Class Intro 4
From AlexBrownRacing
Segmentation and Positioning
Segmentation: Defining Markets; Dimensions for Segmentation; Identifying Segments; Identifying Segments to Target; Segmentation Approaches
Positioning: Understand Customer's View; Positioning Techniques; Evaluating Segment Preferences; Differentiating Marketing Mix; Relationship between Positioning and Targeting
Identify a Company's Market: not product focused; Generic Markets to Product Markets; Broaden Market Definition to Seek Opportunities
Generic Market Definition includes: Customer Needs; Customer Types; Geographic Area
Product Market Definition: add Product type to the above
Segmentation is a Two Step Process:
1. Naming Broad Product-Markets
2. Segmenting Markets to Select Target Market(s) and Designing Marketing Mixes
Narrowing it all down from the top: All customer needs > Some generic market > One broad product-market > Homogenrous product-markets > Single target market vs Multiple target markets vs Combined target markets
Example: Bicycle riders (Broad Product-Market) > Exercisers (Homogenous product-market); Transporation riders; Socializers; Off road adventurers; Environmentalists
Single target market approach: only focus on one segment: example Excercisers
Multiple target market approach: target Exercisers; Transportation riders and Socilizers: each with its unique Marketing Mix
Combiner target market approach: include Exercisers and Transportation riders as one group: one Marketing Mix
Segmenting versus Combining: Segmenters is more tailored to specific needs, combiners more of a compromize. Segmenting may produce more sales, but at what cost ? Profitability defines approach.
Exhibit 4-8
Behavioral Segmentating Dimensions: needs; benefits sought; thoughts; rate of use; purchase relationship; brand familiarity; kind of shopping; type of problem solving; information required
Geographic Segmenting Dimensions: Region of World, country; region in a country; size of city
Demographic Segmenting Dimensions: Income; sex or age; family size, family lifecycle; occupation, education; ethnicity, social class
Segmenting Dimensions for Business Markets: relationship; type of customer; demographics; use of product; type of buying situation; purchasing methods
Qualifying Dimensions: core benefits; customer type on a product-market (broad and fundamental)
Determining Dimensions: more defined; determines brand selection
All potential dimensions > qualifying dimensions > determining dimensions (product type) > determining dimensions (brand selection)
More sophisticated segmenting techniques include "clustering" and Customer Relationship Management (CRM) tools.
Positioning
Product space mapping: exhibit 4-11. Two dimensional: moisturizing and deodorant for soap.
Positioning Statement, provides direction for marketing strategy.
WSJ: Asics Races to Build Its Brand
Which market segment is Asics targeting ? How ? Who are its main competitors ? What are other market segments for sneakers ?
