Segmentation, targeting and positioning Market segmentation - Identification of sub-sets of buyers within a market who share similar needs and who have similar buying processes. Segmentation Targeting and positioning process (STPP) 1. Select Market 2. Define buyer 3. Market segmentation 4. Market Targeting 5. Market Positioning 6. Create and execute marketing mix Market selection consideration - Homogeneous population within a segment - Heterogenous population between segments - Must be capable – (MAD) buyer should have money- ability- authority- decision- desireneed – want - Size now and in future - Must be accessible How to segment personal use buyer – DPB Demographic- age, gender, occupation income, geographic, education, religion, lifecycle Psychographic- lifestyle, personal value, personality, opinions, Prizms tool, VALs survey Behaviour- occasions, degree of loyalty, benefits, sought, usage readiness stage, user status Segmenting Business markets (B2B) firmographics - Bases for segmenting business markets - Size of firm in terms of employees - Firmographics are to business and organizations what demographics are to people Market targeting - Size of the prize? Measurable, accessible, substantial and distinct which are: - Current size, future size? - Low growth, high growth? - Profitable Internal Environment - Resources - Expertise - Core competence Target market Targeting strategy - Mass marketing (undifferentiated): Business targets the whole market, ignoring segments, focus on what customers need and want in common, not how they differ Segmented (differentiated) - Companies target several markets within the same market Focus (specialization) - Companies target one segment with a single marketing mix Micro customization (micro marketing) - Try to be unique to every consumer by tailoring product specifically meet there need. Must develop customer intimacy excellence. Positioning strategy selection (perceptual map) - Product positioning – the impression of the branded product you want to establish in the consumers’ minds relative to establish in the consumers’ minds relative to their needs and in contrast to the competition - The way consumers, users, buyers, and others view competitive brands or types of products - Companies are doing this by: - Product attributes/features - Service bundles - Channel access - People serving you - Brand image Positioning statements are simple, clear, and focused 1. Target market and need 2. Branded product name 3. Category in which it competes 4. Brands unique attributes and benefits Positioning statement - Hello fresh provides a fresh new outlook to food for people who simply don’t have the time to cook, why spend time on food when you could be working out, working, or spending time with family. We provide the healthiest food that keeps your body in tune with your life. Right to your door!
