MASTER OF BUSINESS STUDIES

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MASTER OF BUSINESS STUDIES

• Marketing
• Module(MKT714J1)
• MARKET SEGMENTATION, TARGETING AND POSITIONING
• WEEK 5

Paula Durkan Room 1B13 Tel [phone]
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MARKET SEGMENT
A relatively homogeneous group of customers who
will respond to a marketing mix in
a similar way. W. Perreault et al (2000)
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The Market Segmentation Process
1. Identify bases for segmenting the
market 2. Develop profiles of resulting
segments
3. Develop measures of segment
attractiveness 4. Select the target segment(s)
5. Develop positioning for each target
segment 6.Develop marketing mix for each
target segment
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The process of market segmentation and target
marketing
The disaggregated market
The segmented market
The target market
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2
3
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2
3
Marketing mix targeted at segment 3
Segment 3 is judged to be most attractive and a
marketing mix strategy is designed for that
target market
The characteristics of individual customers are
understood
Customers are grouped into segments on the basis
of having similar characteristics
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The advantages of market segmentation
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Segmenting consumer markets
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WELLS AND GUBAR LIFE-CYCLE STAGES
Bachelor stage (young single people not living
with parents) Newly married couples without
children Full nest I (youngest child under
6) Full nest II (youngest child 6 or over) Full
nest III (older married couple with dependent
children) Empty nest 1 (no children living at
home, family head in work) Empty nest II (family
head retired) Solitary survivor (in
work) Solitary survivor (retired)
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SOCIO-ECONOMIC GROUPINGS
A Higher managerial, admin. or professional B Inte
rmediate managerial, admin. or professional C1 Sup
ervisory, clerical, junior admin. or
professional C2 Skilled manual workers D Semi-skil
led and unskilled manual workers E State
pensioners, windows, casual and lowest
grade earners
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The ACORN Consumer Targeting Classification
Categories POP. Groups POP. A
Thriving 19.8 1. Wealthy Achievers, Surburban
Areas 15.1 2. Affluent Greys, Rural
Communities 2.3 3. Prosperous
Pensioners, Retirement Areas 2.3 B
Expanding 11.6 4. Affluent Executives, Family
Areas 3.7 5. Well-Off Workers, Family
Areas 7.8 C Rising 7.5 6. Affluent
Urbanities, Town City Areas 2.2 7.
Prosperous Professionals, Mentropolitan Areas
2.1 8. Better-off Executives, Inner City
Areas 3.2 D Setting 24.1 9. Comfortable
Middle Agers, Mature Home Areas 13.4 10.
Skilled workers, Home Owning Areas 10.7 E
Aspiring 13.7 11. New Home Owners, Mature
Communities 9.8 12 White Collar,
Better-off Multi-Ethnic Areas 4.0 F
Striving 22.8 13. Older People, Less Prosperous
Areas 3.6 14. Council Estate Residents,
Better-of Homes 11.6 15. Council Estate
Residents, High unemployed. 2.7 16.
Council Estate Residents, Greatest Hardship
2.8 17. People in Multi-Ethnic, Low Income
Areas 2.1 Unclassified 0.5
0.5
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Segmenting organizational markets
Macrosegmentation
Organizational size
Industry
Geographic location
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Evaluating Market Segments
Qualitative research
Quantitative research
Analysis
Validation
Profiling
Profiling
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Target marketing strategies

• Undifferentiated marketing
• Differentiated marketing
• Focused marketing
• Customized marketing

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Target marketing strategies
Differentiated marketing
Marketing mix 1
Marketing mix 2
Marketing mix 3
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Target marketing strategies
Focused marketing
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Target marketing strategies
Customized marketing
Marketing mix 1
Marketing mix 2
Marketing mix 3
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REQUIRED FOR EFFECTIVE SEGMENTATION

• 1. Measurability
• 2. Accessibility
• 3. Substantiality
• 4. Actionability

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PRODUCT POSITION A DEFINITION

• The way a product is defined by consumers on
  important attributes - the place the product
  occupies in consumers minds relative to
  completing products
• Kotler and Armstrong, 2001

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Positioning Strategies
Product attributes
Product attributes
Product class
Benefits
Usage
Not competition
Usage
Against competition
Users
POSITIONING STRATEGIES
Brands
Activities
Origin
Personalities
POSITIONING STRATEGIES