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Segmentation, Targeting and Positioning - Coggle Diagram

- - - - Step 2: Use segmentation methods
        
        Segmentation Methods
        
        Behavioural
        
        How the product or service is used
        
        Occasional segmentation
        
        When the product or service is purchased or consumed
        
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        Loyalty segmentation
        
        Eg. Hotels, airlines, restaurants, petrol stations
        
        Geographic
        
        Based on where they live
        
        Same country, region, states or neighbourhoods
        
        Needs vary by region
        
        Demographic
        
        Same age, gender, income, education, family life cycle etc.
        
        Easy to reach and identify
        
        Psychographic
        
        Personality, social class, lifestyles, attitudes & opinions
        
        Benefits
        
        Same needs and wants that can be satisfied
        
        Cannot appeal to all buyers in the marketplace
        
        Buyers are too numerous, widely scattered and varied in their needs and buying practices
        
        Companies must identify the parts of the market they can serve best and is most profitable
        
        Move away from mass marketing towards target marketing
        
        identifying market segments
        
        selecting one or more segments
        
        developing products and marketing programmes tailored to each
        
        Article: What Is Market Segmentation?
      - Derived from mission or current situation
      - Consistent with SWOT
      - focuses the firms toward opportunities that grow in relation to firm's actions
    - - Positioning
        
        Step 5: Identify and develop a positioning strategy
      - Step 3: Evaluate segment attractiveness
        
        Step 4: Select the target market
- - - - Identifiable
        
        identify who is within their market to be able to design products or services to meet their needs
        
        Segments are distinct from one another
        
        too much overlap between segments means that distinct marketing strategies are not necessary to meet segment members' needs
        
        Who is in their market?
        
        Are the segments unique?
        
        Does each segment require a unique marketing mix?
      - Substiantial
        
        Market found should be a good market
        
        If market is too small or its buying power insignificant, it will not generate sufficient market or support the marketing mix activities
      - Reachable
        
        Make an impact through accessibility
        
        Use of persuasive communications and product distribution
        
        Know that product or service exists
        
        Understand what it can do
        
        Recognize how to buy
      - Responsive
        
        Customers must react positively to firm's offering
        
        Only target segments that firm's can provide appropriate products or services
        
        React similarly to firm's other offerings (other goods and services)
      - Profitable
        
        Market growth
        
        Current size and expected growth rate
        
        Market competitiveness
        
        Market access
        
        ease of developing or accessing distribution channels and brand familiarity
        
        Number of competitors, barriers to entry, product substitutes
- - - - Identical products that can be substituted
        
        Compete based on price and availability
        
        Anyone can be a target customer
        
        Customers needs and wants are similar across all groups
    - - Target several market segments with a different offering for each
        
        Obtain a bigger share of the market
        
        Increase the market for their products overall
        
        helps diversify business and lower company's overall risk
        
        Offering different variations of the same products
    - - All its resources on providing a product to fit that market's needs
    - - Tailoring a product or service to suit an individual customer's needs or wants
        
        Company only manufactures the product when there is an order from a customer
- - - - Value Proposition
        
        Informs customers of the benefits from the product or service
      - Market Positioning
        
        Defines marketing mix variables
        
        Target customers have a clear understanding of what product does
  - - - Determine consumers' perceptions and evaluations in relation to competitors
        
        Identify the market's ideal point and size
        
        Identify competitors's position
        
        Determine consumer preferences
        
        Select the position
        
        Monitor the positioning strategy
        
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