WEEK 3-4 Flashcards
A marketing approach that involves segregating a wide-ranging target
market into subsections of patrons (shoppers and users) who have mutual
needs and common characteristics, thereby constructing and executing
approaches to be directed at their requirements and yearnings by means of media channels and other touch-points that best allow to reach the
consumers
MARKET SEGMENTATION
Obliging the needs of a specific group, distinctive marketing mix for distinct
segments.
SEGMENT MARKETING
Marketing to a solitary group, modifying the mix to their definite needs and entice them, permitting the firm to participate in relationship marketing.
NICHE MARKETING
Establishments retail compound varieties of a product; a piece alluring to a typical market segment. Differentiated strategy can generate better sales
DIFFERENTIATED MARKETING
Tailoring market mix to suit individual customers and create value for each individual
INDIVIDUAL MARKETING
THE 4Ps of Marketing Strategies
- Product 3. Place
- Price 4. Promotion
Additional 3Ps
- People
- Processes
- Physical Evidence
8 ATTRIBUTES of EFFECTIVE SEGMENTATION
- Identifiable
- Sizeable
- Unique Needs
- Measurable
- Accessible
- Profitable
- Durable
- Compatible
the distinguishing features and characteristics of the segments must be recognized and acknowledged.
IDENTIFIABLE–
the segments should be satisfactorily large enough to rationalize and validate the resources needed to target them.
SIZEABLE
the sectors must respond to take action to the unusual marketing mixes.
UNIQUE NEEDS
the prospective of the segments in addition to the upshot of a certain marketing mix should be definite and significant.
MEASURABLE
- the segments must be available via communication and distribution channels.
ACCESSIBLE
– Market segments must yield profit or financial gain for it to be feasible.
PROFITABLE
– The segments should be fairly stable, withstanding pressure, as it implies a capacity to continue and to reduce the cost of repeated modifications.
DURABLE
– Segments must be well-matched and attuned with firm’s resources and capabilities
COMPATIBLE
is the manner by which marketers make a distinction among consumers and market segments.
SEGMENT BOUNDING
Consumer market can be
segmented on the following attributes: 7
Geographic
Demographic
Psychographic
Psychological Influence
Social Influence
Marketplace Behavior
Consumption Behavior
divides a market based on location, such as country, region, or city, allowing businesses to tailor their offerings to local preferences and needs.
Geographic segmentation
divides a market based on factors like age, gender, income, education, occupation, and family size, helping businesses target specific groups with tailored products and marketing.
Demographic segmentation
divides a market based on lifestyle, values, interests, and personality traits, helping businesses target consumers based on their attitudes and behaviors rather than just demographics.
Psychographic segmentation
refers to dividing a market based on consumers’ psychological factors, such as motivations, perceptions, attitudes, beliefs, and emotional triggers. This type of segmentation aims to understand how consumers think and feel, helping businesses create more personalized and effective marketing strategies.
Psychological influence segmentation
divides a market based on social factors such as social class, lifestyle, reference groups, and social status. This approach helps businesses target consumers based on their position within society and how social influences affect their buying behavior.
Social segmentation
divides consumers based on their buying behaviors, such as purchasing patterns, brand loyalty, usage frequency, benefits sought, and decision-making processes. This approach helps businesses tailor their products and marketing efforts to specific consumer behaviors and preferences.
Market behavior segmentation
divides a broad market into smaller, distinct groups based on characteristics, needs, or behaviors. The goal is to identify and target specific groups more effectively, allowing businesses to tailor their products, marketing, and sales strategies to better meet the needs of each segment.
Full market segmentation
Transpires when a firm makes an effort to interrelate with their customers on a routine basis thereby granting them rationales to preserve a connection with the company over time.
• RELATIONSHIP MARKETING
Includes strictly tracing consumers’ buying practices, allowing them to create products personalized specifically to
the needs and wants of their patrons based on given information.
• DATABASE MARKETING
refers to an individual whereas the
latter pertains to organizations such as
manufacturers, and service providers, as well as resellers governments, and
institutions.
Customers
tend to be thin on the ground with loftier procurement quantities. Evaluation and decision process usually involve and assembly of people who are conscious of quality control mechanisms.
Industrial markets
refers to a marketing strategy that divides a market into several layers or tiers based on different criteria or characteristics. For example, a company might first segment a market by region (geographic), then further segment within that region by age and income (demographic), and then refine the segmentation by consumer preferences or purchasing behavior (psychographic/behavioral).
Multi-level segmentation
MODELS IN SEGMENTATION: 2 APPROACHES IN SEGMENTATION
Top-Down Approach
Bottom-Up Approach
The approach to market segmentation is a model where a firm begins by analyzing the entire population or market and then progressively breaks it down into smaller, more specific segments
top-down approach
The approach to market segmentation begins by focusing on smaller, more specific groups or individual customer data, often using tools like customer relationship management (CRM) software or databases. also called WHAT as it involves highly personalized targeting based on data-driven insights
bottom-up approach (Database Marketing or Micro-Marketing)
THE 4 C’s FOR SUCCESSFUL SEGMENTATION
Clarity
Consistency
Credibility
Competitiveness
– is the real goal/objective that
marketers are aiming for.
TARGET
– on the other hand is specifying the segments to pursue
MARKET TARGETING
Amongthe entire market, only a single
market segment is served with one
marketing mix
Single-segment concentration, Also known as Concentrated Strategy.
The product itself may or may not be
different– in many cases only the
promotional message or distribution channels vary.
Selective Specialization Also known as
Differentiated Strategy.
Pine (1993) used the bottom-up
approach in what he called
“????”. Though this process mass
customization is possible
Segment of One Marketing
The firm specializes in a particular product and tailors it to the different market segments.
Product Specialization
The firm specializes in serving a particular market segment and offers that segment an array of different product.
Market Specialization
The firm attempts to serve the entire
market. This coverage can be achieved by means of either a mass market strategy in which a single undifferentiated marketing mix
is offered to the entire market, or by a
differentiated strategy in which a separate marketing mix is offered to each segment.
Full market coverage
“Positioning is the act of designing the company’s offering and image to occupy
a distinct place in the target’s minds.” who said that?
Philip Kotler
Marketers need to first and foremost identify the differences of what they can offer vis-à-vis what of their competitors. Identifying the peculiarities and variations could create something unique that could be beneficial
to the firm and thus enjoying competitive advantage in the long run.
POSITIONING
Positioning may be exceptionally at par in terms of: 3
Affordability
Distinctiveness
Attractiveness
Positioning is also a relationship of two things:
- How you want your consumer perceiving you
- Your consumer’s perception of you
FULL MARKET SEGMENTATION (9)
Define the market for the organization
Create market segments
Evaluate the segments on a set criteria
Construct segment profiles
Evaluate the attractiveness of the
segments
Select target market/s
Develop positioning strategy
Develop and implement marketing mix
Review Performance
