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
- Choose bases for segmenting the market
- Select segmentation variables
- Profile & analyse segments
- Select target markets
- Design, implement & maintain marketing mix for each target segment
- 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