Consumer Behaviour 1 Week 11: The utility of segmentation, targeting and positioning East, Wright & Vanhuele (2009) Sharp 2012 1 BHO2434 Week 11 Review of market segmentation, targeting and positioning Understanding why marketers segment, target and position their brands in the market Challenging the need for segmentation, targeting and positioning 2 BHO2434 Week 11 Refresh… Using an example, briefly describe in your own words: 1. Segmentation 2. Targeting 3. Positioning 3 BHO2434 Week 11 Identify segmentation bases 1. Market Segmentation 2. Market Targeting 3. Market Positioning Develop profiles of segments Develop positioning for segments Develop marketing mix for segments Measure segment attractiveness Select target segments 4 BHO2434 Week 11 Identify segmentation bases 1. Market Segmentation 2. Market Targeting 3. Market Positioning Develop profiles of segments Develop positioning for segments Develop marketing mix for segments Measure segment attractiveness Select target segments 5 BHO2434 Week 11 “ Few organisations…have either the resources or the inclination to be a significant force within a loosely defined market. The sensible option, therefore is to look more closely at the market and find ways of breaking it down into manageable parts, and then to concentrate effort on serving the needs of one or two groups really well, rather than trying to be all things to all people” (p. 180, Brassington & Pettitt, 2003) 6 BHO2434 Week 11
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Consumer Behaviour
1
Week 11: The utility of segmentation, targeting and positioning
East, Wright & Vanhuele (2009)
Sharp 2012
1 BHO2434 Week 11
Review of market segmentation, targeting and positioning
Understanding why marketers segment, target and position their brands in the market
Challenging the need for segmentation, targeting and positioning
2 BHO2434 Week 11
Refresh…
Using an example, briefly describe in your own words:
1. Segmentation
2. Targeting
3. Positioning
3 BHO2434 Week 11
Identify
segmentation
bases
1. Market
Segmentation
2. Market
Targeting
3. Market
Positioning
Develop
profiles of
segments
Develop
positioning for
segments
Develop
marketing mix
for segments
Measure
segment
attractiveness
Select
target
segments
4 BHO2434 Week 11
Identify
segmentation
bases
1. Market
Segmentation
2. Market
Targeting
3. Market
Positioning
Develop
profiles of
segments
Develop
positioning for
segments
Develop
marketing mix
for segments
Measure
segment
attractiveness
Select
target
segments
5 BHO2434 Week 11
“ Few organisations…have either the
resources or the inclination to be a significant force within a loosely defined market. The sensible option, therefore is to look more closely at the market and find ways of breaking it down into manageable parts, and then to concentrate effort on serving the needs of one or two groups really well, rather than trying to be all things to all people”
(p. 180, Brassington & Pettitt, 2003)
6 BHO2434 Week 11
Consumer Behaviour
2
Mass Marketing ◦ Offering the same product and marketing mix to all
consumers
◦ Mass Marketing Issues
Appropriate if all consumers respond to a similar marketing mix
Benefits are that it is a low cost marketing strategy
one advertising and promotional strategy targeted to a single market for a generic product.
7 BHO2434 Week 11
Market Segmentation Issues ◦ Allows producers to avoid head on confrontation
By differentiating by price, styling, packaging, promotional appeal, usage, and distribution.
◦ Increased costs of segmentation
i.e. Shorter production runs, different promotional campaigns, consumer research
8 BHO2434 Week 11
Enables the organisation to achieve a better understanding of itself and its environment
To guide the redesign and repositioning of existing products ◦ Products/services fit more closely what customers
want ◦ To find new market segments.
9 BHO2434 Week 11
Customers may feel more responsive and loyal to organisations that speak directly to them ◦ and tailor their products accordingly.
2. Attributes that are prototypical are prototypical for every brand
(e.g. Romaniuk & Sharp, 2000; Rosch, 1978)
3. Attitudes are fickle on an individual level but remains stable at an aggregate level
(e.g. D’allmoRiley et al, 1997)
4. Consumers have repertoires of brands (e.g. Sharp, Wright & Goodhardt, 2002)
5. There is no brand segmentation (e.g. Kennedy & Ehrenberg, 2001)
39 BHO2434 Week 11
Barwise, T. P. and A. S. C. Ehrenberg (1985). "Consumer Beliefs and Brand Usage." Journal of the Market Research Society 27(No. 2, April): 81-93.
Brassington, F. & Pettitt, S. (2003). Princples of Marketing (3rd Ed).
Prentice Hall: London Dall'Olmo Riley, F., A. S. C. Ehrenberg, et al. (1997). "The Variability of
Attitudinal Repeat-Rates." International Journal of Research in Marketing 14(No. 5): 437-450.
Ehrenberg, A.S.C. (2004). What brand loyalty can tell us. Admap,
October, 36-38. Kennedy, R. & Ehrenberg, A.S.C. (2001). There is no brand
segmentation. Marketing Research, 13(1). Ries, A. and J. Trout (2001). Positioning: The Battle for Your Mind. NY,
McGraw Hill.
40 BHO2434 Week 11
Romaniuk, J. and B. Sharp (2000). "Using Known Patterns in Image Data to Determine Brand Positioning." International Journal of Market Research 42(Issue 2, Spring/Summer): 219-230.
Rosch, E. (1978). Principles of Categorization. Cognition and Categorization. E.
Rosch and B. B. Lloyd. Hillsdale, N.J., L. Erlbaum Associates: 27-48. Sharp, B., M. Wright and G.J. Goodhardt (2002). "Purchase loyalty is polarised
into either repertoire or subscription patterns." Australasian Marketing Journal 10(3): 7.
Wright, M & Esslemont, D. (1994). The logical limitations of target marketing. Marketing Bulletin, 5, 13-20.
Wright, M. (1996). The dubious assumptions of segmentation and targeting,
Management Decision, 34(1), 18-24.
Winchester, M.K.& Sharp, B. (2002). Arguments against brand positioning. Professional Marketing Research Society Conference/Association Professionelle de Recherche en Marketing, Nottawasaga, Canada.