Targeting markets & positioning

Market segmentation

Market

Market segment

Market segmentation

Customer needs/wants & the ability/willingness to buy

Subgroup of people: similar product needs & 1/more characteristics (results)

Process of dividing a market (process)

Criteria

Substantiality: Large enough

Responsiveness: Responds

Accessibility: Reachable

Identifiability/ measurability: Identifiable & size measurable

Steps

  1. Choose bases for segmenting the market
  1. Select segmentation variables
  1. Profile & analyse segments
  1. Select target markets
  1. Design, implement & maintain marketing mix for each target segment
  1. Select a market/product category

Segmentation variables (step3)

Geographic: Country/region, market/city size, market density, climate

Demographic: Age, gender, income, ethnic background, family lifestyle, lift stage, ear, household size, marital status, education, occupation

Psychographic : Personality( aggressive, ambitious), lifestyle(spend their time/ beliefs)

Benefit: Product features, needs(quality, $, convenience)

Usage-rate : Usage rate( light, medium, heavy users), user status( nonuser, regular, first time user)

Reasons (Segmentation)

Define customer needs & wants

Define objectives & allocate resources

People with different product needs & preferences

Performance can be better evaluated