Market Segmentation, Targeting, and Positioning for Competitive AdvantageChapter 7Part 1 Market Segmentation

Customer-Driven Marketing Strategy The 4 Major StepsMarket SegmentationMarketing TargetDifferentiation and Positioning Positioning for Competitive Advantage

*DefinitionMarket Segmentation: Dividing a market into smaller markets with distinct needs, characteristics, or behaviour who might require separate products or marketing mixes.

Market Segmentation Marketing mixes are customised Geographically

Lifestyle, social class, andpersonality-based

Demographics are based on variables such as age, gender, occupation, income etc.

Based on variables such as occasions, benefit sought, customer status, usage rate *

Step 1. Market SegmentationPsychographic Segmentation VariablesSocial class Lifestyle Personalityipod silhouette campaign

Step 1. Market SegmentationBehavioural SegmentationDividing the market into groups based on variables such as:OccasionsBenefits soughtUser statusUsage rateLoyalty status

Using the four segmentation variables shown in Table 7.1, p210 discuss which variables would be most important for segmenting the product given to you. Explain your choices to the class. Activity 2 Applying the concepts

Activity 3 Marketing Plan FocusHow is your brand currently performing?Find and analyse market reports for your brand categoryUse GMID Using Figures 3.1 & 3.2 (pages 61 & 63) discuss the forces that may present the biggest:Strengths & Weaknesses (Micro)Opportunities & Threats (Macro)Use the Micro/Macro worksheet to record your decisions Use table 7.1 (p167) to identify which variables have been used for segmenting for your brand /product Use the Segmentation worksheet to record your decisions

HomeworkRead pages 221 227

****** Drivers for a new proposed sports car. This segment could be measured in general and the number could be approximated from secondary sources (such as from car clubs, automobile companies, interests--such as auto shows, or prior ownership of vehicles). Exact measurement would be difficult. The accessibility of these consumers would be difficult except through their service providers or interest areas. However, promotions (such as magazine, outdoor advertisements, or auto shows) can be constructed. The number is thought be substantial among youth and the affluent, however, this segment would have to be tied to desires for automobiles in general to be useful. An interesting side question would be whether these consumers are gender or geographically concentrated. What role would life style play?