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Unit7.MarketSegmentation,Targeting,andPositioningMarket
Segmentation
Marketsconsistofbuyers,andbuyersdifferinoneormoreways.Theymaydifferintheirwants,resources,locations,buyingattitudes,andbuyingpractices.Throughmarket
segmentation,companiesdividelarge,heterogeneousmarketsintosmallersegmentsthatcanbereachedmoreefficientlyandeffectivelywithproductsandservicesthatmatchtheiruniqueneeds.Inthisunit,wediscussthreeimportantsegmentationtopics:
segmentingconsumermarkets,segmentingbusinessmarkets,andrequirementsforeffectivesegmentation.3StepsinMarketSegmentation,Targeting,andPositioning(SeeP118)MarketSegmentation1.Identifybasesforsegmentingthemarket2.DevelopsegmentprofilesMarketTargeting3.Developmeasureofsegmentattractiveness4.SelecttargetsegmentsMarketpositioning5.Developpositioningfortargetsegments6.DevelopamarketingmixforeachsegmentSegmentingConsumerMarkets
Thereisnosinglewaytosegmentamarket.Amarketerhastotrydifferentsegmentationvariables,aloneandincombination,tofindthebestwaytoviewthemarketstructure.Themajorelementsthatmightbeusedinsegmentingconsumermarketsare
geographic,demographic,psychographic,andbehavioralvariables.
Geographicsegmentationcallsfordividingthemarketintodifferentgeographicalunitssuchasnations,regions,states,counties,cities,orneighborhoods.Acompanymaydecidetooperateinoneorafewgeographicalareas,ortooperateinallareasbutpayattentiontogeographicaldifferencesinneedsandwants.
Demographicsegmentationdividesthemarketintogroupsbasedonvariablessuchasage,gender,familysize,familylifecycle,income,occupation,education,religion,race,generation,andnationality.Demographicfactorsarethemostpopularbasesforsegmentingcustomergroups.Onereasonisthatconsumerneeds,wants,andusageratesoftenvarycloselywithdemographicvariables.Anotheristhatdemographicvariablesareeasiertomeasurethanmostothertypesofvariables.Evenwhenmarketsegmentsarefirstdefinedusingotherbases,suchasbenefitssoughtorbehavior,theirdemographiccharacteristicsmustbeknowninordertoassessthesizeofthetargetmarketandtoreachitefficiently.6MarketSegmentation
DemographicSegmentation(SeeP118-119)Dividingthemarketintogroupsbasedonvariablessuchas:AgeGenderFamilysizeorlifecycleIncomeOccupationEducationReligionRaceGeneration…….MostPopularBases&EasiesttoMeasure7
Size,purchasingpower,profilesofsegmentscanbemeasured.
Segmentscanbeeffectivelyreachedandserved.
Segmentsarelargeorprofitableenoughtoserve.MeasurableAccessibleSubstantialDifferentialActionable
Segmentsmustresponddifferentlytodifferentmarketingmixelements&programs.
Effectiveprogramscanbedesignedtoattractandservethesegments.MarketSegmentation
RequirementsforEffectiveSegmentationRequirementsforEffectiveSegmentation
(SeeP120)Tobeuseful,marketsegmentsmustbeMeasurable:
Thesize,purchasingpower,andprofilesofthesegmentscanbemeasured.Certainsegmentationvariablesaredifficulttomeasure.Forexample,thereare32.5millionleft-handedpeopleintheUnitedStates—almostequalingtheentirepopulationofCanada.Yetfewproductsaretargetedtowardthisleft-handedsegment.Themajorproblemmaybethatthesegmentishardtoidentifyandmeasure.andisexposedtocertainmedia,itsmemberswillbedifficulttoreach.Accessible:
Themarketsegmentscanbeeffectivelyreachedandserved.Supposeafragrancecompanyfindsthatheavyusersofitsbrandaresinglemenandwomenwhostayoutlateandsocializealot.Unlessthisgrouplivesorshopsatcertainplaces.
Substantial:
Themarketsegmentsarelargeorprofitableenoughtoserve.Asegmentshouldbethelargestpossiblehomogenousgroupworthpursuingwithatailoredmarketingprogram.Itwouldnotpay,forexample,foranautomobilemanufacturertodevelopcarsespeciallyforpeoplewhoseheightislessthanfourfeet.
