Steps in target marketing process

1. Segmentation 2. Targeting 3. Positioning

process of dividing a larger market into smaller pieces based on meaningful, shared characteristics. – Useful in both consumer and B2B contexts – Many different dimensions, or segmentation variables, that marketers can utilize

Segmenting Consumer Markets

Demographic, Psychographics, Behavior

Demographic Categories

age, gender, family life cycle, income and social class, ethnicity, place of residence (geography)

combines demographics with geography

geographically customized online ads

Segmenting by behavior

• Categorizes consumers based upon how they act toward, feel about, or use a product – User status – 80/20 rule – Usage occasions – Universal vs. Regular Personal vs. Rare Personal

Segmenting B2B Markets

Segmentation also useful for B2B firms! – understand needs and characteristics of potential customers • Based on – Organizational demographics – NAICS or SIC – Technologies used – User/Non-user

Segmentation, Not sterotyping

identify groups of customers with similar needs -allows marketing to be more efficient and more effective

marketers evaluate each potential segment and decide upon which groups of customers they will invest marketing resources.

Phase 1: Evaluation of Market Segments

– members with similar wants and needs that are different from those in other segments. – needs the marketer can address. – be measureable in size and purchasing power. – be large enough to be profitable. – be reachable by marketing communications

Phase 2: Develop Segment Profiles

marketers should develop profiles or descriptions of the typical customers within a segment (i.e., buyer’s persona)

Phase 3: Choosing a Targeting Strategy

Undifferentiated, concentrated, differentiated, customized marketing

process by which marketers develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.

distinctive image that captures a brand’s character and benefits

Brand Anthropomorphism

assigning human characteristics and qualities to a brand

establishes a new position in response to market changes -commonly used to change the brand image -repositioning can breathe life into "retro" brands

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Question	Answer
Steps in target marketing process	1. Segmentation 2. Targeting 3. Positioning
Step 1: Segmentation	process of dividing a larger market into smaller pieces based on meaningful, shared characteristics. – Useful in both consumer and B2B contexts – Many different dimensions, or segmentation variables, that marketers can utilize
Segmenting Consumer Markets	Demographic, Psychographics, Behavior
Demographic Categories	age, gender, family life cycle, income and social class, ethnicity, place of residence (geography)
Geodemography	combines demographics with geography
Geotargeting	geographically customized online ads
Segmenting by behavior	• Categorizes consumers based upon how they act toward, feel about, or use a product – User status – 80/20 rule – Usage occasions – Universal vs. Regular Personal vs. Rare Personal
Segmenting B2B Markets	Segmentation also useful for B2B firms! – understand needs and characteristics of potential customers • Based on – Organizational demographics – NAICS or SIC – Technologies used – User/Non-user
Segmentation, Not sterotyping	identify groups of customers with similar needs -allows marketing to be more efficient and more effective
Step 2: Targeting	marketers evaluate each potential segment and decide upon which groups of customers they will invest marketing resources.
Phase 1: Evaluation of Market Segments	– members with similar wants and needs that are different from those in other segments. – needs the marketer can address. – be measureable in size and purchasing power. – be large enough to be profitable. – be reachable by marketing communications
Phase 2: Develop Segment Profiles	marketers should develop profiles or descriptions of the typical customers within a segment (i.e., buyer’s persona)
Phase 3: Choosing a Targeting Strategy	Undifferentiated, concentrated, differentiated, customized marketing
Step 3: Positioning	process by which marketers develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.
Brand Personality	distinctive image that captures a brand’s character and benefits
Brand Anthropomorphism	assigning human characteristics and qualities to a brand
Repositioning	establishes a new position in response to market changes -commonly used to change the brand image -repositioning can breathe life into "retro" brands

Created by: user-1879979

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