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Market segmentation :card_index_dividers:, https://www.qualtrics…
Market segmentation :card_index_dividers:
What
Research that determine how companies divides its customer into categories to optimize product and advertising to different customers
Why
To leverage targeting in product. product offering for different
Advanced targeting on digital platforms
Facebook
Google
Provide more information for better product offerings for different segments
How
Step 1: Conduct preliminary research
Step 2: Determine how to segment your market
Step 3: Design your study
Step 4: Create your customer segments
Step 5:Test and iterate
Evaluate segments to see if they were usable and helpful
Analyse responses
Ask a mix of chosen criteria questions
Question to be quantifiable
Decide criteria
demographics/demographics, psycho graphics, or behavior
Get to know customers by asking initial , open ended questions
Who
Types of segmentation
Geographic
Based on geographical boundaries
Easiest
Differing needs in different geographies
Due to
Climates
Can determine where to sell and expand business
Demographic
Age
Education
income
Eg. High vs low income
Race
Eg. Malay , Chinese , Mexican
Gender
how customers use product
Wiliness to spend
Transactional
Spending pattern of customers
to group valuable customers and spending behavior
Monetary
How much
Frequency
How often
Recency
how recent
Psycho graphic
Values
Opinion
Personality
Interest
Lifestyle
Eg. Fitness market sorting peoples into categories who care about healthy living and exercise
Needs-based
Based on similar needs or benefits a group is seeking
Emotional
addresses emotional desire or frustration
creams for Wrinkles or acnes
Functional
a way to make something easier or perform better
Smart devices to control electronics in the house
Value
align with personal value or beliefs
Eg. vegan or halal products
Problem-solving
Eg. Gluten free products for customers with celiac diseases
Ensuring effectiveness of segments
Accessible
What is the best way to reach out to your segments
.
Examples
Your segments might not be tech savvy so you rely on newspaper or poster to reach out to them
using social media to connect to Teenagers who spend alot of their time on such platforms
Substantial
Making sure segments have to ability to purchase your goods
Segments must not just be interested but can be expected to buy something
Example
A high end retail shop that uses biodegradable material to make their product
Segments that could be attracted
Retirees that can afford the products
Environmental enthusiastes who are willing to pay a premium for the products
Measurable
Is segmentation variables directly related to purchasing of product
Estimate how much your segment will spend on your product
Eg. one segment could be a sneaker collector,who might be more willing to spend in your shop if there is a sale
Actionable
Different segments should have different response to the market offerings
Example
Segmentation reveals that Sneaker heads and teenage athletes have the same purchasing habit should be grouped together
https://www.qualtrics.com/au/experience-management/brand/what-is-market-segmentation/
https://www.customermonitor.com/blog/everything-you-need-to-know-about-the-6-types-of-market-segmentation
https://www.fool.com/the-blueprint/positioning-strategy/
https://courses.lumenlearning.com/marketing-spring2016/chapter/reading-targeting-and-the-marketing-mix/
Reaing sources :books:
Targeting :dart:
Strategy
Differentiated marketing
target
large groups within the market
Provides different offerings for different segments
Goal
Increase market sales and share across targeted segments
if succesful
create strong market presence that deters competitors
Create strong consumer affinity for products
lure customers from established brands
If established brands do not pay attention to perfect marketng mix to certain segment
Example
Oreo
developed flavors for the Chinese market which took a portion of market share from Kraft
Example
Niche marketing
Target
high penetration within smaller, specialized segments
Focus all efforts to small segments
good for
small companies with limited resources
disadvantage
narrow market segment
Shift in consumer taste
Example
Rolex
Gucci
Mass marketing
also known as
undifferentiated marketing
target
everyone everywhere
marketing everyone the same way
ignores segments
Single market mix
Less personal
Thru
National TV
Radio
Print advertising campaigns
Success
Depends if it can reach enough people
efficient yet costly
Its just 1 market mix
But large scale
Good for
Undifferentiated products
Gasoline
Whitebread
Micro marketing
target
individual customers
Specific geographical location
known as
one to one marketing
Local marketing
Example
build a bearworkshop
M&M
Amazon local
Individual specialization
Best way to reach targeted segments
Positioning :red_flag:
what
Place a brand resides in the mind of customers
Position strategy
defines the
Sales and approach used with customers
.
Ensures
alignment within company on how is presented to customers
Types
specific
Company product/service target its use in a specific way
Eg. Vicks. has two products of the same use but one is for night and the other for day
Competitive positioning
focus on showings are better than competitors
Companies using phrases such as
still the best
We try harder
price
Economical pricing
Premium pricing
Eg. Rolls Royce
Position itself as expensive than most car brands.which appeals to customers
User group
why it is applicable to a specific group
Eg. Johnson and Johnson
position as gentle for children