Differentiable:
Thesegmentsareconceptuallydistinguishableandresponddifferentlytodifferentmarketingmixelementsandprograms.Ifmarriedandunmarriedwomenrespondsimilarlytoasaleonperfume,theydonotconstituteseparatesegments.Actionable:
Effectiveprogramscanbedesignedforattractingandservingthesegments.Forexample,althoughonesmallairlineidentifiedsevenmarketsegments,itsstaffwastoosmalltodevelopseparatemarketingprogramsforeachsegment.11MarketTargeting
EvaluatingMarketSegmentsSegmentSizeandGrowthAnalyzecurrentsales,growthratesandexpectedprofitabilityforvarioussegments.SegmentStructuralAttractivenessConsidereffectsof:competitors,availabilityofsubstituteproductsand,thepowerofbuyers&suppliers.CompanyObjectivesandResourcesCompanyskills&resourcesneededtosucceedinthatsegment(s).LookforCompetitiveAdvantages.SelectingTargetMarketSegments
Afterevaluatingdifferentsegments,thecompanymustnowdecidewhichandhowmanysegmentsitwilltarget.Atargetmarketconsistsofasetofbuyerswhosharecommonneedsorcharacteristicsthatthecompanydecidestoserve.Becausebuyershaveuniqueneedsandwants,asellercouldpotentiallyvieweachbuyerasaseparatetargetmarket.Ideally,then,asellermightdesignaseparatemarketingprogramforeachbuyer.However,althoughsomecompaniesdoattempttoservebuyersindividually,mostfacelargernumbersofsmallerbuyersanddonotfindindividualtargetingworthwhile.Instead,theylookforbroadersegmentsofbuyers.Moregenerally,targetmarketingcanbecarriedoutatseveraldifferentlevels.13Segment1Segment2Segment3Segment1Segment2Segment3CompanyMarketingMixCompanyMarketingMixCompanyMarketingMix1CompanyMarketingMix2CompanyMarketingMix3MarketA.UndifferentiatedMarketingB.DifferentiatedMarketingC.ConcentratedMarketingMarketTargeting
MarketCoverageStrategiesPositioningforCompetitiveAdvantageBeyonddecidingwhichsegmentsofthemarketitwilltarget,thecompanymustdecidewhatpositionsitwantstooccupyinthosesegments.Aproductpositionisthewaytheproductisdefinedbyconsumersonimportantattributes—theplacetheproductoccupiesinconsumers'mindsrelativetocompetingproducts.Positioninginvolvesimplantingthebrand'suniquebenefitsanddifferentiationincustomers'minds.Safeguardispositionedastheanti-bacteriasoapthathasdisinfectioneffectandthuscanhelppreventinfectiousdiseases;Tideispositionedasapowerful,all-purposefamilydetergent.Intheautomobilemarket,theToyotaEcho(andmorerecentversioniscalledYaris)andFordFocusarepositionedoneconomy,MercedesandCadillaconluxury,andPorscheandBMWonperformance.Volvopositionspowerfullyonsafety.Consumersareoverloadedwithinformationaboutproductsandservices.Theycannotreevaluateproductseverytimetheymakeabuyingdecision.Tosimplifythebuyingprocess,consumersorganizeproducts,services,andcompaniesintocategoriesand"position"themintheirminds.Aproduct'spositionisthecomplexsetofperceptions,impressions,andfeelingsthatconsumershavefortheproductcomparedwithcompetingproducts.ChoosingaPositioningStrategySomefirmsfinditeasytochoosetheirpositioningstrategy.Forexample,afirmwellknownforqualityincertainsegmentswillgoforthispositioninanewsegmentifthereareenoughbuyersseekingquality.Butinmanycases,twoormorefirmswillgoafterthesameposition.Then,eachwillhavetofindotherwaystosetitselfapart.Eachfirmmustdifferentiateitsofferbybuildingauniquebundleofbenefitsthatappealtoasubstantialgroupwithinthesegment.Thepositioningtaskconsistsofthreesteps:1.Identifyingasetofpossiblecompetitiveadvantagesuponwhichtobuildaposition;2.choosingtherightcompetitiveadvantages,and3.selectinganoverallpositioningstrategy.Thecompanymusttheneffectivelycommunicateanddeliverthechosenpositiontothemarket.IdentifyingPossibleCompetitiveAdvantagesThekeytowinningandkeepingcustomersistounderstandtheirneedsbetterthancompetitorsdoandtodelivermorevalue.Totheextentthatacompanycanpositionitselfasprovidingsuperiorvalue,itgainscompetitiveadvantage.Butsolidpositionscannotbebuiltonemptypromises.Ifacompanypositionsitsproductasofferingthebestqualityandservice,itmustthendeliverthepromisedqualityandservice.Volvopositioneditscarsas:thesafestcarsmoneycanbuy!Tofindpointsofdifferentiation,marketersmustthinkthroughthecustomer'sentireexperiencewiththecompany'sproductorservice.Analertcompanycanfindwaystodifferentiateitselfateverypointwhereitcomesincontactwithcustomers.
