Please enable JavaScript.
Coggle requires JavaScript to display documents.
Segmentation, Targeting and Positioning - Coggle Diagram
Segmentation, Targeting and Positioning
Segmentation
1) Establish objectives / strategy
Consistent with firm's mission statement
Consistent with SWOT analyses
2) Use segmentation methods
Geographic
Organize customers based on where they live
Demographic
Group customers based on easily measured and objective characteristics
Age
Gender
Income
Education
Psychographic
Group customers based on
Personality
Social class
Lifestyle
Useful where the user's self-image is important
Attitudes and opinions
Benefits
Group customers based on the benefits they get from the products or services
Behavioral
Group customers based on how they use the product / service
Occasion segmentation
Based on when item is purchased
Loyalty segmentation
Based on loyalty status of customers
Completely loyal customers
Buy 1 brand all the time
Somewhat loyal
Loyal to 2 or 3 brands of a product
Not loyal to any
Buy something different each time
Buy whatever is on sale
Targeting
3) Evaluate segment attractiveness
Identifiable
Identify who is within the market
Substantial
Market must not be too small or too big
Reachable
Customer must know that the product exists, understand what it can do, and recognize how to buy it
Responsive
Customers must react positively to firm's offering
Profitable
Market growth
Market competitiveness
Market access
4) Select the target market
Targeting strategies
Mass marketing
Everyone can be a potential user of the product
Compete on price and availability of product
Differentiated
Target several markets with differing offers for each
Diversify business and lower company's overall risk
Concentrated
Focus on meeting specific market's needs
Micromarketing / One-to-one marketing
Tailors product / service to meet an individual customer's needs
Product is manufactured only when there is an order from a customer
Positioning
5) Identify and develop a positioning strategy
Market positioning
Defining marketing mix variables so target customers have a clear understanding of product
Positioning Methods
Value
Salient Attributes
Symbol
Against competition
Perceptual Map
Displays in 2 or more dimensions, the position of products/brands
in consumer's mind
1) Determine consumers' perceptions in comparison to competitors'
2) Identify market's ideal points and size
3) Identify competitors' positions
4) Determine consumer preferences
5) Select the position
6) Monitor positioning strategy
Value proposition
Convey customer benefits to be received from product / service
Ideal when a company's product overlaps with customer needs but doesn't overlap with competitors' offerings