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Topic 8 Market Segmentation and Positioning (Segmentation Benefits (Better…
Topic 8 Market Segmentation and Positioning
The STP Process
Method of subdividing whole markets into different segments
Segmentation
Targeting
Positioning
Customer Driven Marketing Strategy
Market Segmentation
Dividing a market into smaller segments with distinct needs, characteristics, or behaviours, that might require separate marketing strategies or mixes
Segmentation criteria and methods are chosen
Market segment profiles are developed
Segmenting International Markets
Variables include:
Geographic location
Economic Factors
Political and Legal Factors
Cultural Factors
Segmentation Benefits
Better understanding of customer types
Better service provision
Better competitor analysis
Improved resource allocation
Better strategic marketing planning
Segmenting Business Markets
Consumer and business marketers use many of the same variables to segment their markets . Additional variables include:
Customer Operating Characteristics
Purchasing Approaches
Situational factors
Personal Characteristics
Intermarket (Cross Market) Segmentation
Grouping consumers with similar needs and buying behaviours irrespective of their location
Segmentation Requirements
Measurable
Accessible
Substantial
Differentiable
Actionable
Market Targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Differentiation and Positioning
Product position is the way the product is defined by consumers on important attributes