Marketing Unit 5
What position do you currently own?
What position do you want to own?
Whom do you have to defeat to own the position you want.
Do you have the resources to do it?
Can you persist until you get there?
Are your tactics supporting the positioning objective you set?
Market segmentation-dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
Segmenting consumer markets
Geographic segmentation
divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods
Demographic segmentation
divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Psychographic segmentation
divides a market into different segments based on social class, lifestyle, or personality characteristics.
Behavioral segmentation
divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
Multiple Segmentation- identifies smaller, better-defined target groups.
Experian’s Mosaic U S A-system that classifies U.S. households into one of 71 lifestyle segments and 19 levels of affluence.
Consumer and business marketers use many of the same variables to segment their markets. Additional variables include:
Customer operating characteristics
Purchasing approaches
Situational factors
Personal characteristics
Intermarket segmentation-forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
Geographic location
Economic factors
Political and legal factors •
Cultural factors
Measurable
Accessible
Substantial
Differentiable
Actionable
Segment size and growth
Segment structural attractiveness
Company objectives and resources
Target Market- a set of buyers who share common needs or characteristics that the company decides to serve.
Undifferentiated marketing-targets the whole market with one offer. (mass marketing and focusing on what’s needed and not what’s different)
Differentiated marketing- targets several different market segments and designs separate offers for each. Goal is to achieve higher sales and stronger position. More expensive than undifferentiated marketing
Differentiated marketing example. With more than 30 differentiated hotel brands, Marriott International dominates the hotel industry, capturing a much larger share of the travel and hospitality market than it could with any single brand alone.
Concentrated marketing- targets a large share of a smaller market. Limited company resources, Knowledge of the market, and More effective and efficient
example) Nicher Harry’s concentrates its resources on direct-to-consumer sales of high-quality razors and shaving products to a value- and convenience oriented segment of buyers previously not well served by giant competitors like Gillette.
Micromarketing-the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Local marketing and individual marketing.
Local marketing-tailoring brands and promotion to the needs and wants of local customer segments. neighborhoods, cities, and towns.
involves tailoring products and marketing programs to the needs and preferences of individual customers. also known as one to one marketing or mass customization.
Product position- the way the product is defined by consumers on important attributes.
Positioning maps- show consumer perceptions of marketer’s brands versus competing products on important buying dimensions.
Choosing a Differentiation and Positioning Strategy
Identifying a set of possible competitive advantages to build a position
Choosing the right competitive advantages
Selecting an overall positioning strategy
Communicating and delivering the chosen position to the market
Competitive advantage- is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
Value proposition- is the full mix of benefits upon which a brand is positioned
Positioning statement- summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference)
What position do you currently own?
What position do you want to own?
Whom do you have to defeat to own the position you want.
Do you have the resources to do it?
Can you persist until you get there?
Are your tactics supporting the positioning objective you set?
Market segmentation-dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
Segmenting consumer markets
Geographic segmentation
divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods
Demographic segmentation
divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Psychographic segmentation
divides a market into different segments based on social class, lifestyle, or personality characteristics.
Behavioral segmentation
divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
Multiple Segmentation- identifies smaller, better-defined target groups.
Experian’s Mosaic U S A-system that classifies U.S. households into one of 71 lifestyle segments and 19 levels of affluence.
Consumer and business marketers use many of the same variables to segment their markets. Additional variables include:
Customer operating characteristics
Purchasing approaches
Situational factors
Personal characteristics
Intermarket segmentation-forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
Geographic location
Economic factors
Political and legal factors •
Cultural factors
Measurable
Accessible
Substantial
Differentiable
Actionable
Segment size and growth
Segment structural attractiveness
Company objectives and resources
Target Market- a set of buyers who share common needs or characteristics that the company decides to serve.
Undifferentiated marketing-targets the whole market with one offer. (mass marketing and focusing on what’s needed and not what’s different)
Differentiated marketing- targets several different market segments and designs separate offers for each. Goal is to achieve higher sales and stronger position. More expensive than undifferentiated marketing
Differentiated marketing example. With more than 30 differentiated hotel brands, Marriott International dominates the hotel industry, capturing a much larger share of the travel and hospitality market than it could with any single brand alone.
Concentrated marketing- targets a large share of a smaller market. Limited company resources, Knowledge of the market, and More effective and efficient
example) Nicher Harry’s concentrates its resources on direct-to-consumer sales of high-quality razors and shaving products to a value- and convenience oriented segment of buyers previously not well served by giant competitors like Gillette.
Micromarketing-the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Local marketing and individual marketing.
Local marketing-tailoring brands and promotion to the needs and wants of local customer segments. neighborhoods, cities, and towns.
involves tailoring products and marketing programs to the needs and preferences of individual customers. also known as one to one marketing or mass customization.
Product position- the way the product is defined by consumers on important attributes.
Positioning maps- show consumer perceptions of marketer’s brands versus competing products on important buying dimensions.
Choosing a Differentiation and Positioning Strategy
Identifying a set of possible competitive advantages to build a position
Choosing the right competitive advantages
Selecting an overall positioning strategy
Communicating and delivering the chosen position to the market
Competitive advantage- is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
Value proposition- is the full mix of benefits upon which a brand is positioned
Positioning statement- summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference)
