BBIT 2105 - SEGMENTATION, TARGETING AND POSITIONING APRIL TO JUL 2020 V2.ppt

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|BBIT 2105SEGMENTATION , TARGETING AND POSITIONING[email protected]
|Learning ObjectivesTo be able to define the three steps of target marketing-Market Segmentation,Target Marketing and Market PositioningTo know how organizations identify attractive market segments, and how theychoose a target marketing strategyTo understand the major basis for segmenting consumer and business marketsTo comprehend how companies position their products for maximum competitiveadvantage
|The Development of Market SegmentationThe father of market segmentation is widely considered to be Wendall Smith,who proposed market segmentation as an alternative to product differentiation
|Why Market Segmentation mattersThe importance of market segmentation is highlighted by considering thefollowing situation:When something new is invented. Not everyone adopts it at the same timeAll organizations need to better understand all their customers and thecomplexity of the market, and this is where market segmentation is crucial
|Diffusion ProcessInnovators- are first to buy and typically described as venturesome, younger,well educated, financially stable, and willing to take risks.Early Adopters- are local opinion leaders who read magazines and who areintegrate into the social system more than the average consumer
|Diffusion ProcessEarly Majority- solid, middle-class consumers who are more deliberate andcautiousLate Majority- described as older, more conservative, traditional, andskeptical of new products
|How Markets SegmentThe clamor for market share in the market has caused organizations worldwideto pay more attention to consumer needs and this is why market segmentationmatters.
|Market SegmentationKey ConceptMarket Segmentation is the subdividingof the market into distinctandincreasingly homogenous subgroups of customers,where any subgroup canconceivably be selected as a target market to be met with a distinct marketingmix
|Why segment?Most efficientMost effectiveOne MassMarketMany Groupsof One
|Markets have a variety of productneeds and preferences.Marketers can better definecustomer needs.Decision makers can define objectivesand allocate resources more accurately.The Importance of Market Segmentation
|No Market Segmentation
|Segmented by Gender
|Segmented by Age
|Segmentation ProcessMarketers follow two methods to determine the bases on which to identify markets:Segments are predefined by managersbased on their observation of the behavioral anddemographic characteristics of likely usersSegments are defined by asking customerswhich attributes are important and then clustering theresponses
|LO4Characteristics of individuals, groups, or organizations used to divide a total market intosegments.

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Term
Summer
Professor
d john
Tags
Marketing, Target Marketing and Market Positioning

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