MARK1012 Lecture Notes - Lecture 4: Swot Analysis, Micromarketing, Target Market
Chapter 6 – Segmentation, Targeting & Positioning
Step 1: Establish Overall Strategy or Objectives
• Must be consistent and derived from mission & SWOT analysis
Step 2: Segmentation Methods
• Geographic – country, region, area
• Demographic – age, gender, income, education
• Psychographic – how consumers describe themselves
Self-values refer to the overriding desires that drive how one lives their life
Self-concept is the image one has of themselves
Lifestyles – the way one lives life to achieve goals (e.g. play sport, watch sport)
• Benefit – convenience, economy, prestige
• Behavioural – basis of how consumers use product
Occasion is when a product is purchased and consumed
Loyalty is iestig i loyalty iitiaties to retai fir’s ost profitale ustoers
• Geodemographic – combines geographic, demographic & lifestyle characteristics
Step 3: Evaluate Segment Attractiveness
• Identifiable – who is in market, segments distinct from one another
• Substantial – measure size of potential target markets
• Reachable – through persuasive communications & product distribution
• Responsive – customers reacting similarly & positively to fir’s offerig
• Profitable – current & future
Segment profitability = (Segment size x segment adoption percentage x purchase
behavior x profit margin percentage) – Fixed costs
Step 4: Select Target Market
• Undifferentiated Targeting Strategy or Mass Marketing
Used if product is perceived to provide same benefits to everyone
No need to develop different strategies for different groups
• Differentiated Targeting Strategy
Target several segments with a different offering for each
• Concentrated Targeting Strategy
Selecting single, primary target market & focusing all energies on providing
produt to fit that arket’s eeds
• Micromarketing
Tailors produt to suit idiidual osuer’s ats or eeds
Cookies – computer program installed on hard drives, that provides identifying
information
Step 5: Develop Positioning Strategy
find more resources at oneclass.com
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Document Summary
Step 1: establish overall strategy or objectives: must be consistent and derived from mission & swot analysis. Step 2: segmentation methods: geographic country, region, area, demographic age, gender, income, education, psychographic how consumers describe themselves. Self-values refer to the overriding desires that drive how one lives their life. Self-concept is the image one has of themselves. Lifestyles the way one lives life to achieve goals (e. g. play sport, watch sport: benefit convenience, economy, prestige, behavioural basis of how consumers use product. Occasion is when a product is purchased and consumed. Loyalty is i(cid:374)(cid:448)esti(cid:374)g i(cid:374) loyalty i(cid:374)itiati(cid:448)es to retai(cid:374) fir(cid:373)"s (cid:373)ost profita(cid:271)le (cid:272)usto(cid:373)ers. Identifiable who is in market, segments distinct from one another: geodemographic combines geographic, demographic & lifestyle characteristics. Step 3: evaluate segment attractiveness: substantial measure size of potential target markets, reachable through persuasive communications & product distribution, responsive customers reacting similarly & positively to fir(cid:373)"s offeri(cid:374)g, profitable current & future.
