MGT2306-MARKETING-MANAGEMENT LESSON 6
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Transcript of MGT2306-MARKETING-MANAGEMENT LESSON 6
LESSON 6 OBJECTIVES
• Define Segmentation, Targeting and
Positioning
• Describe the bases of segmentation,
differentiate targeting strategies and distinguish
different types of positioning strategies
• Be able to manipulate the marketing mix
according to the segmentation requirements
MARKET SEGMENTATION
Market segmentation is a marketing strategy that
involves dividing a broad target market into subsets
of consumers, businesses, or countries who have
common needs and priorities, and then designing
and implementing strategies to target them.
CHARACTERISTICS OF
EFFECTIVE SEGMENTATION
Requirementsfor
effectivesegmentation
Measurable
Substantial
Actionable Accessible
Measurable
members can be identified
the size and purchasing power of the
segment can be measured
Accessible
they can be reached through media and
distribution channels
they can be effectively served
Substantial
they are large enough to be profitable
Actionable
a cost-effective marketing program can
be designed to attract and serve the
segment
DEFINITION OF TARGETING
“The selection of a segment and developing
marketing strategies that focus on meeting the needs
of that particular segment of market”
TARGET MARKETING STRATEGIES
There are 3 approaches to
target marketing strategies:-
a) Mass Marketing
b) Differentiated Marketing
c) Concentrated/Niche Marketing
d) Micro marketing
MASS MARKETING
• Mass Marketing is a coverage strategy where a
company markets or attempts to sell through
persuasion a product/event to a large audience.
• So in effect the message will reach the largest
number of people possible and traditionally it
has focused on radio, television and
newspapers as a medium.
DIFFERENTIATED MARKETING
• Is where a company/product attempts to appeal to
two or more clearly defined market segments with a
specific product and unique marketing strategy
tailored to each separate segment.
CONCENTRATED/ NICHE
MARKETING
• Is a market segmentation and coverage strategy
whereby accompany/ product is developed and
marketed for a very well-defined, specific segment
of the consumer population.
• The marketing plan will be a highly specialized one
catering to the needs of that specific consumer
segment.
WHAT IS POSITIONING?
• A marketing strategy that aims to make a brand
occupy a distinct position, relative to competing
brands, in the mind of the customer.
• Companies apply this strategy either by
emphasizing the distinguishing features of their
products or a suitable image through advertising.
WHAT IS BRANDING?
• The process involved in creating a unique name
and image for a product in the consumers' mind,
mainly through advertising campaigns with a
consistent theme.
• Branding aims to establish a significant and
differentiated presence in the market that attracts
and retains loyal customers.
Against a
competitor
Usage
occasion
Away from
competitors
Product
attributes
Product
class
Benefits
offered
Users
High-Tech
Innovative
Creative
Cheapest
Fastest
When you
most need
Beginners
Professionals
The better
choice
Works better
Just do it
Open
Happiness
Grade AA
4-stars rating
Positioning
Strategies
AREAS OF COMPETITIVE
ADVANTAGE
Product Service
Personnel Image
Areas for competitive
differentiation