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)