Market Segmentation and Positioning

Annotations:

• Identifying individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy.

1. Benefits of Market Segmentation
   1. Target market selection

      Annotations:

      • A single marketing mix strategy can be developed to match the similar requirements of those in the target market.
   2. Tailored marketing mix

      Annotations:

      • Allows the grouping of customers based upon similarities that are important when designing marketing strategies.
   3. Differentiation

      Annotations:

      • Target several market segments and develop separate marketing mixes for each.
   4. Opportunities and threats

      Annotations:

      • The company that first spots a new under-served market segment and meets its needs better than the competition can find itself on a sales and profit growth trajectory.
2. The Process
   1. 1. Characteristics of individuals customers are understood
      1. 2. Customers grouped into segments on the basis of having similar characteristics
         1. 3. One or more segments are chosen for targeting and a marketing mix strategy is designed for that target market(s)
3. Segmenting Consumer Markets
   1. Behavioural
      1. Benefits sought

         Annotations:

         • Convenience Status Performance Price
      2. Purchase occasion

         Annotations:

         • Self-buy Gift Special occasions Eating occasions
      3. Purchase behaviour

         Annotations:

         • Brand loyalty Innovators Solus buying
      4. Usage

         Annotations:

         • Heavy users Light users Non-users
      5. Perceptions, beliefs and values

         Annotations:

         • Favourable Unfavourable
   2. Psychographic
      1. Lifestyle
      2. Personality
   3. Profile
      1. Demographic

         Annotations:

         • Age Gender Life cycle
      2. Socio-economic

         Annotations:

         • Social class Terminal education age Income
      3. Geographic

         Annotations:

         • Geodemographic
4. Segmenting Organisational Markets
   1. Macrosegmentation
      1. Organisational size

         Annotations:

         • Large Medium Small
      2. Industry

         Annotations:

         • Engineering Textiles Banking
      3. Geographic location

         Annotations:

         • Local National European Global
   2. Microsegmentation
      1. Choice criteria

         Annotations:

         • Economic value Delivery Price Service
      2. Decision-making unit structure

         Annotations:

         • Complex Simple
      3. Decision-making process

         Annotations:

         • Long Short
      4. Buy class

         Annotations:

         • Straight rebuy Modified rebuy New task
      5. Purchasing organisation

         Annotations:

         • Centralised Decentralised
      6. Organisational innovativeness

         Annotations:

         • Innovator Follower Laggard
5. Target Marketing
   1. Market Awareness
      1. Market factors

         Annotations:

         • Segment size Segment growth rate Segment profitability Price sensitivity Bargaining power of customers Bargaining power of suppliers Barriers to market segment entry Barriers to market segment exit
      2. Competitive factors

         Annotations:

         • Nature of competition New entrants Competitive differentiation
      3. Political, social and environmental factors

         Annotations:

         • Political issues Social trends Environmental issues
   2. Strategies
      1. Undifferentiated marketing
      2. Customised marketing
      3. Focussed marketing
      4. Differentiated marketing
6. Positioning
   1. 3. Differential advantage
   2. 2. Target market
   3. 1. Market segmentation
   4. Successful Positioning
      1. Clarity
      2. Consistency
      3. Credibility
      4. Competitiveness
   5. Repositioning
      1. Image repositioning
      2. Product repositioning
      3. Intangible repositioning
      4. Tangible repositioning