Week 6.docx

Week 8 – Segmentation, Targeting, Positioning – Part 2 Effective Marketing Requires • Segmentation: Identify and profile distinct groups of buyers who differ in their needs and preferences. • Targeting: Select one or more market segments to enter. • Positioning: Establish and communicate the distinctive benefits of the market offering. “Market” and “Segment” Differ • Market: refers to a group of buyers (overall market) e.g., baby boomers Age 45- 63 • Segment: refers to the subgroup of buyers within the Market that have a COMMON NEED e.g., female baby boomers who are empty nesters and retired and enjoy reading Preference Patterns to Segment Needs Market Segments • Are Identified, not created: The role of the marketer is not to create the segment, but to target the segment and determine which to _________________ • Start with a Common Need: In identifying market segments, begin with understanding ___________________________ and then layer in geographic, demographic, psychographic and behavioural characteristics • Layer in other segmentation variables: GooDPUB Segmentation Process Example: Segmentation of PDA preferences, identify the small segments with a few competitors and then we make our decision that’s important to consumers Car buying market (overall market) Young, middle income car buyers (Sector) Seeking low cost basic transportation, seeking a luxurious driving experience, seeking a performance oriented machine (segment groupings)Needs-based Segmentation Segment Identification Segment attractiveness Segment Profitability Segment Positioning and come up with the 4 p’s Segment Acid Testing (test it on a target segment, look at the reactions of the marketing campa