Market Segmentation Targeting and Positioning
MARKET SEGMENTATION, TARGETING and POSITIONING
Objectives:
At the end of the lesson, students will be able to:
• Define market segmentation, market targeting, and market positioning.
• Discuss the major bases for segmenting consumer and industrial markets
• Explain how companies identify attractive market segments.
• Explain how companies position their products in the marketplace.
TARGET MARKETING
Different Marketing Practices
Organizations recognize that they cannot appeal to all buyers in a given market.
Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices.
So instead of trying to compete in the entire market, each company must identify parts of the market that it can serve best. This practice is known as TARGET MARKETING.
Mass Marketing
Product-Variety Marketing
Target Marketing
In MASS MARKETING, the seller mass-produces, mass-distributes, and mass-promotes one product to all buyers. It leads to the lowest costs and prices and creates the largest potential market.
E.g. At one time, Coca Cola produced only 1 drink for the whole market.
In PRODUCT-VARIETY MKTG, the seller produces 2 or more products that have different features, styles, quality, sizes, etc. Seller recognizes that buyers have differing tastes that change over time.
E.g. Coca-Cola made several soft drinks in diff. sizes and containers.
In TARGET MARKETING, the seller identifies market segments, selects one or more of them, and develops products and marketing mixes tailored to each.
E.g. Coca-Cola now produces soft drinks for the ff. segments:
1. sugared cola (Coke Classic)
2. diet (Diet Coke, Coke Zero)
3. no-caffeine (Caffeine-free Coke) 4. non-cola (Minute Maid sodas)
Today's companies are moving away from mass marketing and product-variety marketing and toward target marketing.
Advantages
• Can better help sellers find their marketing
Objectives:
At the end of the lesson, students will be able to:
• Define market segmentation, market targeting, and market positioning.
• Discuss the major bases for segmenting consumer and industrial markets
• Explain how companies identify attractive market segments.
• Explain how companies position their products in the marketplace.
TARGET MARKETING
Different Marketing Practices
Organizations recognize that they cannot appeal to all buyers in a given market.
Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices.
So instead of trying to compete in the entire market, each company must identify parts of the market that it can serve best. This practice is known as TARGET MARKETING.
Mass Marketing
Product-Variety Marketing
Target Marketing
In MASS MARKETING, the seller mass-produces, mass-distributes, and mass-promotes one product to all buyers. It leads to the lowest costs and prices and creates the largest potential market.
E.g. At one time, Coca Cola produced only 1 drink for the whole market.
In PRODUCT-VARIETY MKTG, the seller produces 2 or more products that have different features, styles, quality, sizes, etc. Seller recognizes that buyers have differing tastes that change over time.
E.g. Coca-Cola made several soft drinks in diff. sizes and containers.
In TARGET MARKETING, the seller identifies market segments, selects one or more of them, and develops products and marketing mixes tailored to each.
E.g. Coca-Cola now produces soft drinks for the ff. segments:
1. sugared cola (Coke Classic)
2. diet (Diet Coke, Coke Zero)
3. no-caffeine (Caffeine-free Coke) 4. non-cola (Minute Maid sodas)
Today's companies are moving away from mass marketing and product-variety marketing and toward target marketing.
Advantages
• Can better help sellers find their marketing