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年齡和生命周期細(xì)分.concentrated(niche)marketing

Amarket-coveragestrategyinwhichafirmgoesafteralargeshareofoneorafewsegmentsorniches.集中化（內(nèi)基）營(yíng)銷(xiāo)demographicsegmentation

Dividingthemarketintogroupsbasedondemographicvariablessuchasage,gender,familysize,familylifecycle,income,occupation,education,religion,race,generation,andnationality.人口統(tǒng)計(jì)（變量）細(xì)分21differentiatedmarketing:

Amarket-coveragestrategyinwhichafirmdecidestotargetseveralmarketsegmentsanddesignsseparateoffersforeach.差異化營(yíng)銷(xiāo)gendersegmentation:Dividingamarketintodifferentgroupsbasedongender.性別細(xì)分

geographicsegmentation:

Dividingamarketintodifferentgeographicalunitssuchasnations,states,regions,counties,cities,orneighborhoods.地理細(xì)分incomesegmentation:

Dividingamarketintodifferentincomegroups.收入細(xì)分.22marketpositioning:

Arrangingforaproducttooccupyaclear,distinctive,anddesirableplacerelativetocompetingproductsinthemindsoftargetconsumers.市場(chǎng)定位marketsegmentation:Dividingamarketintodistinctgroupswithdistinctneeds,characteristics,orbehaviorwhomightrequireseparateproductsormarketingmixes.市場(chǎng)細(xì)分.psychographicsegmentation:Dividingamarketintodifferentgroupsbasedonsocialclass,lifestyle,orpersonalitycharacteristics.心理細(xì)分.23

targetmarketing:

Theprocessofevaluatingeachmarketsegment'sattractivenessandselectingoneormoresegmentstoenter.目標(biāo)營(yíng)銷(xiāo).undifferentiatedmarketing:

Amarket-coveragestrategyinwhichafirmdecidestoignoremarketsegmentdifferencesandgoafterthewholemarketwithoneoffer.非差異化市場(chǎng)營(yíng)銷(xiāo).

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