MAR4 - Markets Segmentation, Targeting and Positioning PDF

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MAR4 - Markets Segmentation, Targeting and Positioning...

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Markets: Segmentation, Targeting and Positioning ●

23/8/20

Market: Group of customers with heterogeneous needs and wants ○ Org = clear target market

Segmentation, Targeting and Positioning - McDonald’s: ● Marketing strategy → Brand manager vs segment managers ●

Segment managers → Insights on values, needs and lifestyles. Connecting to products and ads

Different market characteristics ● Mass marketing: Buyers have common wants, needs and demands ● One-to-one marketing: Buyers have unique wants, needs and demands ● Market contains subgroups: Target marketing: target specific subgroups ● Market segments: Subgroups within the total market that are relatively similar in regards to certain characteristics Mass marketing ● Mass marketing: Single product will meet the needs of most people in the market (undifferentiated approach) ● Producing large volumes at a low cost per unit (economies of scale) ○ Usually involves large investments into production ○ Usually leads to few sustainable companies ■ Commodities: Salt, copper, stationery products, medical products, etc One-to-one marketing ● One-to-one marketing: Providing a unique, customised offering to meet individual customer needs. ● Higher unit costs and a more restricted market ○ When consumers are willing to pay extra for customized service / product (e.g. hair stylists) Target marketing ● Target marketing: Involves developing a different marketing mix for each target market segment ○ When organizations want to capture large numbers of customers, but lacks resources to mass produce or engage in one-to-one marketing ● Market segmentation forms the basis of target marketing ○ Scammers target their market segment by filtering out those who aren’t likely to fall for the scam in the first place

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How to implement differentiated marketing ● Product specialisation: Offering a single product range to a number of market segments. ○ Rolex: watches for different market segments ● Market specialisation: Focused on meeting a wide range of needs within a particular market segment. ○ Childcare centers: teaching, feedings, nurturing children ● Product-market specialisation: Offering a single product to a single market segment. Target marketing process (STP)

Market segmentation

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Segmentation variables: Characteristics that buyers have in common and that might be related to their purchasing behaviour Segmenting consumer markets: Geographic, demographic, psychographic, behavioural Geographic segmentation: Climate, urban vs suburban vs rural, local population and region Demographic segmentation: Age, education, income Psychographic segmentation: Lifestyle, motive, personality attributes ○ Patagonia clothing: Outdoor fanatics who are environmentally conscious. Product and corporate culture aligns with its philosophy Behavioural segmentation: Actual purchase and/or consumption behaviours. Brand loyalty, occasion, price sensitivity, volume usage Marketing targeting: Selection of target markets resulting from an evaluation of identified market segments ○ SWOT analysis

Positioning ● Market positioning: The way in which target segments perceive an organisation’s offering in relation to competing offerings. ○ Company positioning: A positioning strategy designed to create a single market perception of the organisation in relation to competitors. ■ Apple vs. Microsoft ● Brand positioning: A positioning strategy designed to create a market perception of a particular brand, usually based on product attributes. ■ Lexus vs. Toyota

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