Lecture 4

Segmentation: identifying and describing market segments

Targeting: evaluating the segements and deciding which to pursue

Positioning: design product/ service tailored to the segment’s needs and dvelop marketing mix that will create competitive advantage

process of dividing broad group of buyers/ potential buyers into smaller groups which exhibit similar needs

Wilson and Gilligan (2005)

• economic rationale (focus use of resources where they are effective)

• better understanding of costumers for better match of product to needs

• match market to skills

• identify unmet needs, areas of growth and unsaturated market

Geographic, demographic, geo-demographic, psychographic, behavioural (Arnold, 1992)

Undifferentiated marketing (target entire market)

concentrated marketing (focus on one segment)

differentiated marketing (focus on soem distinct segments)

customised marketing (no segments, instead personalised marketing)

Jobber and Ellis-Chadwick (2013)

business strengths on one side (market share, resources, production)

market attractiveness (customer needs, competition, environment, growth?)

1. audience and context (for whom?)

2. value proposition (what do we offer?)

3. action components (why/ how are we able to?)

Clarity

Consistency

Credibility

Competitiveness

shows perception that consumers have of the different competing brands/offerings

using two dimensions like functional/emotional and social/personal