Segmenting,targetingandpositioningWhatissegmentation?Theprocessofdefiningandsubdividingalargehomogenousmarketintoidentifiablesegmentswithsimilarneeds,wantsordemandcharacteristicsWhatarethebasesofsegmentation?

- Behavioural:basedoncustomerbehaviore.g.Onlineshoppers,shoppingcentrecustomers,brandpreferences

- Demographic:characteristicsofthecustomere.g.Age,gender,incomebracket,education,jobandculturalbackground

- Psychological:customergroup’slifestylee.g.Socialclass,lifestyle,personality,opinionsandattitudes

- Geographical:e.g.Continent,country,state,city,orruralWhataretheconditionsrequiredforasegmenttobeeffective/desirable?

- Measurable1. Amarketsegmentmustbemeasurableintermsofitssizeinpurchasingpower

andprofiles2. Thesize,profileandotherrelevantcharacteristicsofthesegmentmustbe

measurableandobtainableintermsofdata.Iftheinformationisnotobtainable,nosegmentationcanbecarriedout

• Actionable1. Effectiveprogramscanbedesignedforservingandattractingthesegments2. Thesegmentswhichacompanywishestopursuemustbeactionableinwhich

theyhavesufficientfinance,personnelandcapabilitytotakethemall• Accessible

1. Shouldbeeasytoreachandserve2. Thesegmentshouldbeaccessiblethroughtheexistingnetworkofpeopleatan

affordablecost• Substantial

1. Amarketsegmentshouldbelargeorprofitableenoughtoserve.Theyshouldbethelargesthomogeneousgroupthatisworthpursingwithamarketingprogramthathasbeentailored

2. Thesegmentshouldbelargeenoughtobeprofitable.Forconsumermarkets,thesmallsegmentmightdisproportionatelyincreasethecostandhencetheproductsarepricedtoohigh

• Differential1. Marketsegmentsneedtobedistinguishableconceptuallyandmustrespondin

differentwaystothedifferentmarketingmixprogramsandelements2. Thesegmentsshouldbedifferentfromeachotherandmayrequiredifferent4Ps

andprogramsWhatistargeting?Whyisitimportant?Targetmarketsareoneormorespecificgroupsofpotentialconsumerstowardswhichanorganizationdirectsitsmarketingprogram

- Abletospecificallytargetonemarket,andthendesignyourplanabouthowyouwillmarkettothem

- Abletodeterminewhichgroupwillbenefitmostfromtheproductorserviceoffered,andthenfocusitssellingandmarketingeffortson

- Won’tlosehalfyouraudiencedueitnotapplyingtothem- Won’thavetoinvestsomuchintomarketing- Morefocuses,moreeffectiveandgetagreaterreturn

Whatispositioning?Whyisitimportant?Productpositioningistheplaceanofferingoccupiesinconsumers’mindsonimportantattributesrelativetocompetitiveproducts;developingaproductorbrandimageinthemindsofconsumers

- effectivepositioningensuresthatthemarketingmessageresonateswithtargetconsumersandcompelthemtotakeaction

- effectivepositioningrequiresaclearunderstandingofcustomerneedssothattherightcommunicationchannelsareselected

- conveystoconsumerswhythiscompany’sproductshouldbepreferredoverothercompetitiveoptions

- productionpositioningisthefoundationforanyeffectivemarketingplanbecauseitimpactstheultimatepurchasedecision

Howdothetermspositioning,targetmarket,marketingstrategyandmarketingmixrelatetooneanother?