Ppl or Org with
1. Needs/Wants
2. Willingness to buy
3. Ability to buy
Market
Subgroup of ppl/org sharing characteristics of similar needs
Market Segment
Dividing market into meaningful/smaller/identifiable segments, enable marketers to tailor marketing mixes
Market Segmentation
Importance of Market Segmentation
- Identify Cx groups w/ similar needs
- Design Mktg mixes
- Define Mktg objectives & Allocate resources
- Consistent w/ Mktg concept
Bases for Segmenting Markets Geographically
- Region of the World
- Region of the Country
- Market Size
- Market Density
- Climate
4 Basic Criteria for Effective Segmentation
- Substantiality
large enough market/potential Cx - Identifiability / Measurability
population & size - Accessibility
target members reachable - Responsiveness
use logical criteria/unless a segment responds to mix differently
Bases for Segmenting Consumer Markets
- Geographic
- Demographic
- Psychographic
personality/motives/lifestyles/geodemographics - Benefit
benefit seeking e.g. autism - Usage-Rate
product amt bought/ consumed
___ segmentation
- clusters potential Cx into neighbourhood lifestyle categories
- combines geographic/ demographic/ lifestyle segmt.
Geodemographic
under psychographic segmt.
Demographic Segmentations
- Age
- Gender
- Income
- Ethnic Bkgrd
- Occupation
- Family Life Cycle
Psychographic Segmentation
- Personality
- Motives
- Lifestyles
- GeoDemographic
Example: Canada Goose
Benefit Segmentation
Grouping Cx based on
Benefit they seek
Cx needs/wants
e.g. autism
Usage-Rate Segmentation
Based on Amount of Products
bought/consumed
Users: Heavy/med/former/potential/1st-time/light/irregular
Pareto Principal
80/20 Rule
20% Cx generate 80% demand
Heavy users
Bases for Segmenting Business Markets
- Company Characteristics
- Geographic location
- Type/Size of Company
- Product Use
- Type of Cx
- Usage Rate
- Buying org.’s structure
- How product is used - Buying Process
- Purchase Criteria
- Purchase Strategies
a. Satisfiers
b. Optimizers
- Buyer’s Personal Characteristics
Steps in Segmenting a Market
- Select a Market/Product Category
- Choose Segmenting Bases
- Select Segm. Descriptors
i.e. specific segm. variables - Profile & Analyze Segments
- Select Target Markets
- Design/Implement/Maintain Mix
Group for which a Mktg Mix is designed/implemented/maintained, result in satisfying exchanges
Target Market
Target Marketing Strategies
& Pros/Cons
- Undifferentiated Targeting
cost-saving/low competency - Concentrated Targeting
narrowly defined/too small - MultiSegment Targeting
financial success & economies of scale/high cost & cannibalization - 1-to-1 Targeting
highly customized & loyal/high cost
Sales of New Products
cut into
Sales of Existing Products
Cannibalization
產品競食
A process that influences potential Cxs’ perception of a brand/product/org
Positioning
Effective Positioning requires
- Assess position of competing product
- Determine dim.s underlying the positions
- Choose position the Mktg efforts make greatest impact
7 Positioning Bases
- Attribute
feature - Price & Quality
$=quality - Use/Application
- Product User
personality - Product Class
categorize - Competitor
against - Emotion
feel
Changing the Cx’s perception of brand in relation to competing brands
Repositioning
Guidelines for developing
Positioning Statement
- Targeted Cx
Cx’s description - Frame of Reference
product benefit & how it’s used - Point of Difference
why superior - Reason to believe
evidence of frame of ref
- Sustain growth in slow market
- Correct positioning mistakes
- Changing Cx’s perceptions of a brand
by ___
RePositioning
