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Segmentation, Targeting and Positioning, Step 1, Step 2, Step 3, Step 4,…
Segmentation, Targeting and Positioning
Establish strategy or objectives
Use segmentation methods
Evaluate segment attractiveness
Select the target market
Identify & develop a positioning strategy
Market positioning
Defining marketing mix variables so target customers have a clear, distinctive understanding of what product does.
Positioning methods
Salient Attributes
Symbol
Competition
Value
Perceptual Maps
displays in two or more dimensions, the position of products or brands in the consumer’s mind
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Value proposition
Communicates the customer benefits to be received from a product or service
For successful value proposition, a company’s product or service offering should overlap with customer needs and wants but not overlap with competitors’ offerings
the marketer’s ability to pursue such an opportunity or target segment
Undifferentiated/Mass Marketing
Undifferentiated products are identical products and can be substitutable by products from any other suppliers
eg. Basic kinds of sugar (Home)
Differentiated
This strategy targets several market segments with a different offering for each. Companies use this strategy to help them obtain a bigger share of the market and increase the market for their products overall
eg. Different variations of salt for food and bath purposes (Sea)
Concentrated
Organizations who select a single target market and focuses all resources on providing a product to fit that market’s needs
eg. Bulk Food stores (Zero)
Micromarketing/One-to-one/Customisation
Tailoring a product or service to suit an individual customer’s wants or needs and the company only manufactures the product when there is an order from a customer
eg. Custom earpieces (Custom)
Identifiable
Substantial
Reachable
Responsive
Profitable
current market growth and expected growth rate
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Positive responses are garnered from customers to firm's offering
If firm can’t provide products/services to segment, it shouldn’t be targeted
Customers are aware of the product/service's existence
understands its purpose
knows how to buy it
size of market
Small markets are insignificant
Big markets require establishments
Identify who is within their market to be able to design products or services to meet their needs
ensure that the segments are distinct from one another
Market Segment Attractiveness (Kokemuller, 2016)
Firms choose from various methods on the basis of the type of product/service they offer and their goals for the segmentation strategy
Demographic
eg. age, gender, income, education
most common strategy for its ease of reach and identification
Psychographic
eg. lifestyle, self-concept, self-values
categorized based on personal characteristics that occupy a person's time
Benefits
eg. convenience, economy, prestige
differentiated based on users different needs and wants
Behavioral
eg. occasion, loyalty
differentiated based on how users use a product/service
Occasion segmentation
Loyalty segmentation
Brand loyalty based on the brands customers choose to frequent/only buy
Based on when a product or service is purchased or consumed
eg. Chinese New Year clothes
Geographic
eg. states, continents and regions
Marketing Segmentation (What, 2020)
articulating the vision or objectives of the company’s marketing strategy clearly
being consistent with the firm’s mission statement and be based on the current assessments from SWOT analyses
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