G Thierry Benoun

Segmentation, Targeting, Positioning

Aim : To introduce Planning segmentation, targeting and positioning

Peter Drucker (2001): “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”

OBJECTIVES :to define segmentation, targeting and positioning

to give examples of segmentation

to apply segmentation to a company

Grouping consumers or business customers within a market into smaller segments based on similarities in needs, attitudes or behaviour that marketing can address and serve better.

Ex : Shotgun different from Riffle theory

Market segmentation

Benefits of segmentation Lower marketing expenses.

Target marketing communications

Gain major portion of the market segment (J H Myers,1996)

Better matching of customer needs, Taylor product

Enhanced profits for business

Better opportunities for growth

Increased effectiveness in marketing compaign.

improves customer satisfaction

Segmentation process and Strategies Four basic factors :

(1) clear identification of the segment,

(2) measurability of its effective size,

(3) its accessibility through promotional efforts

(4) its appropriateness to the policies and resources of the company.

The four segmentation-strategies are based on

(a) behavioural

(b) demographic,

(c) psychographic

(d) geographical differences.

Apply segmentation variables in consumer markets

Customer characteristics Demographic, socioeconomic, geographic,

lifestyle/personality Product-related approaches

User types, consumption patterns, loyalty, price sensitivity, perceived benefits, application, purchase occasion, media exposure

Example of wigan and leigh college clients

Consumer market segmentation

Targeting

Kurtz, Dave. (2010) states that a target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise.

Evaluate and select segments for targeting

Eliminate undesirable segments Check segment fit with internal factors Check segment fit with opportunities and threats Select segments that play to strengths/resources Check that segment can be reached/will respond

Segments for targeting

PositioningAccording to Ries, A. and Trout, J. (1981) Positioning is about Identifying a market niche for a brand. Positioning therefore involves aspects like price, promotion, distribution, packaging, and competition. You Create a unique impression in the customer mind.

Positioning should be

based on differentiation that is relevant, believable, competitively distinctive

carried through in marketing activities, product performance

watch this

WHAT IS POSITIONING? DIFFERENCE BETWEEN VOLVO, FERRARI, LEXUS,BMW,

http://www.youtube.com/watch?v=EvtaQhxBCIU&feature=player_detailpage

Positioning

Conclusion

What is segmentation What is Targeting What is positioning What are the benefits of segmentation 4 strategies segmentation is based on

References

Drucker, Peter. (2001) The Essential Drucker, Butterworth-Heinemann Ries, A. and Trout,J. (1981) Positioning, The battle for your mind, Warner Books - McGraw-Hill

Inc., New York. Kurtz, Dave. (2010) Contemporary Marketing Mason, OH: South-Western Cengage Learning Myers,J.H.(2002) Eradication :Is it ecologically , financially, environmentally and realistically

possible? In Managing for Healthy Ecosystems.