WEEK 7 Target Market Perceptual Mapping Overview

TARGET MARKETING

  • Divides a market into segments.

  • Focused efforts on key segments matching product/service offerings.

  • Aims to attract new business, increase sales, and ensure success.

IMPORTANCE OF TARGET MARKETING

  • Directs marketing efforts towards specific consumer groups.

  • Simplifies promotion, pricing, and distribution.

  • Essential for success; one size does not fit all.

TARGET MARKETING STRATEGIES

  • Undifferentiated Marketing: Same product for entire market without considering differences.

  • Differentiated Marketing: Different products for different segments.

  • Concentrated Marketing: Focus on one or few segments/niches for a larger share in those markets.

  • Micromarketing: Tailoring marketing programs for specific locations or individuals.

POSITIONING

  • Refers to the brand's space in customers' minds.

  • Creates a distinctive perception of the product or service.

  • Essential for customer retention and brand image.

SEVEN POSITIONING STRATEGIES

  1. Product Characteristics/Customer Benefit: Focus on product attributes or benefits.

  2. Pricing Quality: Higher pricing associated with premium quality (e.g., BMW, Mercedes).

  3. Use/Application: Positioning based on unique uses or applications of the product.

  4. Product User: Linking product with specific user groups (e.g., fashion-conscious).

  5. Product Class: Promoting related products together enhances positioning.

  6. Cultural Symbol: Using meaningful cultural symbols for differentiation.

  7. Competitors: Positioning strategies may reference competitors' positioning.

SEGMENTATION, TARGETING, AND POSITIONING (STP)

  • Tools to align products/services with the right customers.

  • Segmentation: Classifies customers by needs/wants.

  • Target Marketing: Targets specific customer segments.

  • Positioning: Develops brand image for customer delight.

PERCEPTUAL MAPPING

  • Visual tool for representing customer perceptions of products/brands.

  • Dimensions can include price, quality, style, and performance.

PERCEPTUAL MAPPING PROCESS

  1. Define Objectives: Determine purpose of the perceptual map.

  2. Identify Key Attributes: Select two key dimensions relevant to the market.

  3. Select Brands/Products: Choose brands for comparison.

  4. Gather Data: Collect consumer perception data via surveys or research.

  5. Plot Data: Place brands on the map based on ratings.

  6. Analyze Map: Identify clusters, gaps, and outliers for strategic insights.

  7. Develop Strategic Actions: Use insights for product development, positioning, or targeting.

  8. Monitor and Update: Regularly track shifts in consumer perceptions.

MONITORING NEED

  • Market and preferences are dynamic; perceptual maps must be updated regularly.