Comm 296 - Chapter 7

Comm 296 - Chapter 7 - Comm 296 Segmentation, Targeting and...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Comm 296 Segmentation, Targeting and Positioning - Companies have moved away from mass marketing and toward market segmentation and targeting Segmentation : dividing a market into distinct groups with distinct needs, characteristics or behaviours that might require separate marketing strategy of mixes (4 P’s) Targeting : process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Differentiation : actually differentiating the market offering to create superior customer value Positioning : arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers MARKET SEGMENTATION SEGMENTING CONSUMER MARKETS - 4 major variables Geographic Segmentation Geographic segmentation : dividing a market into different geographical units, such as global regions, countries, regions within a country, provinces, cities, or even neighborhoods - Firm needs to pay attention to geographical differences in needs and wants - Localize products, advertising, promotion and sales efforts to fit needs of individual regions and cities - Firms look to cultivate untapped geographic territory – moving away from large cities into suburbs - Small businesses focus marketing efforts on a local region within a few km’s from their location - Destination-type businesses (eg restaurants) might market to a larger region Demographic Segmentation Demographic segmentation : dividing the market into segments based on variables such as age, gender, family size, life cycle, household income (HHI), occupation, education, ethnic or cultural group, and generation - Most popular – consumer needs/wants vary with demographic variables - Easier to measure than others Age and Life-Cycle Segmentation Age and life-cycle segmentation : dividing a market into different age and life-cycle groups - Segment markets based on age or family status o Children, older adults - Segment markets based on life-cycle stage o Marriage, young family, retirement Gender Segmentation Gender segmentation : dividing a market into different segments based on gender - Clothing, cosmetics, toiletries, magazines - Women make 70% of shopping decisions - Neglected gender segment can offer new opportunities (eg target women for Harley-Davidson) Household Income (HHI) Household Income (HHI) segmentation : dividing a market into different income segments - Total income for the family, whether one or both parents work - Target affluent (well-off) customers with luxury goods - Target low/middle-income consumers with cheaper goods Ethnic or Cultural Group - Segment based on race, ethnicity and language o Eg Chinese, Quebec Psychographic Segmentation
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Comm 296 Segmentation, Targeting and Positioning Psychographic segmentation : dividing a market into different segments based on social class, lifestyle, or personality characteristics - People of the same demographic group have different lifestyles/social class/personality - Personality characteristics (eg adventure seekers)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Comm 296 - Chapter 7 - Comm 296 Segmentation, Targeting and...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online