Segmentation, targeting and positioningmar14.ppt

8/10/2019 Segmentation, targeting and positioningmar14.ppt

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This concerns the dividing up of a large totalmarket into a number of sub-markets basedon some demographic, behavioural or otherbasis


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Targeting is concerned with how a companyreaches its target audience.

Three strategies:

DifferentiatedUndifferentiated

Concentrated


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Positioning is concerned with how a company

placesits product or service in the eyes ofthe consumer


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Geographic. Defining customers based onwhere they live.

Example. Eurostar will look to greaterLondon/South East, Paris, Lille and Brusselsregions. A new Sainsbury branch thecompany will look to specific locations interms of population size, land costs, rates


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This concerns age, sex, marital status,income, occupation, race.even body sizeand shape

Examples. Companies involved with

slimming products will need to be sure ofthe demographics

Mother and Baby magazine will target thatgroup.

Who will The Daily Telegraph target? Arethey different from Guardian readers?


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A B C1 C2 D E This classification was designed many years

ago by the advertising industry A= upper middle. Top civil servants,

senior army officers, top businessmen,some professional

B=middle class middle ranking officers,middle managers, solicitors,

C1=lower middle. Supervisory, clerical,some professional


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C2= skilled working class.. plumbers,electricians, bricklayers,

D=semi and unskilled workers. cleaners,dustmen, carers,

E=those at lowest subsistence level.pensioners on state pension only, long termunemployed, casual workers


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Psychographics .. Lifestyles, attitudes,opinions and interests. This involves fairlyintangible variables. Holidays, clubbing,artwork, gardening, golf?? You may

remember the Yuppies, .young upwardlymobile professionals, OWLS.. Older with lessstress


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Based on geography and demographics e.g.ACORN. A Classification Of ResidentialNeighbourhoods see upmystreet.com foryour own ACORN classification


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It is unlikely that any form of segmentationwill stand alone and that any segmentedmarket will be..

Multivariable.. E.g. London area,families, AB socio group to make up onemultivariate segment.


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Size large, medium or small?? Wholesalers?Retailers?

Location.. by county, by country,

Usage rate. Light user requiring differentterms for prices and delivery to a heavy user


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Could improve profits Could improve sales

Competitive edge

Enables the marketing mix to be tailored tospecific groups

Concentrate on the most profitable markets

Improves consumer choice


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Forces competition into a defensive strategy Stretch product life cycle

Can provide sales force with a renewed drive

Permits gap analysis are there gaps in themarket?


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UndifferentiatedThere is one marketing mix and assumes that

the market is homogenous.

Rather theoretical now but could includepetrol?? Metro?? Mcdonalds?... All these arearguable.


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This assumes that there is a different mix foreach segment.

E.g. Holiday Inn will have different mixes forbusinessmen and women, tourists,conference market & wedding receptions.Each of the 4/7 Ps will be used differently foreach segment.


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This is the most focused of the threeapproaches and concentrates on one smallsegment out of a larger market

One mix is necessary for this concentrated

group Example.Tie Rack , Morgan cars, Sock Shop Niche marketing??


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Distinctiveness different from othersegments

Tangible does the segment exist? Peoplewith a conservative outlook might be difficult

to measure Accessibilityhow can we reach our

customers effectively and efficiently??Difficult to contact??

Measurability Is it big enough?


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This is the final stage in the STP process Positioning means thinking about the

competitive space it occupies in the market.How do we want the customer to perceive the

product/service? What are the attributes? Positioning focuses on customer based

perception.. Read perceptual mapping


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BMW.. Bavarian Motor WorksPositioning platform.. German, sound

engineering, not cheap, style, advancedquality..

Stella Artois beer. Reassuringly expensive


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Can be costly and risky Examples.

Coca Cola was a childs drink

Skoda. Now owned by Volkswagen VW(Peoples Car). Used to have a cheap Czechimage. Would you buy a Skoda?


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Segmentation, targeting and positioningmar14.ppt

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