MGT2306-MARKETING-MANAGEMENT LESSON 6

MGT 2306

MARKETING MANAGEMENT

Lesson 6

LESSON 6 OBJECTIVES

• Define Segmentation, Targeting and

Positioning

• Describe the bases of segmentation,

differentiate targeting strategies and distinguish

different types of positioning strategies

• Be able to manipulate the marketing mix

according to the segmentation requirements

MARKET SEGMENTATION

Market segmentation is a marketing strategy that

involves dividing a broad target market into subsets

of consumers, businesses, or countries who have

common needs and priorities, and then designing

and implementing strategies to target them.

FOUR BASES OF SEGMENTING

CONSUMER MARKETS

* ACORN: A Classification of Residential Neighborhoods

CHARACTERISTICS OF

EFFECTIVE SEGMENTATION

Requirementsfor

effectivesegmentation

Measurable

Substantial

Actionable Accessible

Measurable

members can be identified

the size and purchasing power of the

segment can be measured

Accessible

they can be reached through media and

distribution channels

they can be effectively served

Substantial

they are large enough to be profitable

Actionable

a cost-effective marketing program can

be designed to attract and serve the

segment

DEFINITION OF TARGETING

“The selection of a segment and developing

marketing strategies that focus on meeting the needs

of that particular segment of market”

TARGET MARKETING STRATEGIES

There are 3 approaches to

target marketing strategies:-

a) Mass Marketing

b) Differentiated Marketing

c) Concentrated/Niche Marketing

d) Micro marketing

MASS MARKETING

• Mass Marketing is a coverage strategy where a

company markets or attempts to sell through

persuasion a product/event to a large audience.

• So in effect the message will reach the largest

number of people possible and traditionally it

has focused on radio, television and

newspapers as a medium.

DIFFERENTIATED MARKETING

• Is where a company/product attempts to appeal to

two or more clearly defined market segments with a

specific product and unique marketing strategy

tailored to each separate segment.

CONCENTRATED/ NICHE

MARKETING

• Is a market segmentation and coverage strategy

whereby accompany/ product is developed and

marketed for a very well-defined, specific segment

of the consumer population.

• The marketing plan will be a highly specialized one

catering to the needs of that specific consumer

segment.

WHAT IS POSITIONING?

• A marketing strategy that aims to make a brand

occupy a distinct position, relative to competing

brands, in the mind of the customer.

• Companies apply this strategy either by

emphasizing the distinguishing features of their

products or a suitable image through advertising.

WHAT IS BRANDING?

• The process involved in creating a unique name

and image for a product in the consumers' mind,

mainly through advertising campaigns with a

consistent theme.

• Branding aims to establish a significant and

differentiated presence in the market that attracts

and retains loyal customers.

LET’S WATCH A VIDEO..

HIDDEN MEANINGS IN BRANDS

Against a

competitor

Usage

occasion

Away from

competitors

Product

attributes

Product

class

Benefits

offered

Users

High-Tech

Innovative

Creative

Cheapest

Fastest

When you

most need

Beginners

Professionals

The better

choice

Works better

Just do it

Open

Happiness

Grade AA

4-stars rating

Positioning

Strategies

AREAS OF COMPETITIVE

ADVANTAGE

Product Service

Personnel Image

Areas for competitive

differentiation

Examples of Positioning Adverts

The Duracell Bunny

CommercialFedex - Zhang