Business Marketing Segmentation and Targeting PDF

Principles of Marketing Lesson 3: Segmentation and Targeting Strategic Planning process of developing and maintaining a strategic fit between the organization's goals and capabilities, and its changing marketing opportunities. Steps in Strategic Planning 1. Defining t...

Principles of Marketing Lesson 3: Segmentation and Targeting Strategic Planning process of developing and maintaining a strategic fit between the organization's goals and capabilities, and its changing marketing opportunities. Steps in Strategic Planning 1. Defining the company mission 2. Setting company objectives and goals 3. Designing the business portfolio 4. Planning marketing and other functional strategies Marketing Research systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. Marketing Research process of determining the viability of a new service or product through research conducted directly with potential customers. Marketing Research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product or service. Segmentation and Targeting Segmentation is the process of dividing potential customers into groups to better understand them Targeting is determining which segments are most likely to become customers and directing marketing efforts to best satisfy them Five Criteria for a Market 1. There must be a true need and/or want for the product, service, or idea; this need may be recognized, unrecognized, or latent 2. The person/organization must have the ability to pay for the product via means acceptable to the marketer 3. The person/organization must be willing to buy the product 4. The person/organization must have the authority to buy the product 5. The total number of people/organizations meeting the previous criteria must be large enough to be profitable for the marketer Choosing a Target Market The target market should include only those segments of a market that are both: Profitable to serve Likely to be receptive to the products a company provides What products or companies would find this market segmentation by family life stage useful? Common Market Segmentation Approaches Type of Approach Segmentation Criteria Nations, states, regions, cities, neighborhoods, zip Geographic codes, etc. Age, gender, family size, income, occupation, Demographic education, religion, ethnicity, and nationality Psychographic Lifestyle, personality, attitudes, and social class User status, purchase occasion, loyalty, readiness Behavioral to buy Decision maker Decision-making role (purchaser, influencer, etc.) Sample Market Segment Profiles Questions to Consider in Selecting a Target Segment Whose needs can you best satisfy? Who will be the most profitable customers? Can you reach and serve each target segment effectively? Are the segments large and profitable enough to support your business? Do you have the resources available to effectively reach and serve each target segment? Shaping Marketing Mix for Target Markets Marketing Targeting Criteria Element Product What would make the ideal product for your target segment? What special features or capabilities are critical for this segment? What unique problems does your product help them solve? Promotion What are the best ways to get your target segment’s attention? What do you want this segment to remember about your product? Place / Where does this segment look or shop for your product? Distribution What is the best way to get your product to your target customers? Price What price(s) are your target customers willing to pay? How much is too expensive? How much is too cheap?