Marketing The Core - Chapter 06 - PDF

CHAPTER 06 SEGMENTATION, TARGETING, AND POSITIONING © 2021 McGraw-Hill Education Limited Prepared by: Maria Vincenten, Red River College Learning Objectives 1. Explain market...

CHAPTER 06 SEGMENTATION, TARGETING, AND POSITIONING © 2021 McGraw-Hill Education Limited Prepared by: Maria Vincenten, Red River College Learning Objectives 1. Explain market segmentation and its relevance to marketing 2. Detail the different forms of market segmentation 3. Describe the elements included in target market profiles and personals © 2021 McGraw-Hill Education Limited 2 Learning Objectives (continued) 4. Have insight into the scope of segmentation analytics 5. Outline the steps involved in segmenting a market 6. Explain the concept of product positioning © 2021 McGraw-Hill Education Limited 3  River Ranche Tourism and Lodge Siksika Indigenous tourism is one of the fastest growing sections of the tourism industry Provides opportunities to promote greater cultural understanding while increasing Indigenous peoples’ capacity and economy © 2021 McGraw-Hill Education Limited 4  Segmentation, Targeting, and Positioning “Segmentation, targeting, and product positioning are fundamental concepts that are central to how marketers run their businesses and market their products.” Having a clear position in the market allows more focused and consistent communication with customers in a meaningful way © 2021 McGraw-Hill Education Limited 5  Market Segmentation 1) Consumers have a range of different needs, and a single product cannot satisfy everyone 2) Companies have limited amounts of money, and it needs to be spent efficiently and effectively on consumers who are most likely to purchase the product 3) Marketers need to have clear consumer insights on their target markets in terms of product needs, price expectations, purchase habits, and the communication tools most used © 2021 McGraw-Hill Education Limited 6 Market Segmentation (continued) There are two main market segments 1) Consumer Market – goods, services, and ideas for personal use 2) Business Market – products to run a business or be used as a component in another good or service © 2021 McGraw-Hill Education Limited 7 Market Segmentation (continued) Market Segmentation – aggregation of prospective buyers into groups that have common needs and respond similarly to marketing programs – Relatively homogeneous – Similar consumption behaviour, attitudes, and profiles – Leads to Product Differentiation © 2021 McGraw-Hill Education Limited 8 Forms of Market Segmentation Mass Segment Niche Individual © 2021 McGraw-Hill Education Limited 9 Forms of Market Segmentation (continued) “Every customer is unique, has particular wants and needs, and requires special care from the seller.” The key to successful product differentiation and market segmentation strategies lies in finding the ideal balance between satisfying a customer’s individual wants and being able to do this profitably. © 2021 McGraw-Hill Education Limited 10  Creating Customer Value Customer Value Proposition Unique combination of benefits received by targeted buyers that will satisfy their needs Copyright 2021 Conestoga College / McGraw-Hill Publishing 11  Target Market Profiles and Personas Target Market – specific group or segment(s) of existing and potential consumers to which marketers direct their marketing efforts © 2021 McGraw-Hill Education Limited 12 Segmentation Variables in Consumer Markets Geographic Demographic Psychographic Behaviouristic Where does What is the What are the How does the target basic census- prevailing this target market live type attitudes, market use and work? information values, and interact on the target interests, with the market as a habits, and product? whole? approaches to life that this target market shares? © 2021 McGraw-Hill Education Limited 13  Personas Persona – character descriptions of a brand’s typical customer – Brings data alive; “day in the life” © 2021 McGraw-Hill Education Limited 14  Segmentation Analytics Research companies can provide: general data on size and growth of markets, as well as general consumer and lifestyle trends – Nielsen or Euromonitor data on a more granular basis to pinpoint information on population clusters – Environics Analytics, Pitney Bowes, and SuperDemographics – also Manifold Data Mining © 2021 McGraw-Hill Education Limited 15 Segmentation Analytics (continued) The Six Key Tribes of Millennials: © 2021 McGraw-Hill Education Limited 16  Steps in Market Segmentation Marketer needs to combine: – strong analytical skills, – sound strategic thinking, – an understanding of the consumer, – a vision on where the market is heading, and – how this all fits with the company’s direction. © 2021 McGraw-Hill Education Limited 17 Steps in Market Segmentation (continued) Figure 6–3 The six-step process for segmenting a market Steps in Market Segmentation 1. Identify consumer/customer needs and common characteristics in the market. 2. Cluster common consumer/customer variables to create meaningful market segments. 3. Estimate the size and feasibility of each segment. 4. Identify the segment(s) to be targeted. 5. Take actions with marketing programs to reach the segment(s). 6. Monitor and evaluate the success of these programs compared with objectives. © 2021 McGraw-Hill Education Limited 18  Positioning Product Positioning – the impression of the branded product you want to establish in the consumers’ minds relative to their needs and also in contrast to the competition. – Image – Product attribute – Price © 2021 McGraw-Hill Education Limited 19  Positioning (continued) “Positioning statements are simple, clear, and focused.” Contain these elements: 1) Target market and need 2) Branded product name 3) Category in which it competes 4) Brand’s unique attributes and benefits For (target market) who desire (target market need), (brand) is the (product category) that offers (product benefits). © 2021 McGraw-Hill Education Limited 20  Repositioning Companies reposition when long-term changes in consumer attitudes or opinions of the brand require a shift in the brand’s image to more accurately meet consumer needs and to reflect how it fits their lifestyle and needs © 2021 McGraw-Hill Education Limited 21  Positioning Maps 1) Identify the important attributes for a product or brand class 2) Discover how target customers rate competing products or brands with respect to these attributes 3) Discover where the company’s product or brand is on these attributes in the minds of potential customers © 2021 McGraw-Hill Education Limited 22 Positioning Maps (continued) © 2021 McGraw-Hill Education Limited 23