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Tema 3 Mkint

1. Market segmentation involves dividing the market into groups with distinct needs. Target marketing requires market segmentation, targeting specific segments, and positioning the product in consumers' minds relative to competitors. 2. There are three stages of the market: mass marketing, product variety marketing, and target marketing which involves segmentation, targeting, and positioning. 3. Targeting strategies include undifferentiated strategy for the whole market, differentiated strategy targeting several segments separately, and concentrated strategy targeting a large share of one or few small segments.

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50 views

Tema 3 Mkint

1. Market segmentation involves dividing the market into groups with distinct needs. Target marketing requires market segmentation, targeting specific segments, and positioning the product in consumers' minds relative to competitors. 2. There are three stages of the market: mass marketing, product variety marketing, and target marketing which involves segmentation, targeting, and positioning. 3. Targeting strategies include undifferentiated strategy for the whole market, differentiated strategy targeting several segments separately, and concentrated strategy targeting a large share of one or few small segments.

Uploaded by

Doina Bega
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Market segmentation, targeting

and positioning

1. Market
segmentation
2. Market targeting
3. Market positioning
The term “market”

 The term “market” has acquired many


meanings over the years. In it’s original
meaning, a market was a location where
buyers and sellers met to exchange goods
and services.
 To a marketer a market is the set of all
actual and potential buyers of a product.
The market, in its evolution has passed through 3
stages:

– Mass marketing – During this stage the seller mass


produces, mass distributes and mass promotes one product
to all buyers. The advantage of mass marketing is that it
should lead to cost economies and create the largest
potential market.
– Product variety marketing - - The seller produces 2 or more
products that have different features, style, quality or size.
They offer variety to the buyers, but do not appeal to
different segments of consumers.
– Target marketing, -the seller identifies different groups of
consumers, selects one or more of them and develops
products and marketing mixes for each of them.
3. Target marketing

Target marketing calls for 3 steps:


 Market segmentation
 Market targeting
 Market positioning
1. Market segmentation variables:

 Market segmentation means dividing a market into


different groups of buyers who might require
separate products or marketing mixes. There are
different market segmentation variables (factors):
1. Geographic variables – These variables include:
– region,
– City size.
– Country size,
– density or
– climate
Market segmentation variables:
2. Demographic variables – These variables include:
– Age,
– gender,
– family size,
– income,
– occupation,
– education,
– religion,
– race,
– nationality and
– family life cycle :1)young, single, 2)Young married no children 3) young
married child under 6 4)young married child over six, 5) old married no
children 6) Old single no children, 7) Old married no children under 18)
Market segmentation variables:

3. Psychographic variables – They include:


 lifestyle,
 personality and
 social class :1) Lower lowers
 2) Upper lowers
 3) Working class
 4) Middle class
 5) Upper middles
 6) Lower uppers
 7) Upper uppers
Market segmentation variables:

4) Behavioristic variables – Include:


– Purchase occasion(Regular, special),
– usage rate(light, medium, high rate user),
– loyalty status,
– attitude towards the product,
– benefits.
Requirements for an effective segmentation:

 Measurability – the degree to which the size and


purchasing power of segments can be measured.
 Accessibility – the degree to which segments can be
reached and served.
 Substantiality - the degree to which segments are
large and profitable enough
 Actionability – The degree to which effective
marketing programs can be designed for attracting
and serving segments
2. Market targeting

 Market targeting means evaluating each


segment’s attractiveness and selecting one
or more of the market segments to enter.
Market targeting has 3 strategies:

1. Undifferentiated strategy –
Using this strategy the company might decide to ignore market
segment differences and go after the whole market with one
market offer. It focuses on what is common in the needs of
consumers. It designs a product and marketing program that
appeal to the most buyers. This strategy relies on mass
distribution and mass advertising. It provides cost economies
but most modern marketers have strong doubts about this
strategy because it is difficult to develop a product or a brand
that will satisfy all consumers.
Market targeting has 3 strategies:

2. Differentiated marketing
Using this type of strategy the firm decides to target several
market segments and designs separate offers for each. This
strategy hopes for higher sales and a stronger position within
each market segment.
Differentiated marketing typically creates more total sales than
undifferentiated marketing(1) but it also increases the costs of
doing business.
Market targeting has 3 strategies:

3. Concentrated strategy
This strategy is especially appealing when the company resources
are limited. Instead of going after a small share of a large
market, the firm goes after a large share on or a few small
submarkets. Through this strategy the company achieves a
strong market position and a special reputation. It enjoys
many operating economies because of specialization in
production, distribution and promotion. If the segment is
chosen well the company can obtain a high rate of return on
it’s investments. But this strategy also involves some risks:
 The particular market segment can become too small
 Larger competitors may decide to enter the same segment
Factors that influence of choosing marketing
strategy:

 Company resources – If the company resources are limited >>>


concentrated strategy recommended or undifferentiated
 Product variability – Undifferentiated strategy is more suitable
for uniform goods such as agricultural products
 Product’s stage in its life cycle – When the company introduces
a new product an undifferentiated marketing is recommended.
In the maturity stage differentiated strategy is most
recommended.
 Market variability – Means the common characteristics and
behaviors of buyers.
 Competitors marketing strategies – When competitors use
segmentation, differentiated strategy is recommended.
3. Market positioning

 A product’s position is the way the product is


defined by consumers on important
attributes. Positioning means the place the
product occupies in consumer’s minds
relative to competing products. A product’s
position is the complex set of perceptions,
impressions and feelings that consumers
hold for a certain product.
There are several positioning strategies:

 The product may be positioned on its specific


attributes.(quality, economy, safety etc.)
 Products can be positioned on the needs they fulfill
or the benefits they offer.
 The product can be positioned according to usage
occasions.
 Product can be positioned for a certain class of
users.
 It can be positioned against a competitor.
 Product can be positioned away from competitors.

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