Segmentation, Targeting & Positioning MARK4210 Spring 2018
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 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 Firms can serve the needs of segments more efficiently and effectively with products that match segment needs Identify groups that can be more effectively targeted with specific marketing efforts Minimizes “guessing” – leads to more effective formulation and implementation of marketing mix Provides basis for long term planning (e.g., market evolution, product development) Source: A Note of Consumer Market Segmentation, Harvard Business School
Based on consumers market history Product usage: frequency of brand/product use, brand loyalty Product benefit: needs product must fill Decision process: shopping patterns, information search, price sensitivity Based on consumer characteristics Geography Demographic: age, gender, income, education level, social status Psychographic: personality traits, attitudes General lifestyle: activities, interests 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 Variables Differentiable
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- Spring '17
- Marketing, Harvard Business School, consumer market segmentation