Marketing 101 - Finding and Positioning within a Target Market

Market segmentation

These product/services are supported by appropriate promotional campaigns, customer service, pricing, place (distribution strategies)

3 stages of market segmentation:

Segmentation Variables

The four main variables used for segmentation are; demographics, geographic, psychographic and behaviouristic variables.

Segmenting business markets often occurs, in the aim to satisfy the needs of businesses for products, this can be problematic as there are many variables to consider and some are hard to categorise. Some variables for segmenting business markets are; personal characteristic of buyers (life style of buyers, personality, demographics), Operating variables (technology and how the products ae used) situational factors (urgency of purchase and size of order) Organisational demographics (age of company, location and industry) Purchasing approach (Centralised/decentralised? buying policies, existing relationships, buying criteria).

Differential – there must be a real differences in the needs of consumers for the product/service

Substantial – large enough to be profitable to justify developing and maintaining a specific marketing mix

Dissimilar segments – in terms of wants, needs and purchasing behaviour should not be grouped together in the same segment

Accessible – easy to reach with the developed marketing mix

Measurable – easy to identify and measure

Stable – segments must be stable for organisations to make long-term strategic decisions

Undifferentiated strategy defines an entire market for a particular product as its target market. Organisation designs a single marketing mix, directs the marketing mix at the entire market and assumes all customers have similar wants and needs

Concentrated strategy occurs when an organisation directs its marketing efforts towards a single market segment, it creates and maintains one marketing mix and allow the organisation to specialise and to focus on the wants and needs of one distinct customer group.

Differentiated strategy is when an organisation directs it marketing efforts towards two or more market segments, it develops a marketing mix for each segment and can often be a natural progression from the ‘concentrated strategy’

Market segmentation is fundamental to the marketing strategy, segmentation variables are used to divide the total market into segments. These should relate to customers’ wants and needs, once the market segments have been clarified, an appropriate strategy must be employed.

Having decided which segments to target and how to target them, the marketer must focus on positioning. How is it currently positioned, is it different from desired positioning and what is the desired position. Successful positioning needs to be clear credible and consistent

‘’positioning is not what is done to the product, it is what is created in the minds of the target customer’’ it is ‘’the process of creating an image for a product in the minds of target customers’’

To successfully position your product/brand you need to be;
Clear – easy to understand,
Consistent – coherently communicate message overtime across platforms
Competitiveness – clearly differentiation and knowledge of competitors
Credible - organisation/products/brands must deliver up to expectation
Limited positioning discrepancies – Organisation’s desired positioning must match the positioning in the mind of the target segment

‘’Is the systematic design, collection, interpretation and reporting of information to help marketers solve particular problems or take advantage of marketing opportunities’’ (Dibb and Simkin 2009:203)

Can generate a greater understanding of consumers. Can highlights insight into market opportunities. Reveal strengths, weaknesses and threats related to an organisation or product. Ascertain the potential success of new products. Build an understanding of the current positioning. Determine the feasibility of a particular marketing strategy.

In-depth market research can generate deeper understanding of how consumers perceive brands/organisations used in conjunction with ‘perceptual mapping’. Perceptual mapping is a tool adopted by marketers, to visually depict consumers’ perceptions. Prioritise organisations/brands/products and their perceived attributes. Can highlight strengths and weaknesses perceived by consumers

1. Define the segments in a particular market

2. Decide which segments to target

3. Understand what the target consumers expect and believe to be the most important considerations when deciding on the purchase

4. Develop a product catering specifically for these needs and expectations

5. Evaluate the positioning and images, as perceived by the target customers, of competing products in the selected market segment

6. Select an image that sets the products apart from the competing products thus ensuring that the chosen image matches the aspirations of the target customers. The selected positioning and imagery must be credible

7. Inform target consumers about the product. This forms part of the overall marketing mix

‘’ a plausible, memorable image-enhancing written summation of a product’s or brand’s desired stature’’
Clear, short, relevant to the target markets perceptions, intention to develop a distinctive image, platform for its effective communication

segmentation, targeting and positioning are fundamental to the marketing strategy.

You have to think how it is currently positioned, is it different from the desired positioning. What is desired position of the product/brand? Successful positioning needs to be clear, credible and consistent. Remember positioning can be conceptualised as; core message, imagery, perceptions, and associations, mapped.