Understanding Product/Service Positioning Competencies 76-82 Marketing I

Agenda Competencies Describe market identification and segmentation. Explain positioning and its relationship to target market. Identify the competition for a selected product or service. Determine the product/service’s position relative to those of the competition. Identify the target market of the selected product/service. Determine the most effective channels to position the selected product/service.

Market Identification Process of identifying the market and most profitable areas in which to offer a product or service Market refers to people who share similar needs and wants and have ability to purchase Target Market refers to the group of customers towards which marketing efforts are aimed

What is Target Marketing? Knowing EXACTLY WHO will/ or who does buy your proudt Knowing EXACTLY HOW to reach them Identifying those customers by segmenting the market Marketing based on research of hobbies, interests, needs and ability to purchase the product “If You Build It, They Will Come” (…with “target marketing”

Market Segmentation Is a marketing strategy Divide market in to groups with similar needs, interests, and priorities Allows companies to better satisfy needs of customers

Ways to Segment Market Demographics Demographics are characteristics of a population Age Gender Income Ethnicity Education Level Statistical data

Demographics Age Gender Income Marital Status Ethnic Background

Dividing the market based on geography Geographics Dividing the market based on geography Local, Regional, National, Global Develop products/ Determine promotion/Target needs based on geography

Psychographics Analysis of consumer lifestyles Research to identify consumer interests, activities hobbies, and opinions

Psychographics Involves Targeting by Generation

Comparison of Generations

Positioning Marketing Stragegy Process of Identifying Market Niche for product/brand and getting it established Make a brand occupy a distinct position in the mind of the customer, in comparison to the competition.

Relationship of Positioning to Target Market Positioning creates an image of product or service in mind of customer The customer has been “targeted” – or is identified as the target market Positioning is NOT what a company does to a product, but what the company does to a target customer’s mind!

How to Position Identify Competitors Assess Consumers’ Perception of Competitors Determine Competitors’ Positions Analyze the Consumers’ Preferences Make the Positioning Decision Monitor the Position

Project Select a product Identify the market for the selected product Identify competition of selected product Determine the product’s position relative to those of the competition Identify the target market of the selected product Determine most effective channels to position the selected product Create a PPT presentation to deliver to the class that summarizes your research 100 Points