Segmenting, Targeting and Positioning
Reasons to Segment
Allows marketers to focus their resources on the most promising opportunities.
Improves marketing efficiency and effectiveness.
Enables marketers to notice changes in the segment and to respond more
Process of Segmenting
Select the market
Review your previous market and customer research. Which overall market will
you select for your brand, product or service?
For purposes of segmentation, the overall market may be defined on the bas
Planning Direction, Objectives and Marketing Support
Determining Marketing Plan Direction
Goals and Objectives
o Goals: Long-term performance targets.
o Objectives: Short-term performance targets.
The direction chosen must be consistent with the organizat
Developing product and brand strategy
Product strategy is critical to the success of the overall marketing strategy.
Value is captured in two key areas:
o Product Strategy
Existing and proposed products.
Features, supplementary services, qu
Boston Consulting Group (BCG) Growth-Share Matrix
A product portfolio is comprised of all the products which an organization has. A product portfolio may comprise of
different categories of products, different product lines, and finally the individual pro
This mass market approach ignores any segment differences and is based on the assumption that
one market strategy for the entire market will yield results in all segments. Although
undifferentiated marketing requires l
Product Strategy Considerations
How does each product support the organizations objectives and strategic direction?
o Refer to growth strategy (Ansoff), maintenance or retrenchment
What products are being offered, at what price points
Questions to Ask in Primary Research for Business Plan
1. How much do you make a year?
2. What is your gender?
3. What is your age?
4. What part of the city to you live in
5. How do you commute?
6. Marital status
7. Willingness to help out i
Understanding Markets and Customers
What is a Market?
Market: All the potential buyers for a particular product or service.
Consumer Market: People who are buying for themselves or for their families.
Business Market: People are buying for their compani
The Situational Analysis
What you need to know
What is a situational analysis?
What tools exist to conduct a situation analysis?
Conduct a SWOT for a given situation
Environmental Scanning and Analysis
Involves the analysis of :
The Marketing Plan
What you need to know
The marketing plan process
The difference between a marketing plan and a business plan
The marketing plan tools
The Marketing Plan Process
Research and Analyze the Current Situation
The marketer performs both:
Segmentation Variables in Consumer Markets vs. Business Markets
Behavioural and Attitudinal
In many ways, the best way to segment Help marketers analyze the specific value that a
particular group expects from the offering. Include variabl
Forecast Sales using ATAR
Awareness Trial Availability Repeat
x % aware of the new product
x % who would try product if they can get it
intent to purchase from concept / primary research
x % to whom product is available
Stop here for prod