CHAPTER 4 : MARKET SEGMENTATION, TARGETING AND POSITIONING (Learning Objectives)

1. Positioning Concept

1.1. Positioning is the development of a specific marketing mix to influence potential customers ' overall perception of brand, product line or organisation. [Lamb (2013)]

2. Strategies for Selecting Target Markets

2.1. Undifferentiated Targeting : Views as one big market with no individual segment and uses a single marketing unit

2.2. Concentrated Targeting : Marketing approach based on appealing to a single segment of a market

2.3. Multisegment Targeting : Serving two or more well-defined market segments with a distinct marketing mix for each

3. Steps in Segmenting Consumer Market

3.1. 1. Select a market for study : Can be existing market(firm already compete, related market or product category or totally new market)

3.2. 2. Choose bases for segmentation : Need creativity and market knowledge to combine the bases

3.3. 3. Select descriptors : Identify the specific segmentation variables to be used

3.4. 4. Profile and analyze segments : Include a segment's size, expected growth rates, purcahse frequency, brand loyalty and others

3.5. 5. Select target markets : A big decision that can influence the firm's marketing mix

3.6. 6. Design, implement, maintain marketing mix : Bring mutually satisfying exchanger relationships of marketing mix

4. Criteria of Successful Segmentation

4.1. Substantiality : Must be large and profitable to serve and need many potential customers to make commercial sense.

4.2. Identifiability & Measurabliity : The size, purchasing power and profiles can be identified and measure

4.3. Accesibility : Can be effectively reached and served.

4.4. Responsiveness : Different respond to some aspect marketing mix than others.

5. Bases for Segmenting Consumer Markets

5.1. Geography : Dividing market based on different region, market size, market density or climate.

5.2. Demographics : Dividing markets based on age, gender, income, race/ethnicity, family life cycle, education, religion and occupation.

5.3. Psychographics : Dividing markets based on personality, motives, lifestyles, geodemographic

5.4. Benefits : Dividing markets based on consumers' benefit from product

5.5. Usage Rate : Dividing markets based on amount of product purchased or consumed.