1. Analyze consumer product relationship
2. Investigate segmentation bases
3. Develop product positioning
4. Select segmentation strategy
5. Design marketing mix strategy
The first task in segmenting the market is Analyze consumer product relationships—this entail the analysis of the affect and cognition, behaviour, and environments involved in the purchase/consumption process.
3 general approaches to this task—
1. Marketing managers may brainstorm the product concept and consider what types of consumers are likely to purchase and use the product and how they differ from those less likely to buy. 2. Focus groups and other types of primary research can be used for identifying differences in attributes, benefits, and values of various potential markets 3. Secondary research may further investigate differences in potential target markets, determine the relative sizes of those markets, and develop a better understanding of consumers of this or similar products Investigate segmentation bases. There are no simple way to determine the best bases for segmenting markets.
Benefit segmentation. The benefits people seek in consuming a given product are the basic reasons for the existence of true market segments.
Psychographic segmentation. Differences on consumer lifestyles. Activities(work, hobbies, vacations), interests (family, job community), opinions9social issues, policitcs, business)
Person/situation. Market can be divided on the basis of usage situation. Example: clothes and footwear—market are divided on the basis of sex, size, usage situation or social events
Geodemographic segmentation. Identifies specific households in market focusing on local neighbourhood geography (such as zip codes) to create classifications of actual addressable, mappable neighbourhood where consumers live and shop. Develop product positioning. Positioning the product relative to competing products in the minds of consumers.
Objective: to form a particular brand image in consumers’ minds
5 approaches to positioning strategy:
1. Positioning by attribute. Most common positioning strategy associating a product with an attribute, a product feature, or a customer feature. Example: toothpaste –fights cavity, whitens teeth
2. By use or application. Represents a 2nd or 3rd position designed to expand the market. Example: Cellphone—texting, 2nd videocam, 3rd--email
3. By product user or class user. Associating with a specific lifestyle profile. Example: alcohol—pampamilya na pangsports pa
4. By product class. Example: camay—beauty soap, safeguard—family soap, ivory-mild soap for sensitive skin 5. By competitors. To convince consumers that a brand is better than the market leader or another well-accepted brand on important attributes. Commonly done in advertisement where competitor is compared. Example: tide compared with brand x and brand y
Positioning Map. A visual depiction of consumers perceptions of competitive products, brands, or models. It is done by surveying consumers about various product attributes and developing dimensions and graph indicating the relative positions of competitors.
Select Segmentation Strategy
Four Basic Alternatives
1. The firm may decide not to enter the market. This may mean there are no viable market niche for the product or brand or model. 2. The firm may decide not to segment but to mass marketer. This may be appropriate in three situations— a. When the market is so small that marketing to portion of it is not profitable b. When heavy users make up such a large proportion of the sales volume that they are the only relevant target. c. When the brand is dominant in the market and targeting to a few segments would not benefit sales and profits. 3. The firm may decide to market to only one segment
4. The firm may decide to market to more than one...