Segmentation Targeting and Positioning Learning Unit 4 Outcomes

Segmentation Targeting and Positioning Learning Unit 4

Outcomes • Know what the marketing strategy is and why it is the focus of the text • Understand the target market • Be familiar with the basics of the marketing mix • Know what market segmentation is and the segmentation bases • Know three targeting approaches • Know what positioning is and why is it useful • Understand differentiation

Marketing strategy • Is the big picture of what the company plans to do in a market…. • Marketing Strategy = Target market + Related marketing Mix

Target market

4 P’s

Segmentation • Dividing up a market of consumers with different needs into groups or segments with similar needs. • Market segment = relatively similar, who respond the same way to a marketing mix • Each segment with different needs need to be treated differently

Segmentation

Dividing up a market of consumers with different needs into groups with similar needs.

When dividing a market…. . • Homogeneous within: Customers are similar and will respond in a similar way. • Heterogeneous between: Customers in different segments are very different from each other. • Substantial: Enough people in segment to make it financially viable • Operational: Can be identified, and reached via media and distribution

Dimensions for segments • Demographic - Age, gender, income, occupation… • Psychographic – lifestyle, activities, interests • Behavioural – How they use the product, where, when how much, how often do they buy the product • Geographic – Where they live

Targeting • If segmentation done ------ targeting • 3 basic options to targeting • Single target market approach • Multiple target market approach • Combining – 2 or more • Mass marketing

Positioning • How consumers THINK about or PERCEIVE your product relative to competitors products in a market. • Your four P’s will help with positioning….

How do we develop marketing mixes? • Product: The need satisfying offering. • Can be a physical product or service or combination of both

Place • Getting the product to the place where it has to be sold.

Hair salon

PRICE • $$$$$$$$$$$$$$$$$$$$$$$$$$$$ • The right price will sell your product. • Price considers: Costs, Competition & Consumer reaction • 3 C’s

PROMOTION • All about communication • All about telling the target market about your product • Tools of the promotional mix: • Personal selling (using a sales person – direct contact) • Mass selling (advertising & publicity) • Advertising: paid form, non personal presentation of ideas by an identified sponsor • Publicity: unpaid form, non personal presentation of ideas and services by an identified sponsor

Advertising

Publicity

Sales promotion • Activities other than advertising, publicity and personal selling that stimulate interest. • Buy one get one free, • Buy three get the cheapest for free • 40 % down on all ladies shoes till Saturday…. .

4 p’s - Need to be balanced

Marketing a service – add 3 p’s • People • Process • Productivity • The needs of your target market determine your MIX!

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