Market Segmentation and Positioning (chapter 6)

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Market Segmentation and Positioning (chapter 6) by Mind Map: Market Segmentation and Positioning (chapter 6)

1. The STP process

1.1. Method by which whole markets are are subdivided into different segments to allocate marketing programme activity


1.2.1. Identifying similar groups of customers

1.3. 2 TARGET

1.3.1. Identifying which group to aim for


1.4.1. Creating an appealing concept

1.5. Benefits

1.5.1. Enhancement of competitive positioning

1.5.2. Identification of market growth oportunities

1.5.3. Matching of company resources to targeted markets

2. The Concept of Market Segmentation (because its imposible to give a specificproduct for each person)

2.1. Division of a market into different groups of customers with similar needs

2.1.1. Necessary to grow when core products' promotions do not workor when several competitor sell the sam product

2.2. Purpose

2.2.1. Ensure that elements of marketing mix (price, distribution, products and promotions) meet the needs of diferent customer groups.

2.3. Product Segmentation

2.3.1. Variations of a product to satisfy each segment

3. 1The Process of Market Segmentation

3.1. Approaches

3.1.1. Breakdown method View: customers are similar. Task: find differences Most stablished method

3.1.2. Build Up Method View: customers are different. Task: find similarities customer-oriented

3.1.3. Common Aim Indetify makert segments where diferences exist between segment similarities exist between members

4. Market Segmentation in Consumer Markets

4.1. Segemetation Bases

4.1.1. key customer-related

4.1.2. product-related

4.1.3. situation-related

4.1.4. Include Profile Criteria Who are my market and where are they? uses demographic methods Geographics Behavioural Criteria where,when and how does my market behave? Usage Transaction and Purchase Media Usage Psychological criteria why doesmy market behave that way? Include Contact Data postal address,email

5. Market Segmentation in Bussines Markets

5.1. uses 2 groups of interrelated variables used tosegment Bussines-to-Bussines markets

5.1.1. Organizational Characteristics Useful for those who want to segment concern the buying organizations that make up a business market criteria used to cluster to cluster organizations Firmographic Economic Geocraphic Segmentation base Organizational Size Geographical Location Industry Type (standard industrialclasification codes)

5.1.2. Charactesitics surrounding the decision making process/Customer Characteristics Useful for organizations seeking to stablish and develop customer relationships Concern the charactersitics of buyers within the organizations that makeupa business market Segmentation base Decision Making Unit Choice Criteria Purchase Situation

6. 2 Target Markets

6.1. For market segmentationto be efective all segments should be DAMP

6.1.1. Distinct

6.1.2. Accesible

6.1.3. Measurable

6.1.4. Profitable

6.2. Targeting Approaches

6.2.1. Undifferentiated Approach No differentiation

6.2.2. Differentiated Target Approach several atractive segment to target. A marketing startegy for each segment

6.2.3. Concentrated/Niche Marketing Strategy just a few market segments. Small organizations with limited resoures

6.2.4. Customized Targeting Strategy

7. Segmentation Limitations

7.1. Negative Criticsm

7.1.1. The process aproximates the needs os custromer groups rather than individuals

7.1.2. There is insufficient consideration of howmarket segmentation is linked to competitive advanage (do nost stress diferentiating offering fromcompetitors)

7.1.3. Much of the money spent on segmentationis wasted because not enough is spentand results are not assimilated

7.2. reasons why segmentation plans in B2B markets usually fail

7.2.1. Infrastructure Barriers

7.2.2. Process Issues lack ofexperince, quidance,expertise

7.2.3. Implementation Barriers It is hard to move toa new segmentation model once one is already implemented

8. 3 Positioning

8.1. The meansby which offerings are diferentiated from one another togivecustomers a reason to buy

8.2. Fundamental elements

8.2.1. attributes Functionality Capcity

8.2.2. Howa brand is communicated and how customers perceive it

8.3. Perceptual Mindmapping

8.3.1. Understanding the complexity associated wioth the different atributes of each brand can be made easier by developing a visual representation of each market

8.4. Positioning and repostioning

8.4.1. marketing communications can be used to postion brands (and make a promise) functionally emphasize features and benefits product features Price quality use expresively (symbolically) emphasize ego,social and hedonic satisfactions user benefit heritage

8.4.2. Approachs to Repostioning Change the tangible attributes and then communicate the new position to the same market Change the way a porposition is communicated to the original market change the target market and deliver the same proposition change the proppsition and the target market