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Topic 5: Segmentation, Targeting and Positioning - Coggle Diagram

- - - - Step 5: Identify and Develop a Positioning Strategy
        
        through
        
        Market positioning
        
        by
        
        Defining marketing mix variables
        
        so
        
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        Value proposition
        
        communicates
        
        customer benefits to be received from a product or service
        
        7 of the Best Value Proposition Examples We’ve Ever Seen
        
        How to Write a Great Value Proposition [Infographic]
        
        for it to be successful
        
        a company’s product or service offering has to
        
        has to
        
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        focusing on either
        
        how the product or service affects the consumer
        
        how it is better than competitors’ products and services
        
        then position products and services according to
        
        Salient Attributes
        
        Symbol
        
        Value
        
        Competition
    - - Step 1: Establish the Overall Strategy or Objectives
        
        by
        
        Deriving from mission and current situation
        
        Being consistent with SWOT
      - Step 2: Use Segmentation Methods
        
        such as
        
        Demographic
        
        which can be grouped by
        
        Income
        
        Education
        
        Gender
        
        Family life cycle
        
        Age
        
        which is
        
        the most common segmentation strategy
        
        easy to reach
        
        easy to identify
        
        Demographic Segmentation: Definition, Examples & How to Use it
        
        Psychographic
        
        which can be grouped by
        
        Social Class
        
        Lifestyles
        
        Personality
        
        Attitudes and Opinions
        
        provides the
        
        richest picture of a consumer segment
        
        as
        
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        Benefits
        
        divide
        
        the market into segments whose needs and wants are best satisfied by the product benefits
        
        Example
        
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        often combined together with
        
        Behavioral
        
        often combined together with
        
        divides customers into groups
        
        based on
        
        when a product or service is purchased or consumed
        
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        degree of loyalty
        
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        how they use the product or service
        
        Geographic
        
        organizes customers into groups on the basis of where they live
        
        such as
        
        Areas within region
        
        Country
        
        State
        
        Zip Codes
        
        City
        
        Neighborhoods
        
        Region
        
        Most useful for companies whose products satisfy needs that vary by region.
        
        often combined together with
        
        What Is Geographic Segmentation & How Can You Apply It in Campaigns?
      - How Top Brands Use Market Segmentation to Reach Customers
    - - Step 4: Select the Target Market
        
        via targeting strategies
        
        Differentiated
        
        used to
        
        target several market segments with a different offering for each
        
        Examples
        
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        Concentrated
        
        used when
        
        an organization selects a primary target market and focuses all its energies on providing a product to fit that market’s needs
        
        Example
        
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        Undifferentiated/Mass Marketing
        
        used when
        
        everyone might be considered a potential user of its product
        
        Examples
        
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        Micromarketing/ One-to-one/ Customization
        
        used when
        
        a firm tailors a product or service to suit an individual customer’s wants or needs
        
        Example
        
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      - Step 3: Evaluate Segment Attractiveness
        
        by considering if the segment is
        
        Identifiable
        
        Does each segment require a unique marketing mix
        
        Who is in their market
        
        Are the segments unique
        
        Profitable
        
        key factors
        
        Market growth
        
        current size and expected growth rate
        
        Market access
        
        brand familiarity
        
        ease of developing or accessing distribution channels
        
        Market competitiveness
        
        number of competitors
        
        product substitutes
        
        barriers to entry
        
        Substantial
        
        Too big and it might need its own store
        
        Too small and it is insignificant
        
        Responsive
        
        If the firm can’t provide products/services to segment
        
        it should not be targeted
        
        customers should
        
        React positively to firm’s offering
        
        React similarly to firm’s offering
        
        Reachable
        
        Recognize how to buy
        
        Understand what it can do
        
        Know the product exists
- - - - it displays
        
        in two or more dimensions
        
        the position of products or brands in the consumer’s mind
    - - Identify competitors’ positions
      - Determine consumer preferences
      - Identify the market’s ideal points and size
      - Select the position
      - Determine consumers’ perceptions and evaluations in relation to competitors’
      - Monitor the positioning strategy