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Market Segmentation : - Coggle Diagram
Market Segmentation
:
Targeting
Evaluating market segments
The attractiveness of the market
Profitability
The growth of the market segment
Market size
Promote the firm's strengths ,…
The firm's strengths
Product quality
Low manufacturing costs,….
R&D advantage
Types of targeting strategies
Differentiated Marketing strategy
: target several market segments & designs separate offers for each.
meets customers' needs well => costs more
Concentrated marketing (niche marketing) strategy
: a firm goes after a large share of one or a few smaller segments, instead of going after a small share of a large market
Mass Marketing strategy
: no market segmentaion
costs less => doesn't meet customers' needs well.
Micromarketing
: to suit the tastes of specific individuals and locations.
Local marketing
Individual marketing
Market segmentation
Reasons for segmentation
Unable to serve all customers
Customers’ needs becone more and more diversified
A firm’s capability is limited
Segmentation base
Geopraphic segmentation
: calls for dividing the market into different geographical units, such as nations, regions, states, cities,..
Demographic segmentatio
n: divides the market into segments based on variables such as age, gender, family size, income, occupation,..
Psychographic segmentation
: divides buyers into different segments based on social class, life style, or personality characteristics
Behavior segmention
: divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product ( occasions, sought benefits, users status, usage rates, loyalty)
Definition
Market segmentation involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
Requirement
Accessible
Substantial
Measurable
Differentiable
Actionable
Market
Market's need
Unstated needs
: the additional benefits that customers also want from the product or service but they don’t say it. The benefits can be supportive products or services or the brand credit and quality assurance.
Real needs
: What the consumer wants from a product or service for rational and genuine needs ( what the stated needs mean)
Delight needs:
Needs that are not essential but would delighht if met
Secret needs
: Needs that customer does not express, often intangible in nature
Stated needs
: What buyers say when sellers ask them
Market classfication
Available market: a set of consumers who have interest, income, and access to a particular offer
Served marke
t: parts of current markets and get seperated and better offering than the rest of current markets
Potential market
: a set of consumers who profess a sufficient level of interest in a product or service
Penetrated market
: customers who have already bought the product or service
Positioning
Definition
A product’s position
is defined by consumers. Brands happen in the minds of consumers.
To position a product
• build a special feature & bring it to customers' minds
• differentiate (must be meaningful and useful for customers) its products and brands for competition
Postioning maps
Definition
show consumer perceptions of their brands vs competing products on important buying dimensions.
Reason for positioning
• Must be a clear, succinct and impressive message to remember.
difference and uniqueness => customers would choose you
being different to “orient” their behaviors.
Position steps
Select an overall positioning strategy
Develop a positioning statement
Select worthy differences