Market segmenting (segmenting)
A group of ppl similar on one or more dimensions relevant to product or service
Process of grouping similar customers in a market according to several variables
Target market (targeting)
Segment most aggressively pursued
Market position (positioning)
The way a product is perceived relative to the competition in consumers minds
Marketers develop a strategy of product _______ to make them stand out
Differentiation
Segmenting types
Geographic
Demographic (age gender family size job. Etc. )
-anything stays can tracks
-Age and life cycle segmenting
——targeting stuff to life cycle
Psychographic segmentation
-social class. Personality. Lifestyle. -Based on AIO
Benefit segmentation
-determined by asking customer
-ex. Vacuum good for pet hair is for pet owner
Effective segmentation must be
Measurable (numbers)
Différentiable (unique and has similarities different to others)
Accessible(your able to reach the segment)
Substantial(segment is large enough to support business if targeted)
Actionable(able to pursue and capture the market)
Segmentation strategies
Mass marketing
Large market
Single offer
Focus on what consumers have in common
Segmentation strategies
Differentiated
Large market
Multi offer
Focus on consumer difference SAN
Segmentation strategies
Niche
Marketing limited product line to a narrow but profitable segment
Single offer
Segment that you are targeting is of marginal interest to competitors
Segmentation strategies
Indivualized
Customizing offers to individuals
Often see this with bundle option
Tailored vacation packages
Primary vs secondary target market
Primary
-segment most attractive and that ur value proposition and offering is most likely to appeal to
Secondary
-potential customers or influencers of your primary target market
Target market profile
Make a fake person who would buy ur shit
Segmentation supports
Think through
-who is the product not meant for
-a day in the life
Get in depth and creative
Steps in segmentation
I deride consumer needs and common characteristics in the market
Cluster common consumer variables to create meaningful target market December’s
Estimate size and feasibility of each segment
Identify the segment to be targeted
Take action with marketing programs to reach the segments
Monitor and evaluate success of those programs compared with objectives
Positioning
To appeal to a certain target groups and to present a particular image relative to the competition
-impression of a branded product in consumers minds
Attributes. Benefits. And needs
Attributes deliver benefit which satisfy needs
Ex
Theme park:
Attribute (supervised paddle pool)
Benefit (toddlers play safely)
Need (entertaining young kids)
Target segment (families with young kids)
Positioning statement
Outline the positioning of a product and manage the marketing mix to meet this image
When do companies reposition
When long term customer attitudes / interests have changed
3 basic factors that tend to surface in product positioning
Image
-say they’re leaders. Contenders. Rebels. Etc or trusted. Prestigious. Cheap
Product attributes
-how the products are different
Positioning statement examples
For (target segment) who desire (need), (brand) is the (product category) that offers (product benefits).
To (target segment) who seek (key benefits), (offering) is an excellent (product category) because (justification of benefit).
Factors to use in positioning
Tangible attributes
-physical characteristics. Price
Intangible characteristics
-quality. Style. Reliability. Safety
In positioning try not to default to price and quality
Price isn’t always on of the first considerations
No one wants a low quality product
Products positing opportunities for market research
- Identify important attributes for a product of brand class
- Discover how target customers rate competing products with respect to these attributes
- Discover where the company’s product or brand is on these attributes in the mind of potential buyers
Positioning map
Compare 2 attributes on x and y axis
Friendly or reserved customer service and stylish or functional furniture
Leon’s is friendly and kinda functional
Urban barn is stylish and kinda reserved customer service.
U wanna find a place with an empty space in the chart for your business
