segmentation, targeting, and positioning professor lawrence feick university of pittsburgh
TRANSCRIPT
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Segmentation, Targeting, and Positioning
Professor Lawrence Feick
University of Pittsburgh
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Outline
• Definitions• Segmentation and Targeting
– segmentation bases– criteria
• Positioning– definition and uses– perceptual maps
• Summary
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Definitions: markets
• Market– people or organizations with the willingness, ability,
and authority to buy a product
• Target market– people or organizations to whom a particular
marketing mix is aimed
• Segmentation– dividing a heterogeneous market into homogeneous
submarkets
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Definitions: targeting approaches
• Mass market (undifferentiated marketing)
• Segmentation– focus (concentrated marketing, niche
marketing)– multi-segment (differentiated marketing)
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Segmentation questions
• Segmentation– dividing a heterogeneous market into
homogeneous submarkets
• Questions:– heterogeneous on what?– on what basis to divide?– how finely to divide?
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Segmentation bases
• Segmentation base: the variable or variables on which the market is divided
• A good segmentation base should:– yield differences in product behavior– give insight into why consumers buy– help guide marketing mix decisions
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Types of segmentation bases
• Independent of product category– demographic characteristics– geographic characteristics– psychographic/AIO characteristics
• Product category related– benefits sought/needs met – product usage, brand loyalty, price sensitivity
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Examples of demo/geo-graphics
• Age
• Income
• Education
• Marital status
• Family lifecycle
• Region of country
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Ebony, June 1998
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Family Circle, June 1998
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Proprietary geodemographic segmentation solutions
• Census data updated and augmented with purchases, subscriptions, auto registrations
• Group (cluster) geographic regions that are similar: often zip code-based
• Uses: direct mail, media buys, site location
• Eg: PRIZM from Claritas. Check it out:– http://www.claritas.com/prizm.htm
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Examples of psychographics
• Activities– work, hobbies, social events, vacation, clubs
• Interests– family, home, job, community, fashion, food
• Opinions– self, politics, social issues, business, culture
• Lifestyle– VALS2 groups
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What is your VALS 2 type?
• Typical questions:– I follow the latest trends in fashion– I would rather make something than buy it– I would like to spend a year or more in a
foreign country
• Check it out at:– http://future.sri.com/vals/survey.html
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Examples of benefits sought
• Toothpaste– cavity prevention, whiteness, fresh breath
• Cake mix– ease of preparation, cost, taste, uniqueness
• Cameras– ease of use, technical features, compactness
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Redbook, July 1998
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Examples of product-related segmentation
• Product usage: nonusers, light users, heavy users– e.g., beer, soft drinks, movie renters
• Brand loyalty: loyals and switchers– e.g., laundry detergent, coffee
• Price sensitive v. price insensitive
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Selecting segments
• Segment size
• Segment growth and growth potential
• Present and future competition
• Consumer purchase ability and likelihood
• Reachability
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Positioning
• Usage is sloppy- often combining a brand’s position with the marketers actions to create the position
• Position: brand meaning perceived by the target market in terms of– other, competing products– perceived product characteristics, features
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How the manufacturer sees the product
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Manufacturer’s view
• It is made from a durable alloy
• It is sold through independent dealers
• It has a three year warranty
• It is the best we have ever produced
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How the customer sees the product
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Target market’s view
• It looks really good and seems sturdier than brand x or y
• Can it fit in my apartment?
• Would people like me buy one?
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Positioning matters!
• Virginia Slims
• Acura, Lexus, Infiniti
• Vodka
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What affects a product’s position?
• Product: design, features, style, packaging, warranty
• Price: price level, discounts
• Promotion: message, media, sales promotion, publicity
• Distribution: exclusivity of coverage, types of retailer
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Issues in positioning
• What/how many characteristics do consumers use to distinguish products?
• Where are existing products located with respect to these characteristics?
• Where is an ideal product located?
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Perceptual mapping
• Statistical tools used to locate products in terms of perceived characteristics
• Interpretation:– Products closer together are perceived as
similar– Similarity relates to competitiveness
• Can also plot “ideal points”
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Perceptual maps: examples
• Pain reliever map (text page 251)
• US auto industry circa 1985
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Perceptual map of the US auto market circa 1985
Practical, inexpensive to own and operate
Classy, prestigious, distinctive
Sporty, youth oriented, performance
Conservative,
older appeal
Toyota
Mercedes-Benz
BMW
Porsche
Chrysler
BuickOldsmobile
Dodge
Datsun
Chevrolet
Cadillac
Volkswagen
Pontiac
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Questions
• What is the most likely competitor for Cadillac?
• Would a GM manager be happy about Buick and Oldsmobile?
• How is VW perceived in the US in 1998 compared to the mid 1980s?
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Reprise: segmentation, targeting, and positioning
• Benefits:– focus on meeting customer needs, wards off
competition, and helps anticipate changes– increases focus on longer term relationship
• Costs– segments foregone
• Issues– Colt 45, Joe Camel