Please enable JavaScript.

Coggle requires JavaScript to display documents.

MARKET SEGMENTATION, TARGETING AND POSITIONING - Coggle Diagram

- - - - Market is organised by customer living locations (e.g. country,region,areas within region and zip codes)
        
        Useful for companies with products that satisfy needs that vary by region
    - - Market is organised into demographic variables like age, gender, income level, education level
        
        Demographically defined segments are the easiest to reach by companies
        
        Different marketing approaches for people of different age and life cycles
    - - Market is organised into characteristics that define customer's behaviour and psychological reasons that cause their decisions
        
        Personality
        
        Social Class
        
        This particular organisation of the market helps marketers in companies to know their customer base better
        
        Lifestyles
        
        Attitudes and Opinions
    - - Market is organised into segments whose needs and wants are best satisfied by the product's benefits
    - - Market is organised into groups based on how customers use the product
        
        Loyalty Segmentation
        
        Loyal customers who feel like the brand they are using fulfills all their requirements of the product perfectly that they don't buy from other firms
        
        Occasion Segmentation
        
        Based on when a product is consumed
        
        A big pack of chips for an evening snack for a single person vs 16 small packs to give out during parties
- - - - How companies determine whether a segment is attractive
        
        Identifiable
        
        Important so that companies know who they are designing their products for and whether distinct marketing strategies are necessary
        
        Are the segments unique?
        
        Does each segment require a unique marketing mix?
        
        Who is in the market?
        
        Substantial
        
        Important to check if the market is big and spending power significant
        
        Too small and it will become insignificant
        
        Too big and it could need its own store
        
        Reachable
        
        Persuasive communication and effective product distribution required so it impacts customers, meaning customers know the existence of the product, what the product is for and how to buy it
        
        Responsive
        
        Customer react positively to firm's offering
        
        Customers react similarly to firm's offering
        
        If the company can't provide products to a segment it should not be targeted to the segment
        
        Profitable
        
        An attractive segment today may not be attractive many years down the road
        
        Check market growth
        
        Check market competitiveness
        
        Check market access
  - - - When everyone can be the customer of a product (e.g. rice) the targeting strategy is undifferentiated
    - - Targets several market segments with a different value proposition to each
    - - Company selects a main target market to focus on a product that caters to all of the market's needs
    - - Tailoring a product to suit an individual's wants and needs
      - Company manufactures on a demand basis
- - - - In terms of value
      - In terms of salient attributes
      - In terms of symbol
      - In terms of competition
    - - Determine consumers’ perceptions and evaluations in relation to competitors’
      - Identify the market’s ideal points and size
      - Identify competitors’ positions
      - Determine consumer preferences
      - Select the position
      - Monitor the positioning strategy