Quiz 2: Segmentation , Targeting and Positioning Guideline
1) Segmentation > Targeting > Positioning ( see the meaning of segmentation , targeting and positioning)
2) Segmentation bases – factors that are used to define overall market up into individual segment.
a. Geographic
b. Demographic
c. Psychographic
d. Behavioral
** note : Essay Questions >> see what they are and example
3) Segment Evaluation
4) Market Growth Rate - The increase in size or sales observed within a given consumer group over a specified time frame.
a. In order to calculate , you need to know how to calculate market size by multiple sale volume with selling price.
b. Then use market size to predict the growth by using formula
% market growth = market size of current year – market size of previous year / Market size of current year x 100
* Note calculation ( I did not give you formula to calculate market size , so u need to remember formula by urself.
5) Target Market segment strategies
a. Undifferentiated (mass) marketing –design one product to serve the entire market. ( think of Yakult company)
b. Differentiated (segmented) marketing – Provide different products or marketing mix to serve different segments. ( Toyota , Honda provide different cars model to serve different income level) .
c. Concentrated (niche) marketing- Pick up one segment to serve. Segments that they pick up must have a better marketing program for its target market as compared to its competitors.
An example of concentrated marketing is the marketing of Rolls Royce cars, which targets the premium car market segment.
6) Market Position - is a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer.
a. Tool to position – perceptual mapping
b. Criteria used to positions: Product features, price, product class and benefits
c. Positioning strategy has two dimensions
i. Price - more , the same and less ( compare to competitors)
ii. Value proposition – full mix of benefits > more , the same and less ( compare to competitors)
iii. More for more – high price , high quality e.g. apple
iv. More for the same – more benefit and the same price e.g. lexus and BMW
v. More for less – More benefit and low price ( think of retailer such as tesco ) >>> this is winning strategy
vi. Same for less – same benefit but low price ( PC from dell is believed to have same quality as Apple PC but lower price)
vii. Less for much less – Less benefit and less in quality ( 20 baht store , Daiso ).