Marketing Segmentation, Targeting and Positioning
In this chapter, Marketing Segmentation, Targeting and Positioning which is refereed as marketing strategy we will discuss the following :
- Market Segmentation
- Effective Segmentation
- Bases for Market Segmentation
- Marketing Targeting Strategies
- Target Audience
- Positioning of a Product
Market Segmentation is the process of dividing the total market into total heterogeneous market into relatively distinct homogeneous t sub groups of consumers with common needs and characteristics and selecting one or more segments to target with distinct marketing program.
The following 5 conditions must exist for effective market segmentation :
- Firm must determine whether the market is heterogeneous
- There must be logical basis to identify and divide the population in relatively distinct homogeneous groups
- The total market should be divided so that comparison of estimated sales potential, costs and profits of each segment are estimated
- Segments must have enough sales potential
- It must be possible to reach the targeted segment effectively.
Bases for Market Segmentation
- Geographic Segmentation
- Demographic Segmentation
- Behavioristic Segmentation
- Psychographics segmentation
Market Targeting Strategies
|Undifferentiated Marketing||Differentiated Marketing||Concentrated Marketing|
|Whole marketing with an offer and ignore segment||decide to target several different market segments separate||Concentrate on one, or a few, segments or niches|
Target Audience refers to the specific group of consumers most likely to want your product or service and therefore, the group of people who should see your ad campaigns. Target audience may be dictated by age, gender, income , location , interests of a myriad of other factors.
Identification of Target Audience is helpful in advertising planning in following ways :
- Designing Advertising Copy the entire message and appeal which the advertiser wants to convey . The content , design, layout of the copy largely defunds on the profiting of the target audience.
- Determining Advertising appeal is the approach to attract the attention of the prospective consumer.
- Determining Media Mix and Media Vehicle Medium is the general category of available delivery system such as broadcast media , print, direct mail etc.
- Determining message source It refers to the spokesperson involved directly or indirectly in delivering the advertising message.
Positioning of Product
Position is the way product or the brand its defined by consumers on important attributes. For eg . HUL’s ” LUX ” is the beauty soap , Maggi brand of noodles is “Two minute noodle ” , BMW is positioned as “The ultimate driving machine.”
Positioning by corporate identity
Companies that have become tried and trusted brands use their corporate identity to imply competitive superiority of their brands such as Tata , Sony Godrej etc.
Positioning by Attributes and Benefits
It involves setting brand apart from the competitors based on the specific attributes and benefits offered . For eg . close up is positioned as fresh breath.
Positioning by Occasion and Time
Idea behind this positioning approach is to find an occasion or time of use for eg. Vicks Vaporub is used to for cold.
Positioning by Price Quality
One for consumers looking for value of money as purchase consideration. Another dimension high quality and the price is kept high to communicate high quality .
Positioning by product Category
It is used so that the brand is perceived as belonging to another product category.
Positioning by Product User
The brand manager can determine a target segment for which the product will be positioned.
Positioning by competitor
Markets want consumers to believe that the brand is superior or at least as good as offered by the competiors.
Determining Positioning Strategy
- Identify the competitors
- Determine the competitors are perceived and evaluated
- Determine Competitor’s position
- Analyze the customer
- Select the position
- Monitor the position
Repositioning of product
It refers to changing the position of product in minds of target market. It involves Updating the perception and understanding of prospects with regard to product features.
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