4 segmentation
description
Transcript of 4 segmentation
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Chapter 4
Market segmentation,
targeting and positioning
Targeting?
Segmentation?
Position?
Three main learning objectives
Market segmentation
This is the process of dividing the total market into several smaller similar groups.
All members in a group have similar factors that influence their demand.
Benefits of segmentation
Identify and satisfy specific benefits
• Efficiently use limited resources
• Select target market.
• Action the market segmentation plan.
Limitations of segmentation
LimitsMass production
increaseExpenses
LimitsStandardisation
Segmentation limits: • Mass production, which offers economies
of scale.• Standardisation of service, which
increases delivery speed and efficiency.Segmentation increases:• Expense through production and
marketing of products to only specific groups of the market.
• Promotion, administrative and inventory costs.
Limitations of segmentation
Bases for segmentation
Bases for segmentation
Demographic
Psychographic
Behaviour
Geographic
Marketer
Population• People constitute a market.
•Marketers analyse the population and its geographic and demographic distribution as the first steps to understanding the consumer market.
Bases for segmentation• Geographic — The city size, urban/ suburban/
rural population distribution and climate.
• Geographic distribution—frequently divided into rural, urban and suburban.
-Rural-Suburban-urban
–Age.–Gender.–Family life cycle.
–Education.– Income distribution.
–Ethnicity.
Demographics—the vital statistics that describe a population. In particular:
Relevance of consumer demographics
• Infant market (0–4 yrs).• Child market (5–12 yrs).• Teenage market (13–16 & 17–20).• Young adult/Young family market (21–
39).• Middle-aged market (40–55).• Mature-age market (55–65).• Over 65s.
Age
GenderMale
Female
Family life cycle
• Single parent and two-parent families.• Young couples with no children.• Family (usually 2 adults, 2 young
children).• Family with teenagers.• Multicultural (or mixed) family.
Family life cycle will determine the purchase behaviour
Consumer income
• Upper class• Middle class• Lower class• …..
Class name Social status Occupation of head of household
% of populati
on
A Upper middle Higher managerial or professional
3
B Middle Intermediate managerial, or professional
14
C1 Lower middle clerical, junior managerial,
administrative
27
C2 Skilled working Skilled manual workers 25
D Working Semiskilled and unskilled workers
19
E Those at lowest levels of subsistence
Pensioners, widows, casual or lower-grade
workers
12
Psychographic — Personalities, lifestyles, social class including activities, interests and opinions (AIO).Behaviour towards products.
Benefits desired or sought.Product usage rate.
Social influences
• Culture.• Social class.• Reference groups.• Families and other households.
– Core values, attitudes and beliefs.
– The family as a buying unit.
Culture difference
Color Red, Yellow, White, Purple
White, Black Red, Black
number 6,8,9,10 7,
4,7 3,13
Class name Social status Occupation of head of household
% of populati
on
A Upper middle Higher managerial or professional
3
B Middle Intermediate managerial, or professional
14
C1 Lower middle clerical, junior managerial,
administrative
27
C2 Skilled working Skilled manual workers 25
D Working Semiskilled and unskilled workers
19
E Those at lowest levels of subsistence
Pensioners, widows, casual or lower-grade
workers
12
Market segmentation process
• 1. Identifying the needs and wants of customers.
2.Identifying the different characteristics between market segments.
3.Estimating the market potential.
Identify the needs and wants of customers
what they need?
Identify different market segments
Identify characteristics that distinguish particular segments from others.
Business persons need first or
business class instead of economy
class.
Estimate the market potential
• Forecasting of market demand will determine:
Market potential
Sales potentialMarket demand
Market share.
Conditions for effective segmentation
A segmentation process must meet 3 conditions:
1. The characteristics used to categorise customers must be measurable and the data obtainable.
2. The segment itself must be accessible through existing marketing institutions with a minimum of cost and waste.
3. A segment must be large enough to be profitable.
Where is the market?
Targeting
Resources
goals & image
profit
Target market strategies
• The target market should be compatible with an organisation’s goals and image.
• The marketing opportunity presented by the segment must match the company’s resources.
• The business must generate a profit if it is to continue its existence.
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Companymarketing
mix
Companymarketing
mix
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Companymarketing
mix
Companymarketing
mix
Company mix 1Company mix 1
Company mix 2Company mix 2
Company mix 3Company mix 3
MarketMarket
• VolksWagenwerk 。
Pheaton
Touran
Positioning
Definition:• Customers’ image or perception of a
particular brand or company
How is my image?
Positioning strategies
Class or attribute
Price & Quality
competitor
Cappuccino from Starbucks
Beef sandwiches from McDonalds
Iphone 4 from Apple
N95 from Nokia
Camry from Toyota
5 series from BMW
Neverfull bag from LV
1.Brief introduction of the product
2.Identify target market of the product