[MADFUND] Segmentation, Targeting, and Positioning

Segmentation

Segmentation

Dividing market into smaller groups with distinct needs, characteristics or behavior that might require different marketing strategies

Mass Marketing

targeting the whole potential market with a single message

Segmentation

a strategy where the company divides its market into different segments based on their unique needs and characteristics

Niche marketing

where the marketer focus on a segment which have narrower and concise needs

Geographic Segmentation

calls for division of the market into different geographical units such as nations, states, regions, cities etc

Demographic Segmentation

divide the market into groups on the basis of variables such as age, gender, generation, marital status, nationality, family life cycle, family size, life stage, occupation, income, religion, social class

Psychographic Segmentation

in this segmentation buyers are divided into different groups on the basis of life style, personality traits and values

Behavioral Segmentation

marketers divide buyers into groups on the basis of their knowledge of, attitude towards, use of, or response to a product

Target Market

a specific group of consumers at which a company aims its products and services

Positioning

the act of designing the company's image and value offer so that the segment's customers understand and appreciate what the company stands for in relation to its competitors

Differentiation

an act of designing a set of meaningful differences to distinguish the company's offers from competitor's offers

Positioning strategies

marketing strategies that brands use to promote their offerings and gain a competitive advantage in a market

Positioning strategies

to lead users and consumers to associate a brand's offerings with characteristics that provide a unique appeal

Product characteristics/Consumer benefits
Pricing
Use of application
Product process
Product class
Cultural symbols
Competitors

Positioning strategies

Product characteristics/Consumer benefits

the focus is on quality

Product characteristics/Consumer benefits

addresses the brand's durability, dependability or reliability and style

Pricing

focuses on the relationship between price and quality and the consumer's perception of the value of a product

Use of application

Use of application

based on its use or function

Product process

when a brand reaches a larger market or changes the purpose of the brand or product

Product process

endorsements by famous personalities or product influencers are examples

Product class

consists of positioning two related products in the same product class simultaneously, resulting in an increased customer base

Cultural symbols

to identify something like a symbol significant to people that hasn't been used by competitors and harness it to associate your brand with that symbol

Competitors

an obvious challenge on quality and asserts that your brand is superior with a competitive edge

Under Positioning

Failing to present a strong central benefit or reason to buy the product.

Under Positioning

Occurs when customers cannot readily identify the brand or the brand's features. The product must stand out in the mind of the consumer.

Over Positioning

Marketers makes the product too special, so the potential customer group becomes too small.

Over Positioning

It means that buyers believe that the product is meant for a very select audience because it is premium priced.

Confused Positioning

By claiming two or more benefits that contradict each other.

Confused Positioning

Too many benefits or claims, or when the brand attempts to position in too many segments.

Doubtful Positioning

Claiming a benefit that customers will doubt that the brand can actually deliver.