MKT 100 Lecture Notes - Lecture 7: Market Segmentation, Loyalty Program, Target Market
Chapter 7. Segmentation, Targeting and Positioning (STP)
Segmentation - identifying meaningfully different groups of customers
Targeting - selecting which segments to serve
Positioning - implementing chosen image and appeal to chosen segment
Market segment - a group of customers who share a similar set of needs and wants
within an overall market.
Market segmentation - the process of identifying and categorizing the overall market
into groups of customers with similar needs and wants.
Target market - the qualified available market segment that company pursues.
Ste p 1: Establish overall strategy or objectives
Articulate the mission and the objectives of the company’s marketing strategy
clearly
Derived from its SWOT
Step 2: Segmentation bases
Formal approach to segment the market
Develops descriptions of the different segments, their needs, wants and
characteristics.
Geographic segmentation: organizes consumers into groups of where they live.
Countries
Demographic segmentation: groups consumers according to easily measured objective
characteristics
Age
Gender
Income
Education
Not every useful.( e.g jogging suits and athletic shoes)
Stereotyping could lead to poor STP strategies
Psychographic segmentation. How consumers describe themselves
Self-values: life goal (self-respect, self-fulfillment, a sense of belonging)
Self-concept: the image people have of themselves (i.e Loreal uses the tagline
“Because I’m worth it)
Lifestyle: how we live lives to achieve goals.
Behavioural segmentation: Groups of consumers based on the benefits they derive from
products or services.
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Document Summary
Segmentation - identifying meaningfully different groups of customers. Positioning - implementing chosen image and appeal to chosen segment. Market segment - a group of customers who share a similar set of needs and wants within an overall market. Market segmentation - the process of identifying and categorizing the overall market into groups of customers with similar needs and wants. Target market - the qualified available market segment that company pursues. Ste p 1: establish overall strategy or objectives. Articulate the mission and the objectives of the company"s marketing strategy clearly. Develops descriptions of the different segments, their needs, wants and characteristics. Geographic segmentation: organizes consumers into groups of where they live. Demographic segmentation: groups consumers according to easily measured objective characteristics. Self-values: life goal (self-respect, self-fulfillment, a sense of belonging) Self-concept: the image people have of themselves (i. e loreal uses the tagline. Lifestyle: how we live lives to achieve goals.
