychographic: what are they like
behavioural: how do they respond
most effective segmentation? least effective segmentation?
it just means more sepecific or actionable
behavioural to geographic
geographic segmentation steps
country, region, climate, pop size, community, pop centre
demographic segmentation
age
gender
education
occupation: blue collar/white collar
income: discretionary
marital status
family life cycle
psychographic segmentation
dividng a market based on social class/lifestyle/personality
lifestyle: interests, activities, opinions
personality: characterics that form behvaiour
use enviornics PRIZM segment!
behavioural segmentation
grouping buyers based on attitudes towards use of , or response to a prdoct class (like class like soft drinks/pasta sauces)
- usuage based (nonuser, regualr)
- occasion based (social setting, personal)
- loyaltly status (none. hardcore, split)
- benefits sought (physical,emotonal,mental)
segment requirements
- measurable (quantifiableidentifiable): use stats canada
- meaninfgul: accesible, substantial, differentiable
marketable: actiinable/responsive
targeting strategy
how do you wanna target that group you segmented for?
taarget strategy: mass market
undifferentiated market (common product)
taarget strategy: differentiated market
segemneted market (unique product offering for each of several segments)
like cars
taarget strategy: concetnerated market
niche market/ focusing firms effort on unique segment
taarget strategy: micro market
individual/loca mareting
mass customization
how to choose a targeting strategy
- external eval: market vairabiltiy,competitors strategies
- internal eval: product variability, resource limitiatons
- social responsinility: vulneerabl and disadv consumers need to be protected
product positioning
place an offering occurpies in consumers mind on improtant attributes relative to competitive offerings
what are some appraoches to product positioning
head to head positioning: ocmpeting directly with other on similar attributes for same trarte market
differentiation positoning: seeking a less competitive market in which to locate a brand
strategies for product positioning
- cost leadership: race to the bottom (lowest price offiering!!), if you dont become the cost leader you are stuck in the middle
- differentiatiors: unique selling proposition!! this is the other way :) availability, status and image
are you gonna be a cos leader or differentiator?
cost/price-based pisitioning
positioning on price relative to competing products!!
-> requires a lot!! there can only be one cost leader!!!
so:
- economies of scale are needed
- experience is needed (experience curve)
- requires knowledge o competitors cost structure!
attribute based positiotning
if you are positionoing based on superior attributed! you need to generate CUSTOMER VALUE ON CRITICAL PRODUCT ATTIRBUTES!!
difficult to imitate other companies
augmented based positioning
an observable point of difference that cadds value for which customers are willing to pay more
occur at points of difference:
1. warratny, customer servce, logistics, reputation, financing
the mentalty is to AVOID THE COMMODITY MENTALTY (lowest price is not always the most important)
perception pbased piositioning
perceptual difference are created when actual difference are small, hard to achieve, difficult ot sustem or difficult to verify
“the perception is the reality:, product are created in the factory, brand is in the mind
value based postiioning
full mix of benefits upon which the product/brand is differentiaed and positioning
on product= a bundle of benefits
value= benefits at a given price
A: more for more $$$ (more expensive but more value)
B: more for the same/less $$$
C: Same for Less $$$ (category killers like walmart)
D: Less for much Less $$$ (dollar store)
DISPOSABLE INCOME: income after tax!!! the money you have for needs
DISCRETIONARY INCOME: income that yoiu spend on entertainment etc
DONT GET CAUGHT THINKING ABOUT THE PRODUCT!!!! FOCUS ON THE NEED!!!!!!! is the need a requirement of living? OR IS IT A CHOICE??????
