...Segmentation, Targeting and Positioning LEARNING OBJECTIVES After reading, studying and analyzing this chapter, students should be able to understand: 2.1 The interrelationship among market segmentation, targeting, and positioning, and how to select the best target markets. 2.2 The bases used to segment consumers, including demographics, psychographics, product benefits sought and product usage-related factors. 2.3 Behavioral targeting and its key role in today’s marketing. 2.4 How to position, differentiate and reposition products. CHAPTER SUMMARY Learning Objective 2.1: To understand the interrelationship among market segmentation, targeting and positioning and how to select the best target markets. Segmentation is defined as the process of dividing a potential market into distinct subsets of consumers with a common need or characteristic and selecting one or more segments to target with a specially designed marketing mix. Besides aiding in the development of new products, segmentation studies assist in the redesign and repositioning of existing products, in the creation of promotional appeals, and the selection of advertising media. In order to be a viable target market, a segment must be identifiable (by some criteria such as demographics, lifestyles, or others), sizeable (i.e., large enough to be profitable), stable or growing, accessible (i.e., can be reached economically), and congruent with the marketer’s objectives and resources...
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...egmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low...
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...Cyworld: User Segmentation and Targeting TMBA BBUS 506 A Michael Cavelero, Joel Engstrom, Nesreen Zadah, David Tobey 4/19/2010 Introduction Smoke signals, telegraphs and telephones: communication in the modern world evolves quickly. The 21st century has been no exception. The rise of the internet heralded the growth of so called “online social networks” or simply “social networks” – websites where individual users carved out their own niche. Many of these networks have become household names to Americans: MySpace, Facebook, Linkedin and more. For many Koreans between the ages of ten and thirty, social networking has meant one thing: Cyworld. Cyworld, a small social networking company, was founded in 1999 by a group of MBA students in South Korea. The network was revolutionary, pioneering user experiences, such as community gifting and public threads, that other networks would adapt years later. Cyworld underwent rapid growth, and in 2003, was acquired by SK Telecom, a billion dollar Korean mobile communications enterprise. Cyworld employed a relatively unique revenue model of selling virtual items (“microtransactions”) to over twenty million users. However, by 2006, the social networking market was changing rapidly. Surveys and forecasts reflected declining activity and loyalty among current users. Additionally, an increasing percentage of users simply took advantage of the free services that were offered. Hyung-Chul Joo, as newly appointed CEO of SK Comms (the online...
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...A Cross-National and Cross-Cultural Approach to Global Market Segmentation: An Application Using Consumers’ Perceived Service Quality James Agarwal, Naresh K. Malhotra, and Ruth N. Bolton ABSTRACT The spread of global culture is being facilitated by the proliferation of transnational corporations, the rise of global capitalism, widespread aspiration for material possessions, and the homogenization of global consumption. The extent of convergence of cultural values across nations has been debated by international marketing researchers. However, from a practical standpoint, transnational firms require a cross-national, cross-cultural approach to market segmentation that can be used to guide the development of global marketing strategies. In this study, the authors investigate the application of cross-national versus cross-cultural approaches to market segmentation through a rigorous empirical investigation in the context of banking services. Although services constitute the fastest growing sector of the world economy, few studies have examined global market segmentation strategies for them. The authors develop theory-based crossnational hypotheses and test them by estimating a structural model of consumers’ perceived service quality using survey data from two countries: the United States and India. They test cross-cultural hypotheses by estimating the same model on culture-based clusters. They demonstrate that there are distinctive differences between cross-national and crosscultural...
