Marketing Chapter 7: Market Segmentation, Targeting, & Positioning (Class Notes) – Flashcards
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Mass Marketing
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One marketing strategy (4Ps) for everyone in a market.
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What's wrong with Mass Marketing?
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You really don't know who your customers are so it's hard to meet their needs.
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Market Segmentation
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Dividing the defined market (product vs. customer) according to similar needs, characteristics or behaviors.
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Example in class with Barbie:
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Each segment have different needs are characteristics. You develop 4p's off of each segment. A. 3-10 years B. 11-15 years C. 30 + years
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Targeting
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The selected segments whose needs are satisfied by your 4P's.
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Targeting Market Strategies
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Undifferentiated, Differentiated, Concentrated, Customized (Pic in phone)
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Undifferentiated Marketing
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One market, one strategy.
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Differentiated Marketing
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More than one (3 Marketing Strategies and 3 Segments)
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Concentrated Marketing
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Picking one of the segments to focus on. - This is the type we are doing for our marketing plan
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Customized Marketing
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Each customer in each segment gets own marketing plan (4P's)
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Principles for Targeting a Segment
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Measurable, Substantial, Accessible, Differential
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Measurable
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You can gather information about your target
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Substantial
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Facts and figures, need numbers.
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Accessible
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Access the market, barriers to overcome.
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Differential
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Products are different and customers are different.
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Actionable
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You have the resources to do it.
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80/20 Rule or Paretos Law
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80% of your sales will come from 20% of your customers.
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Majority Fallacy
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A tendency to seek the 20% --- ignoring: 1. The intense competition 2. Putting all your eggs in one basket
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Majority Fallacy - Be cautious
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Look for small niche company instead of focusing on 20% as that can cause trouble. Go after big group but if they drop the contract you will go out of business.
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So Why Segment?
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To expand opportunities and find niches that are under-served.
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So why Target?
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Needs, Relationships, Costs, Competition, and Profit.
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Positioning
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The use of marketing to create a mental image of product in the mind of the target market.
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CEO Nolan Archibald (WSU student)
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Came up with Dewalt - Took long time to select name and color.
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Three Basic Positioning Strategies
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1. Reinforce existing 2. Depose 3. Reposition
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Publicity to create image
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Advertising to maintain image
