CHAPTER 4 MARKET SEGMENTATION, TARGETING AND POSITIONING part two: making sense of markets.
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Transcript of CHAPTER 4 MARKET SEGMENTATION, TARGETING AND POSITIONING part two: making sense of markets.
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CHAPTER 4 MARKET SEGMENTATION, TARGETING AND POSITIONING
part two: making sense of markets
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an opening challenge
You are the marketing director of a loss-making brewery. You need to develop new products to revitalise the business but you do not have the resources to launch a full range. How will you choose what type of beer to sell and to whom?
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agenda
• market selection• market segmentation• targeting strategies• positioning
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market attractiveness
• market opportunity • competitive advantage• the objectives of the organisation
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segmentation, targeting and positioning
market segmentation
targeting
positioning
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market segmentation and targeting: why do
it?
• many markets are demand-driven• consumers and customers are more
demanding• few mass markets remain– markets are fragmenting
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what is market segmentation?
‘the process of dividing a total market into subgroups (segments) such that each segment consists of buyers and users who share similar characteristics but are different from those in the other segments’ (Masterson and Pickton, 2014)
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criteria for determining good market segments
• measurable• homogeneous• heterogeneous• substantial• accessible• operational
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consumer segmentation bases
• demographic– socio-economic or social grading
• geographic• geo-demographic• psychographic• mediagraphic• behavioural
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life-stage segments (BRMB-TGI)
• fledglings• flown the nest• nest builders• mid-life dependents• unconstrained couples• playschool parents• primary school parents
• secondary school parents• hotel parents• senior sole decision
makers• empty nesters• non-standard families• unclassified
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examples of behavioural
segmentation bases• purchase occasion• benefits sought• usage rate• user status• readiness stage• attitude to product• involvement• adopter type• loyalty status
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using multiple segmentation variablesAQ – re-set figure type
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organisational segmentation bases
• macro-segmentation– geographic– type of organisation– industry grouping/business sector– customer size
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organisational segmentation bases
• micro-segmentation– user status– trade category– benefits sought– loyalty status– readiness stage– adopter type– purchasing practices– buy class
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nested approach to B2B market segmentation
AQ – re-set figure type
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target marketing (targeting)
‘the selection of one or more market segments towards which marketing efforts can be directed’ (Masterson and Pickton, 2014, glossary)
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targeting strategiesAQ – re-set figure type
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evaluating a segment for targeting
• sufficient current and potential sales/profits?• potential for sufficient future growth?• not over-competitive?• no excessive barriers to entry or exit?• unsatisfied needs that the company can serve
well?
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positioning
‘the place a brand is perceived to occupy in the minds of the target market relative to other competing brands’ (Masterson and Pickton, 2010: 148)
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multi-attribute mappingAQ – re-set figure type
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perceptual mappingAQ – re-set figure type
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positioning strategies
• attributes/product features• price/quality• usage occasions• benefits or needs• user• competitive– against another brand– a different product class
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re-positioninge.g. McDonalds have been trying to move to a healthierposition in people’s perceptions
(photo courtesy of Dave Pickton)
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five-stage processidentify the total market
identify market segments
select target market segment(s)
establish competitors’ positions
establish own position
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summary
• markets are people, not products• products should be targeted at specific
market groups (segments)– use multi-variable segmentation– opportunities for differentiation
• develop clear positioning
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reference
Masterson, R. and Pickton, D. (2014) Marketing: An Introduction, 3rd edn. London: SAGE.