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Segmentation, Targeting and Positioning, means, helps, in strategies like,…

- - - - Optimize products
        
        meet customer's needs and wants
      - Advertise to different customers
        
        Creating marketing communications on digital platforms
        
        Ad messaging
        
        Advanced targeting
        
        helps in
        
        Better response Rates
        
        Lower Acquisition costs
      - Better understand the target market
        
        Leverage targeting
        
        Product
        
        Sales
        
        Marketing
    - - Demographic Segmentation
        
        groups based on
        
        Observable, people-based differences
        
        Example
        
        Age
        
        Gender
        
        Nivea labeling their deodorant products with "Men's" and "Women's"
        
        Income
        
        Race
        
        Easily accessible
        
        Low cost to obtain
        
        Most basic form of segmentation
      - Behavioral Segmentation
        
        groups based on
        
        Consumer behavior data
        
        Example
        
        Benefits sought
        
        needs customers is trying to meet by purchasing a product
        
        1 more item...
        
        Usage Rate
        
        can be classified as
        
        1 more item...
        
        Loyalty
        
        helps
        
        firm create messaging to cater to different behaviours
      - Geographic Segmentation
        
        groups based on
        
        Location
        
        Example
        
        Country
        
        China would require Mandarin ads while India would require Tamil ads
        
        State
        
        Climate
        
        The North Face advertising warmer clothing to cooler climates but cooling clothing to warmer climates
        
        gain a better understanding to their needs
        
        send out location-specific ads
      - Psychographic Segmentation
        
        groups based on
        
        Psychological aspects of consumer behaviour
        (Mental and emotional)
        
        Not easy accessible
        
        Valuable audience insights
        
        Example
        
        Motives
        
        Needs
        
        Preference
        
        Example
        
        Personality traits
        
        Perfume company having different scented perfume to suit different personalities
        
        Values
        
        Attitudes
        
        Lifestyle
- - - - Segment size
      - Demographics of identified segments
        
        assessed by marketers
      - Competition level of each segment
      - Segment's growth potential
      - Segment's ability to help achieve company goals
      - Company's ability to utilize resources pursuing the segments
  - - - Undifferentiated market targeting/Mass marketing
        
        where
        
        Firms goes after the whole market
        
        Firms do not produce different products for different market segments
        
        Buyers are considered as a homogeneous group
        
        Hershey producing one chocolate bar for all in the past
        
        Firms rely on mass distribution and mass advertising
        
        Firms appeal to wider audience based on common customer needs and wants
      - Differentiated market targeting
        
        where a company aims to
        
        Target multiple market segments
        
        Design different and effective marketing mix for each segment
      - Concentrated market targeting
        
        where a firm
        
        Focus its resources
        
        Target specific market segments
      - Micromarketing market targeting
        
        where a firm
        
        Develops products/services to best match with individuals and locations
        
        Local marketing
        
        Individuals marketing
- - - - based on
        
        4) Using Product characteristics or Customer Benefits
        
        focuses on
        
        Characteristics of product
        
        Example
        
        Reliability
        
        Durability
        
        Customer benefits
        
        5) Pricing
        
        Example
        
        Products with higher pricing would give people the perception that it is of higher quality
        
        3) Product Process
        
        product with its users/class of users
        
        Example
        
        Johnson and Johnson repositioned its shampoo from one used for babies to one used by people who wash their hair frequently
        
        6) Product class
        
        Instant breakfast positioning itself as a breakfast substitute
        
        2) Using cultural symbols
        
        identifying something meaningful to people that other competitors are not using
        
        associating their brand with that symbol
        
        7) Competitors
        
        where a firm either
        
        uses the same of similar positioning strategies as used by competitors
        
        uses a new strategy taking the competitors' strategy as base
        
        1) Use or application
        
        Example
        
        Nescafe introducing cold coffee targeting summer months instead of positioning itself as a winter product
      - project a favorable image in the minds of the consumers