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Week 6: Segmentation, targeting and positioning; the extended marketing mix
Week 6: Segmentation, targeting and positioning; the extended marketing mix
Market Segmentation
The process by which a market is divided into distinct customer subsets of people with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and strategic marketing programme
Approaches to marketing
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In practice, most organisations fit somewhere between the two extremes
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Defining The Market
A market is the set of all actual and potential buyers of a product. They share a particular need or want that can be satisfied through exchange
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Targeting: selecting one or more of the market segments and developing marketing programs (including products) that are tailored for each segment
Evaluating market segments: which segment(s) are most attractive to our organisation? Factors to consider
Segment size and growth: sales, growth rates, profits
Segment structural attractiveness: competitors, substitutes, power of buyers, power of suppliers
Company objectives and resources: objectives, resources, strengths, skills, superior value
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Positioning
Positioning is the process of creating in the mind of consumers an image, reputation or perception of the organisation or its products relative to competitors
The positioning strategy attempts to differentiate the offer from its competitors on attributes.benefits considered important by a target market/segment so that it is most appealing to that segment
Process of positioning
Determine the position that the brand and its competitors currently occupy in the minds of customers
Determine the ideal point - the position that perfectly matches the target segment's ideal attributes
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Develop a positioning strategy. Positioning statement - a clear and precise expression of how the brand is to be communicated to the market
Identifying competitive advantage: 'an advantage over competitors gained by offering consumers greater value'. Product differentiation, services differentiation, personnel differentiation, image differentiation
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The marketing mix: the controllable variables the company puts together to satisfy target markets and achieve the firm's objectives. Product, place, price, promotion
The marketing mix concept emphasizes the tactical and managerial aspects of marketing, as opposed to the broader social, organisational, competitive, and economic issues also of concern to the discipline