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...Abstract The robotic lawn mower, which is like the Roomba robotic vacuum, where it can mow the lawn by itself can attract two main target markets that will be covered in this paper. One target market is the elderly people, because simple task, like mowing the lawn can get harder for them. The second target market would be people that are always on the go, because they are always busy and may not have the time to cut their grass. The product positioning will be high be cause its more for people that have a higher income because they will most likely have nicer yards then people who have lower income. Keywords: Robotic Lawn Mower, Positioning, Segmentation, and Target Market Technology is always advancing to try and make things better or easier; the first lawn mower in1868 that was just a “reel type spiral-bladed cutter”, it came from a long way from now, a self-propelled robotic lawn mower (Haster). The robotic lawn mower is similar to the concept of Roomba robotic vacuum cleaner; it mows the lawn by itself and is able to get around obstacles. The robotic lawn mower is controlled by what it hits and has sensors that can make sure it is only cutting grass and prevent it from going out too far. The robotic lawn mower is great for many people because they can maintain their lawn without having to deal with the hot weather or the hard work that usually comes along with cutting the grass, which are the two main reason people do not like mowing their lawn. People who want a...
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...Segmentation, Targeting and Positioning strategy Group Assignment Group-3 Piyush Kamal-1121018 Puneet Kumar Singh-1121041 R. Sushmitharekha-1121021 Priya-1121020 Vishakha Joshi-1121037 Samrita Mallick-1121025 Table of Contents • Introduction………………………………………………………2 • Market Segmentation of McDonalds………………..3 • Target Market of McDonalds…………………………...5 • Positioning of McDonalds Products………………….6 • Conclusion………………………………………………………..7 1 Introduction • Started by 2 brothers-Richard & Maurice McDonalds. Sell only Hamburgers. • Ray Kroc expressed interest in the business. • McDonalds operates on franchising model. • In 1965, it listed its shares on NYSE. • It has opened 34000 restaurants in 122 countries of the world. • It has a very large and diverse product line. McDonalds in India McDonalds entered India in 1996- JV between McD Corp & 2 Indian Businessman. Most of the restaurants serve only vegetarian food items. Most of the restaurants are located in malls, multiplexes, highways, metro stations etc. Located in Delhi, Jaipur, Mumbai, Gujrat, MP, UP, AP etc. 2 Market Segmentation of McDonalds Market segmentation is defined as dividing a single market into smaller segments. The basic reason for dividing the market into small segments is to make it simple to address the needs of smaller groups of customers and try to manufacture different products according to their consuming habits. Particularly it is done according to the people who have similar characteristics...
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...CHAPTER 8 Market Segmentation, Targeting, and Positioning CHAPTER OVERVIEW Chapter 8 shows different approaches that companies can take to a market in order to best serve customer and company needs. It begins with a brief overview of three marketing approaches that companies can take: mass marketing, product-variety marketing, and target marketing. A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of...
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... Think of a specific company's product. What segmentation base/s does the company use to segment its market? And what is the targeting strategy that the company uses to target its market? Justify your answer. McDonald’s McFalafel The company I am dealing with here is the international well known fast food brand McDonald’s which has global presence in the four corners of the world. The specific product is called McFalafel. The following is my analysis for the segmentation base and targeting strategy of this product as used by McDonald's. Introduction: Falafel (or Tamiaa) is a fried ball or patty made from spiced fava beans and/or chickpeas. It is a popular form of fast food in the Middle East in general and in Egypt in particular. Falafel is usually served in a pita-like bread called Arabic bread, either inside the bread, which acts as a pocket, or wrapped in a flat bread. In many countries falafel is a popular street food or fast food. The falafel balls, whole or crushed, may be topped with salads, pickled vegetables and hot sauce, and drizzled with tahini-based sauces. Falafel balls may also be eaten alone as a snack. During Ramadan, they are sometimes eaten as part of an iftar, the meal which breaks the daily fast after sunset. Falafel has been part of the diet of Egyptians and the people of the Middle East for centuries. Segmentation: McDonald’s depended on the geographic segmentation of the Middle East Region, particulary Egypt. In addition...
