Segmentation (Targeting and positioning (Attractiveness factors (Market…
Targeting and positioning
Re positioning strategies
Tangible re-positioning Change both the product (attributes) and the target market
Image Re-positioning: keep the product and target market but change the image
Intangible re-positioning: Same product but different target market
Product re-positioning: Change the tangible attributes and then communicate the new proposition to the same target market
the way in which a brand is communicated and how consumers perceive the brand relative to other competing brands in the market place.
the functionality and capability that a brand offers.
Marketers plan positions that help give their products the greatest advantage in selected markets ; to gain more knowledge and then adjust their product accordingly to meet information gained.
Select segments to target
If resources are limited the company will tend to adopt a concentrated marketing approach. A higher level of resourcing coupled with a range of segments to approach will lead to a differentiated approach . A simple ‘made-for-everybody’ type product will lead to an undifferentiated approach.
Works if you have a big market – universal appeal, many direct competitors and the profit margin is small.
Concentrated/ focused marketing
Single segment -be the very best in a single tiny segment. Also referred to as niche marketing – meeting an unmet need.
Develop a single marketing mix for all segments. – ignore that there are segments! A scattergun approach. Firm is offering a basic product that would be used by almost all age groups and lifestyles . E.g. Petrol is largely undifferentiated. Traditionally milk and white bread and soft drinks. But nowadays there are many segments for these product categories.
multi-segmented -Targeting 2 or more segments by offering a differentiated marketing mix for each
Each of these attractiveness factors is rated on a scale of 0-10 and loosely categorised as high, medium or low in attractiveness VS Capability of the company
Competitive intensity within the segment
We live in a information rich society and statistics are collected on many different things. Acorn tries to bring all the relevant statistics together to provide a complete picture.
Using population census data to classify consumers by location and demographic data
Investigate segmentation bases
Successful segmentation criteria
Measurability, accessibility, substantiality, differentiability, actionability (Kotler, P. 1991)
Understand the individual customers (quantitative or qualitative research – find out their categories, and understand their experiences)
Group the customers based on similar characteristics – music, sport
Design a (or multiple) marketing mix(es) – product, price, distribution & promotion mix to differentiate
Choose the segment group
What is market segmentation
Provides a systematic approach to market coverage - market opportunities will not be missed
Enables a business to identify key competitors
Can address the diversity that exists in a population
Cost-efficient marketing strategies
Identify different types of consumers: identify their needs. Identify an unmet need and than consider a product offering that adds value.
Make new products, adapt products (an idea in the lab, a reaction to competitor), and find a segment for these products (high chance of failure because the needs of customers are not taking into considerations)
Markets are assumed to be heterogeneous. Market segmentation is means of viewing a heterogeneous market as several smaller homogeneous markets
This is the starting point for marketing: (and it relates to anything we can market, products, service i.e. travel, social behaviour i.e. recycling)