1. Segmentation Targeting and Positioning
Learning Unit 4

2. Outcomes
Know what the marketing strategy is and why it is the focus of the text
Understand the target market
Be familiar with the basics of the marketing mix
Know what market segmentation is and the segmentation bases
Know three targeting approaches
Know what positioning is and why is it useful
Understand differentiation

3. Marketing strategy
Is the big picture of what the company plans to do in a market….
Marketing Strategy = Target market + Related marketing Mix

4. Target market

6. 4 P’s

7. Segmentation
Dividing up a market of consumers with different needs into groups or segments with similar needs.
Market segment = relatively similar, who respond the same way to a marketing mix
Each segment with different needs need to be treated differently

8. Segmentation

9. Dividing up a market of consumers with different needs into groups with similar needs.

10. When dividing a market…..
Homogeneous within: Customers are similar and will respond in a similar way.
Heterogeneous between: Customers in different segments are very different from each other.
Substantial: Enough people in segment to make it financially viable
Operational: Can be identified, and reached via media and distribution

11. Dimensions for segments
Demographic - Age, gender, income, occupation…
Psychographic – lifestyle, activities, interests
Behavioural – How they use the product, where, when how much, how often do they buy the product
Geographic – Where they live

12. Targeting If segmentation done ------ targeting
3 basic options to targeting
Single target market approach
Multiple target market approach
Combining – 2 or more
Mass marketing

13. Positioning
How consumers THINK about or PERCEIVE your product relative to competitors products in a market.
Your four P’s will help with positioning….

14. How do we develop marketing mixes?
Product: The need satisfying offering.
Can be a physical product or service or combination of both

15. Place
Getting the product to the place where it has to be sold.

16. Hair salon

17. PRICE $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
The right price will sell your product.
Price considers: Costs, Competition & Consumer reaction
3 C’s

18. PROMOTION All about communication
All about telling the target market about your product
Tools of the promotional mix:
Personal selling (using a sales person – direct contact)
Mass selling (advertising & publicity)
Advertising: paid form, non personal presentation of ideas by an identified sponsor
Publicity: unpaid form, non personal presentation of ideas and services by an identified sponsor

19. Advertising

20. Publicity

21. Sales promotion
Activities other than advertising, publicity and personal selling that stimulate interest.
Buy one get one free,
Buy three get the cheapest for free
40 % down on all ladies shoes till Saturday…..

22. 4p’s - Need to be balanced

23. Marketing a service – add 3 p’s
People
Process
Productivity
The needs of your target market determine your MIX!

24. THE END