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...Using a product or service of your choice; illustrate the process of STP. Mass marketing – Examples, ware rare? Segmentation- (in few sentences) > Segmentation is needed to find own segment, niche, and opportunity > Segmentation is needed to locate the best target group. > Formulated best marketing decision Targeting- (in few sentences) 3 main approach (HF5415 B8) Concentrated Differentiated Undifferentiated (Mass Marketing) Positioning- (in few sentences) Is established brand name in consumer mind Helps build the brand image Creates cogent reason why target market should buy a product. Product Choice, specification and reason why? (Product is: SPORT CAR) Not for every one Need for STP ( not mass marketing product) High importance for brand building SEGMANTATION OF THE MARKET FOR SPORT CAR Geographical Segmentation • Helps located area with the wealthiest consumers that may afford sport car. • Helps located area with the smallest competitors influence. • Helps estimate transportation cost. Demographics Segmentation - helps build three – dimensional picture of consumer. • Sex- more appropriate for target consumer is man then a woman. • Age- mature man between 26-37 years old. May be also teenagers (boys) from wealthy families although it is prapobly small market. • Race- shouldn’t be a contradiction. However may be difficult to convince Asian consumers to e.g. European brand. • Income- High income...
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...TUI University Paul A. Krasulski Module 1 SLP: Segmentation, Targeting and Positioning SLP Branded Product: Apple iPhone 4S MKT 501: Strategic Marketing Dr. Francisca Nkadi July 23, 2012 Abstract Purpose: the purpose of this paper is to identify a branded product or service to be examined through the session; examining elements of consumer behavior as they relate to market segmentation, targeting, and positioning for it. This paper, and subsequent papers, will lead to a SWOT marketing analysis of the chosen branded product. Methodology/approach: the branded product for this paper will be Apple’s iPhone4S. Data to be covered in this first paper will include the following: Product/Brand Analyzed Corporate Background Market/Industry Analysis and Competition Market Segmentation and Target Marketing Relevant External Factors Module 1 SWOT Analysis Findings: Apple is a leader in sales and production in US Markets; with products that appeal across target markets. iPhone 4S sales have eclipsed internal Apple brands, as well as other smartphone companies in the U.S. market. Recent sales dominance, however, has not established an industry lead. Samsung, in partnership with Google’s Android Operating system, owns the global marketplace with something like 21% of total market share. Apple faces both technological and political challenges in the largest smartphone market, China, as it is unable to establish a partnership with the largest carriers there due to non-4G/LTE...
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...Marketing segmentation, targeting strategy and positioning of Greggs PLC * Table of Contents * Introduction 1 Segmentation analysis 1 Benefits Sought - Healthy food 1 Lifestyle 1 Demographic and Geodemographic 1 Target marketing strategy analysis 2 Price 2 Promotion 2 Positioning Analysis 2 Competitiveness 2 Clarity 3 * Conclusion 3 * References 4 * Appendices 5 Introduction : In these days the business environment is in high competition, due to that it is essentially important for a company to have knowledge and recognizing their marketplace (Key Note, Oct. 2012). This report to analyze the marketing segmentation, targeting strategy and positioning of Greggs PLC in the UK sandwich shop market. 1 Segmentation analysis: Marketing segmentation is an important way to know and understand the needs and attributes of the customers and fulfill it (Jobber, 2010). The author has used Jobber approach by covering one keys from behavioural segmentation (Benefits sought in Healthy food and price), one key from Psychographic segmentation (Lifestyle) and a combine of two from Profile segmentation (Demographic and Geodemographic). 1.1 Benefits Sought - Healthy food : Many people nowadays are more concern about their health. They normally look at the list of content and check how many a food contains of calories, fat and if there a harmful content...
