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Market Segmentation, Targeting and Positioning, 3 Relevant Readings -…

- - - - Taken from the current objective
      - Consistent with SWOT analysis
  - - - Market can be grouped by:
        
        Country
        
        Region
        
        Areas within region
        
        State, cities, neighbourhoods
      - It is based on where the market lives.
    - - Market can be grouped by:
        
        Age
        
        Gender
        
        Income
        
        Education
      - This is the most common segmentation
      - It is also the easiest to reach and identify
    - - Market can be grouped by:
        
        Personality
        
        Social Class
        
        Lifestyle
        
        Attitudes and Opinions
      - This allows people to describe themselves using characteristics
        
        This would then affect their behavior as there are underlying psychological reasons for their choices
    - - This segment is based on the benefits that consumers receive when they buy a good or service
        
        The market is divided into how the consumers needs and wants are best satisfied
    - - The market is divided into groups based on how they use the product or service
      - Occasion segmentation
        
        This segmentation is based on when a product or service is purchased
        
        Clothes
        
        Snacks
        
        Food
      - Loyalty Segmentation
        
        The market is loyal to a product and does not use a substitude
        
        Airlines
        
        Petrol stations
        
        Restaurants
        
        Hotels
        
        Phone brand
- - - - Businesses must identify who is in their market
      - Business must ensure that segments are different from one another
      - Businesses will analyze and see if each segment needs a unique marketing mix
    - - Finding a market does not mean it is a good market
      - If the market is too small or has little buying power, it will not generate profits
      - Or if the market is too big, it might need a store
    - - The market must know that the product/service exists
      - The market must understand what the product/service can do
      - The market must know how they can buy the product/service
    - - The market must react positively to the firm's offerings
      - If the business cannot provide product/service to the market, the market should not be targeted.
    - - Businesses will have to check on Market growth to see if it is profitable
        
        There will be little profits if there is little market growth
      - Market competitiveness to see the numbers of competitors or barriers to entry
      - Market access for distribution channels, brand familiarity
- - - - Differentiated
        
        This strategy targets different segments and offers different things to each
        
        This helps businesses get a bigger share of the market and increase products that are marketed
        
        It helps to diversify the business
        
        E.g: different types of cereal from one company (kids cereal and healthy cereals)
      - Concentrated
        
        The business focuses all their resources on providing a product or service to fit that market's needs
        
        Focuses on a specific target market
      - Micro-marketing / One-to-one customization
        
        This strategy is to make a product/service to suit an individual customer wants or needs
        
        The business only manufactures a product when there is an order from the customer
        
        E.g Nike customization shoes
      - Undifferentiated/Mass Marketing
        
        It is based on Price and Availability of product
        
        Anyone can be a target customer as the customer needs is similar across all groups
        
        The marketing mix is designed for all customers
        
        Undifferentiated products are identical and these can be substituted by any other supplier (e.g salt, flour, rice)
- - - - Value
      - Salient Attributes
      - Symbol
      - Competition
      - Perceptual Mapping
        
        This strategy displays (in 2 or more) dimensions, the position of product or brands in the consumer's mind
        
        Steps to positioning using perceptual mapping
        
        Step 1: Determine consumer's perception and evaluation in relation to competitors
        
        The business determines their brand positioning by asking a series of questions about the business and products.
        
        Step 2: Identify the market's ideal points and size
        
        On the perceptual map, the business can represent the size of potential or current markets with circles (the size depending on how big the market is)
        
        Step 3: Identify competitor's positions
        
        When the business understands the customer's view on it's brand and products relative to the competitors, they must study the competitor's position as well
        
        Step 4: Determine consumer preferences
        
        Step 5: Select the position
        
        Step 6: Monitor the positioning strategy
        
        After that, the business can select its preferred position in the map and monitor their positioning strategy
        
        Example of Perceptual Mapping