Comprehensive Guide to Market Segmentation, Targeting, and Positioning Strategies

Consumer Research/Insights

Understanding consumer behavior and preferences through data analysis.

Undifferentiated Marketing

Ignore market segment differences and target the whole market with one offer.

Advantages of Micromarketing

Better meet customer needs.

Marketing Strategy

A planning process done prior to development of the marketing plan (4 Ps) that involves setting business and marketing objectives, SWOT, mission statement, value proposition, and brand positioning/differentiation.

Geographic Segmentation

Dividing the market into different geographical units (nations, regions, states, counties, cities, neighborhoods, etc.).

Psychographic Segmentation

Segmentation based on social class, lifestyle, and personality.

Occasion Segmentation

Marketing a product based on time of the day (e.g. morning OJ).

Usage Rate Segmentation

Segmentation based on how often people use the product (e.g. Red Bull segments their customers based on heavy usage & lifestyle).

Customer Lifetime Value (CLV)

Identifying and treating special customers with high customer lifetime value.

Long Term Profit

Profit generated over an extended period, contributing to overall business sustainability.

Value Proposition

A set of benefits or values a company promises to deliver to consumers to satisfy their needs better than competition.

Consumer Perceptual Maps

Visual representations of consumer perceptions of different brands or products in relation to each other.

Planning of the 4 Ps

The process of developing the marketing mix, which includes Product, Price, Promotion, and Place.

Customer Service

Building a long-term relationship with consumers through effective support and service.

Differentiable

Segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

Actionable

Effective programs can be designed for attracting and serving the segments.

Target Consumer Size

Your job as marketer is to set the size of your target consumer: Mass, Segmented, Niche or Micro.

Differentiated Marketing

Target multiple segments with separate offerings.

Concentrated Marketing

Dominate a small niche.

Mass Customization

Firms interact one-to-one with masses of customers.

Disadvantages of Concentrated Marketing

Smaller pie.

Disadvantages of Micromarketing

More expensive and riskier to customize: fewer customers.

Identifying Strategy Factors

Depends on company resources, ability/supply to make the product for everyone, and strategy focus.

Targeting Strategy Evaluation

Evaluate using MSDA.

Target Segment Description

Which of the 3-5 segments is your target? Describe them.

Demographic Segmentation Example

Age 16-18 HS, Age 19-30 College/Young Adult, Age 30-40 Approaching Middle Age Adult, Age 45-54 Middle Aged Adult, Age 55+ Older Adults/Seniors.

MASDA

Measurable, Accessible, Substantial, Differential, & Actionable

Airline Name

Comfort Air

SMART Goals

Specific, Measurable, Achievable, Relevant, Time-bound objectives for business and marketing.

Differentiation

The process of distinguishing a product or offering from others to make it more attractive.

Customer Perceptual Maps

Visual representations of how consumers perceive different brands in a market.

Market-oriented Mission Statement

A purpose statement that focuses on consumer needs and wants.

Product-oriented Mission Statement

A purpose statement that focuses on the product itself rather than consumer needs.

Long-term Profit

The sustained financial gain a company aims to achieve over time.

Buyer Behavior

The decision processes and actions of consumers when purchasing products.

Loyalty Programs

Marketing strategies designed to encourage repeat business from customers.

Differentiation Factors

Attributes that make a product or service stand out from competitors.

Market Research

The process of gathering, analyzing, and interpreting information about a market.

Positioning Map

A visual representation of how brands are perceived in relation to each other.

Demographic Segmentation

Segmentation based on age, life stage, gender, income, generation, race, and culture.

Behavioral Segmentation

Segmentation based on occasion, benefit, usage rate, and loyalty status.

Benefit Segmentation

Segmentation based on the benefits consumers seek from a product (e.g. bicycles for commuting, working out, road racing, recreation).

Loyalty Status Segmentation

Segment based on degree of loyalty to brands, stores, or companies (e.g. Sephora's Beauty Insider Program).

Market Targeting

Evaluating each segment's attractiveness and selecting one or more market segments to enter.

Marketing Math

Quantitative analysis used to assess marketing effectiveness and customer value.

Competition Monitoring & Analysis

Analyzing competitors to inform marketing strategies.

SWOT Analysis

A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats related to competition or project planning.

Micromarketing

Tailoring products/programs to suit tastes of specific individuals and locations.

Local Marketing

Tailoring brands and promotions to the needs and wants of customer groups.

Individual Marketing

Tailoring products to needs and preferences of individual customers.

Advantages of Differentiated Marketing

The same company can capture various types of customers.

Advantages of Concentrated Marketing

Bigger piece of the pie (less competition).

Target Segments

Age groups 19-30 & 30-40. Young adults with increasing $$ for comforts/style.

Market Analysis

A systematic examination of the market to identify customer needs and competition.

Competitive Advantage

Delivering value better than competitors through unique product features or services.

Brand Positioning

The strategy of positioning a brand in the mind of consumers relative to competitors.

4 Ps of Marketing

Product, Price, Place, Promotion - the key elements of a marketing strategy.

Data Analytics

The process of examining data sets to draw conclusions about the information they contain.

Market Segmentation

Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies/mixes.

Disadvantages of Differentiated Marketing

Costs more to offer additional products/services.

Segmentation Type

List out a 3-5 segments for your segmentation type.

Airline Name and Value Proposition

What is your airline name? Value proposition?

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