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...A marketing research on the segmentation, targeting and position of different brands in Marriott International Course: Principles of Marketing Faculty responsibility: D. Sleeman Program: PGD2 Name: YAO Feng (Emma) Words Count: 2632 Date: 02.10.2008 Statement of Authorship “I certify that the totality or assigned portion of this assessment is my own work and contains no material which may have been used for the award of any degree or diploma in any institute, college or university. Moreover, to the best of my knowledge and belief, it contains no material previously published or written by another person, except where due appropriate reference is made.” YAO Feng Table of Contents INTRODUCTION 3 Aim & Objectives 3 Limits of research 3 Methodology 3 SEGMENTATION 4 Market Overview 4 Market Segments 4 TARGETING 6 Segment Strategy 7 POSITIONING 8 Product and branding strategy 8 Pricing 14 Promotion 15 Marketing Channels 16 CONCLUSION 16 REFLECTIVE COMMENT 16 REFERENCES 18 APPENDICES 20 INTRODUCTION In the following report I would like to focus on Marriott International, Inc. (NYSE:MAR), a leading lodging company with over 3,100 lodging properties in the United States and 66 other countries and territories (Marriott International, Inc. Corporate Headquarters, 2008). My key task is to critically analyze the segmentation, targeting and positioning strategies of the company with the following brands:...
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...SEGMENTATION – TARGETING – POSITIONING Fragmentation of mass markets segments Consumers: variety of needs & preferences Marketers: offer variety of choices via multitude of marketing offerings Marketing segmentation: Needs Action Linking market needs to an org’s marketing program Market needs Segmentation/Targeting MM A market segment: Group of consumers with homogenous profile & common needs will similarly respond to a marketing program Segmentation – targeting – positioning 1 Using market-product grids: see how Reebok use different Reebok shoes to reach segments of customers with different needs Single product multiple market segments e.g. TIME magazine multiple geographical mkts multiple products multiple segments firm offers variations of the basic product to high-end and low-end users e.g. GAP with Old Navy, Banana Republic segments of one mass customization built to order Segmentation – targeting – positioning 2 How to segment and target markets: 1. Group potential buyers into segments 2. Group products into categories 3. Develop a Market-Product Grid and estimate size of the market 4. Select target markets 5. Take marketing actions to reach target markets Segmentation – targeting – positioning 3 Criteria used in defining segments: 1. profitability 2. similarity of needs of potential buyers within a segment 3. differences of needs and buyers across segments 4. potential of a marketing action to reach a segment 5. simplicity...
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...Terms of STP include : market strategy; target markets; positioning; market segmentation and target markets; market segmentation and demographics Segmentation Segmentation : Identifying al segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be: Measurable Accessible (can you reach them) Profitable Distinct from one another The objective of segmentation is to find attractive markets. Strategies include Break market into components Regroup into market segments Select which segment to target Positioning. Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*. It is important to understand the levels of competition because positioning applies at all levels of competition. For example: Product Level (e.g., Pepsi vs. Coke) Category Level (e.g., Cola vs. Root beer) Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company) Industry Level (e.g., Beverage Industry vs. Snack food Industry) Targeting. What is target?. This is the real goal/objective in market that marketer...
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...Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 1 Consumer Behavior: Meeting Changes and Challenges 1) The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs is known as ________. A) the production orientation B) consumer behavior C) narrowcasting D) positioning E) the marketing mix Answer: B Diff: 1 Page Ref: 5 Skill: Concept Objective: 1.1: Understand what consumer behavior is and the different types of consumers 2) Which of the following is considered an example of consumer behavior? A) Janice prefers to buy name-brand pain relievers like Tylenol and Advil, rather than the store brand. B) Javier generally gets gas on Monday mornings on his way to work. C) Jessica prefers to buy her produce from the farmer's market instead of the grocery store. D) Jeremy generally recycles his old newspapers and cardboard boxes. E) All of the above are examples of consumer behavior. Answer: E Diff: 2 Page Ref: 5 Skill: Application Objective: 1.1: Understand what consumer behavior is and the different types of consumers 3) When Bill orders five movie tickets online for himself and his friends for a Friday night showing of the latest action thriller, he is acting as a(n) A) organizational consumer B) team consumer C) non-profit consumer D) market consumer E) personal consumer Answer: E Diff: 2 Page Ref: 5 Skill: Application Objective: 1...
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