Chapter 6: Segmentation, Targeting & Positioning

segmentation

the process of dividing something into parts or segments

marketing segmentation

dividing a large group of customers into subsets based on relevant characteristics, e.g., value, demographics, usage, engagement, interests, psychographics, etc

actionability

key to an effective segmentation

-clarity on ideas/programs

-addressability, able to contact individual customers

potential segmentation variables

lifetime value, recency, frequency, monetary value (RFM), purchase volume or usage, satisfaction level, brand advocacy, psychographics, geography, demographics

multivariable segmentations

common segmentations that allow smaller, better-defined target groups

targeting strategy factors

company resources, product variability/lifecycle, market variability, competitors’ marketing strategies

steps to choosing a differentiation and positioning strategy

1. identifying a set of differentiating competitive advantages

2. choosing the right competitive advantages

3. selecting an overall positioning strategy

more for more

value prop that provides the most upscale product or service

more for the same

value prop high quality at lower prices

more for less

best winning proposition

the same for less

value prop that gives a good deal

less for less

value prop meeting consumers’ lower performance or quality requirements at a lower price

competitive framework

how the product is viewed or used plus other (broadly) potential substitutes

targeted customer

mindset, psychographic and/or demographic descriptions

positioning statement

summarizes company or brand positioning