Inwhatspecificwayscanacompanydifferentiateitsofferfromthoseofcompetitors?Acompanyormarketoffercanbedifferentiatedalongthelinesofproduct,services,channels,people,orimage.20ReviewofKeyTermsandConceptsageandlife-cyclesegmentation:
Dividingamarketintodifferentageandlife-cyclegroups年龄和生命周期细分.concentrated(niche)marketing
Amarket-coveragestrategyinwhichafirmgoesafteralargeshareofoneorafewsegmentsorniches.集中化(内基)营销demographicsegmentation
Dividingthemarketintogroupsbasedondemographicvariablessuchasage,gender,familysize,familylifecycle,income,occupation,education,religion,race,generation,andnationality.人口统计(变量)细分21differentiatedmarketing:
Amarket-coveragestrategyinwhichafirmdecidestotargetseveralmarketsegmentsanddesignsseparateoffersforeach.差异化营销gendersegmentation:Dividingamarketintodifferentgroupsbasedongender.性别细分
geographicsegmentation:
Dividingamarketintodifferentgeographicalunitssuchasnations,states,regions,counties,cities,orneighborhoods.地理细分incomesegmentation:
Dividingamarketintodifferentincomegroups.收入细分.22marketpositioning:
Arrangingforaproducttooccupyaclear,distinctive,anddesirableplacerelativetocompetingproductsinthemindsoftargetconsumers.市场定位marketsegmentation:Dividingamarketintodistinctgroupswithdistinctneeds,characteristics,orbehaviorwhomightrequireseparateproductsormarketingmixes.市场细分.psychographicsegmentation:Dividingamarketintodifferentgroupsbasedonsocialclass,lifestyle,orpersonalitycharacteristics.心理细分.23
targetmarketing:
Theprocessofevaluatingeachmarketsegment'sattractivenessandselectingoneormoresegmentstoenter.目标营销.undifferentiatedmarketing:
Amarket-coveragestrategyinwhichafirmdecidestoignoremarketsegmentdifferencesandgoafterthewholemarketwithoneoffer.非差异化市场营销.
DiscussionandReviewQuestions1.Whatismarketsegmentationaccordingtodefinition?2.Whatarethemarketsegmentationvariables?Pleaseprovideexamples.3.Whydemographicsegmentationisthemostcommonlyusedsegmentationapproachbymanyconsumergoodscompanies?4.Tellthedifferencesbetweenundifferentiatedmarketinganddifferentiatedmarketing.5.Howtofindpointsofdifferentiationinthemarketplace?6.Whatismarketpositioning?Andwhypositioning?7.Howtopositionforcompetitiveadvantages?8.Whatisthekeytowinningandkeepingtargetcustomers?SelectedAnswers
toExercisesinUnit7I.Nofixedanswerstothesequestions;Studentsmaymakefreespeechaccordingtothetext.II.
1.heterogeneous;2.profitability;3.niches;4.variability;5.Demographic;6.segmentation;7.variables;8.profiles
III.1.h;2.d;3.e;4.b;5.c;6.f;7.g;8.aIV.1.T;2.F;3.T;4.F;5.T;6.T
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