MarketSegmentation, Targeting and Positioning Market - Definition - PowerPoint PPT Presentation

MarketSegmentation, Targeting and Positioning

Market - Definition A market means a collection (an aggregate) of people having the following: Need for a particular product Ability to purchase  Money Willingness to purchase Authority to purchase

Types of Markets Market Consumer Market / Industrial Market / Domestic Market Organizational Buy for Buy for official household consumption consumption

Marketing Approaches 1. Mass Marketing 2. Target Marketing

1. Mass Marketing Offer a common product (i.e. the same marketing mix) to the overall market

2. Target Marketing Def: Identifying market segments, selecting one or more of them, and developing offers tailored to each For Females For Males

Target marketing (Def.)  Identifying market segments, selecting one or more of them, and developing marketing programs tailored to each 03 Steps in Target Marketing Step 3 - Market Step 2 - positioning Market Step 1 - targeting Market segmentation

Step 1 – Market Segmentation Dividing market into smaller groups (segments) Market 2 Segments 1 4 It is assumed that customers are 3 homogeneous within a segment

VARIABLES/BASES Bases/Variables for Segmenting Market Behavioural Demographic Geographic Psychographic Segmentation Segmentation Segmentation Segmentation - AGE - DISTRICTS - SOCIAL CLASS - USER STATUS - FAMILY SIZE - LOCATION - LIFESTYLE - USEAGE RATE - INCOME - OCCUPATION - BENEFITS SOUGHT - LOYALTY STATUS

Step 2 – Market Targeting Evaluate different segments and decide which segments to be focused 2 1 4 3 Market Targeting Differentiated Niche Marketing Marketing

DIFFERENTIATED MARKETING CONCENTRATED MARKETING (NICHE MARKETING) Segment 1 Segment 2 Product Segment 3

Step 3 - POSITIONING Positioning is arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of the target consumers (Philip Kotler – 13 th edition) i.e. Placing the marketing mix to get a strong position in consumers mind

POSITIONING VARIABLES Benefit positioning  Ceylinco Insurance - “On the spot claims payment”  Mortein coil - a good night sleep for 12 hours  Signal – strong teeth and prevention of decay  Close-up – long lasting fresh breath and dazzling white

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