Segmentation, Targeting & Positioning MARK4210 Spring 2017
Situation Analysis (Customer, Competitor, Company) Market Selection (Segmentation, Targeting, Positioning) Marketing Mix Formulation (Product, Pricing, Distribution, Promotion) - Quantitative Analysis - Consumer Behavior Simulation Game PharmaSim Elements of Marketing Strategy Fundamentals Application Course Roadmap
The STP Process Segmentation Targeting Positioning
Market Segmentation square6 Dividing a heterogeneous market into groups of (potential) customers (i.e., market segments) with smaller groups of consumers with distinct needs, characteristics, or behaviors across groups, but homogeneous within the group – and thus, reacts differently to specific marketing strategies. Why do it? Source: A Note of Consumer Market Segmentation, Harvard Business School
Market Segmentation square6 Firms can serve the needs of segments more efficiently and effectively with products that match segment needs square6 Identify groups that can be more effectively targeted with specific marketing efforts square6 Minimizes “guessing” in formulating marketing mix strategy square6 Leads to more effective implementation of marketing mix square6 Provides basis for long range planning (e.g., market evolution, product development) Source: A Note of Consumer Market Segmentation, Harvard Business School
square6 Based on consumers market history square6 Product usage: frequency of brand/product use, brand loyalty square6 Product benefit: needs product must fill square6 Decision process: shopping patterns, information search, price sensitivity square6 Based on consumer characteristics square6 Geography square6 Demographic: age, gender, income, education level, social status square6 Psychographic: personality traits, attitudes square6 General lifestyle: activities, interests square6 No single best way to segment a market, often need to combine variables and identify smaller, better-defined target groups Typical Segmentation Variables Source: A Note of Consumer Market Segmentation, Harvard Business School
Criteria for Selecting Segmentation
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- Spring '17
- Marketing, Harvard Business School, consumer market segmentation