Roy Rogers
02.10.2012
Target Marketing Process (STP)
Identify markets with unfulfilled needs
Segmentation, Targeting and Positioning
Albert CARUANA Ph.D.
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
Customer-Oriented Marketing Strategy • Segment market:
– Divide larger market into groups of people with similar demands and responses.
Market
• Generic definition: A market is a group of people with purchasing power who are willing to spend money to satisfy their need • Product Market: consists of a group of people with similar needs who satisfy their needs through the purchase of particular products.
• Target marketing:
– Evaluate segments and select one or more segments to enter.
• Positioning:
– Create clear, distinctive and desirable place relative to competing products in minds of target customers.
Market Segmentation
• Segmentation: the subdividing of a market into homogenous subsets of customers, where any subset can be selected as a market target to be reached with a distinctive marketing mix
– Consumer Segmentation – Industrial Segmentation
Consumer Segmentation Geographic
• • • • State Region Country size Climate
1
02.10.2012
Consumer Segmentation Demographic
Most often used because: • correlate well with sales • easy to identify and measure • used to describe advertising media audiences
Consumer Segmentation Demographic
– Age - Young , middle age, senior – Gender – Type of Household - single, traditional – Family size – Family Life Cycle – Occupation, Education, Income – Nationality, Religion, Race
Geo-Demographic
Digital maps show racial divides in US cities
Detroit Chicago
One dot = 25 people • White people •Black people •Asians •Hispanics
Consumer Segmentation
• Psychographic
– Personality - macho image eg Marlboro – Lifestyle - people often use products to make statements about themselves
• Behavioural
– usage – Usage rate - in packaged
Target Marketing Process (STP)
Identify markets with unfulfilled needs
Segmentation, Targeting and Positioning
Albert CARUANA Ph.D.
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
Customer-Oriented Marketing Strategy • Segment market:
– Divide larger market into groups of people with similar demands and responses.
Market
• Generic definition: A market is a group of people with purchasing power who are willing to spend money to satisfy their need • Product Market: consists of a group of people with similar needs who satisfy their needs through the purchase of particular products.
• Target marketing:
– Evaluate segments and select one or more segments to enter.
• Positioning:
– Create clear, distinctive and desirable place relative to competing products in minds of target customers.
Market Segmentation
• Segmentation: the subdividing of a market into homogenous subsets of customers, where any subset can be selected as a market target to be reached with a distinctive marketing mix
– Consumer Segmentation – Industrial Segmentation
Consumer Segmentation Geographic
• • • • State Region Country size Climate
1
02.10.2012
Consumer Segmentation Demographic
Most often used because: • correlate well with sales • easy to identify and measure • used to describe advertising media audiences
Consumer Segmentation Demographic
– Age - Young , middle age, senior – Gender – Type of Household - single, traditional – Family size – Family Life Cycle – Occupation, Education, Income – Nationality, Religion, Race
Geo-Demographic
Digital maps show racial divides in US cities
Detroit Chicago
One dot = 25 people • White people •Black people •Asians •Hispanics
Consumer Segmentation
• Psychographic
– Personality - macho image eg Marlboro – Lifestyle - people often use products to make statements about themselves
• Behavioural
– usage – Usage rate - in packaged