Market Segmentation
There is no single way to segment a market one has to try different
segmentation variables to find the best way to view the market structure
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4) Behavioral Segmentation
Divided based on their knowledge, attitudes, uses of, or responses to a
product
- Many believe that it is the the best starting point for building market
segments
o Occasions: when buyers get the idea to buy/ make the
purchase/ use the purchased item
o Benefit Sought: according to the diff benefits that consumers
seek from the product finding the major benefits people
look for in the product class, the kinds of people looking for
each benefit and the major brands that deliver each benefit
o User Status: non user, ex user, potential user, first time user,
regular user
o Usage Rate: light, medium and heavy product users
o Loyalty Status: undivided loyalty, divided, spurious (repeat
purchases with poor relative attitude), latent (fav attitude but
low repeat purchaser), no brand loyalty
*Mkters are increasingly using multiple segmentation bases to identify
smallers, better defined groups this provides a powerful tool for
marketers, helping companies to identify and better understand key
customer segments
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Undifferentiated Marketing
A firm decides to ignore market segment differences and target the whole
market w one offer
- Focuses on what is common in the needs of consumers rather than on
what is different
Cost efficient
POSITIONING
A products position is the way the product is defined by consumers on
important attributes the place the product occupies in consumers minds
relative to competing products
Positioning Strategies
- Product attributes
- Usage occasions
- Directly against a competitor
- Benefits
- User class
- Product class
Points of Differences (PODs)
- Unique associations with a brand
- Clear superiority
Points of Parity (POP)
- Associations shared w other brands
- Necessary but not sufficient for brand choice
- Negate competitors PODs
- On par with competitors especially when consumers are
sophisticated and competition is intense
Pitfalls of Positioning
- Underpositioning
o Failing to position brand
o Vague idea of brand
o Dont know whats so special about the brand
- Overpositioning
o Giving buyers too narrow a picture of the brand, restrictive
Eg: starbs only sells coffeeeeee
- Confused positioning
o Leaving buyer with confused image of brand
Which differences should we promote?
- Relevance: is it important?
- Distinctive: competitors do not offer the diff or the company can
offer it in a more distinctive way
Once the company has chosen a position, it must take strong steps to
deliver and communicate the desired position to target consumers the
marketing mix efforts must support the positioning strategy.