Market Segmentation

Powerful Essays
Topics: Marketing
6
Market Segmentation and Positioning
Positioning is not what you do to a product; it is what you do to the mind of a prospect.
Ries and Trout (1972)

Learning outcomes
After reading this chapter, you will be able to:

✔ Describe the principles of market segmentation and the STP process. ✔ Explain the characteristics and differences between market segmentation and product differentiation.

✔ Explain how market segmentation can be undertaken in both consumer and business-to-business markets.

✔ Describe different targeting strategies. ✔ Explain the concept of positioning. ✔ Illustrate how the use of perceptual maps can assist the positioning process.

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Part 2 Principles of Marketing Management

Stagecoach operates bus services across the UK. How does it know who its customers are and where they want to access its services? We speak to Elaine Rosscraig to find out more.

Elaine Rosscraig for Stagecoach
Stagecoach UK Bus is one of the largest bus operators in the UK, operating both express and local bus services across the country. In addition the company operates a comprehensive network of intercity operations under the Megabus Brand. We connect communities in over 100 towns and cities in the UK, operating a fleet of around 7,000 buses. We carry over two million customers every day on our network which stretches from Devon to the north of Inverness. So how do we identify who our customers are and where they may wish to access our services? Well, that’s a very interesting and important question. At Stagecoach we have formulated our segmentation and positioning strategy using primary research. By using the results of the primary research we have identified our key market segments, which have been compiled into three groups, all of which are linked to bus use. These groups may be categorized as: user, lapsed user, and non-user. A major issue to consider is how public transport is currently perceived by these target segments. Public

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