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Chapter-5 : Segment ation,

Target ing and Posit ioningLecture-6

Course: Promot ional Management

MKT-337

Facult y: Abdullah Al Faruq (Afq)

North South University

Introduction

Segmentation

- A process of br eaking a mark et of var ied custom ers intosubgroups of customers t hat have simil ar needs, desiredproduct benefits, and purchase behavior.

Targeting

- The process of evaluatin g each m arket segment satt ractiveness and selecting one or mor e segment s toenter.

Positioning

- The process of prom pti ng buyers to form a part icularmental impr ession of your pr oduct relative to it scompetitors.

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Why is Segmentat ion I mport ant?

Segmentat ion provides three benefits to the adverti ser namely:

a. More eff icient use of resources

- Every adverti ser has finit e resources that t hey need to u se

effectively and efficient ly to pr oduce greater r esult s. By

investment s because good target s/ custom ers are more recepti vethan t he market as a w hole.

b. Bett er understanding of customer needs

- By segmenti ng th e market an advert iser can develop better

understanding of t he market/ customer needs and demand anddevelop promot ion m ix accordingly.

c. Better understanding of t he compet itors

- By segment ing the market an advert iser can develop bet terunderstanding of t he competit ors/ r ivals so th at t hey can developth eir str ategies to compete effectively and efficiently.

How do Advert isers Segment Market s?

Advert isers segment s a market b y w ay of demography;geography; psychographic.

Demographic Segmentation

- A process of segment ati on w hereby, advert isers usescharacteristics arising from demographic characteristics ofthe market.

- The charact eristics includes age, gender, race, household

type, home-ow nership, education, employm ent and in come.

Geographic Segment ati on

-

segment s based on geographic boun daries.

Psychographic Segment ation

- The process of segmenting t he market according topsychographic characteristics like m otivat ion, att itu de, life-style, personality, behavior, brand loyalty.

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Targeting an At t ractive Segments

An advert isers considers four factors in t argeting anatt ractive segments namely:

a. Prof itable opportunit ies: The market segments must off eropportunit ies to m ake bott om-l ine/ prof it . The segment has

plough back cost and generate pr ofit .

b. Growth potent ial : The segment has t o have a pot enti al of

grow th in term s of market share and market size.

c. Acceptable r isks: The segment that th e advertiser is

target ing and the ri sk involved in choosing and t argeting

manage.

d. Acceptable entry and exit barrier: The advert iser looktow ards factors comprising of t he entry barri ers and exit

barriers. I f bot h are low th en advert iser chance of selectin gth e segment is high.

Target Marketing Opt ions

Advertisers can choose four basic categori es of tar getmarket ing:

a. Un-dif ferent iated market ing:The basic target marketin gw hereby advertiser target t he mass-market and design t headver t isi n cam ai n su it ab le f or t he vast m a or it of t hepopulation.

b. Dif ferent iated market ing: A target m arketing strategy w herebyadvert iser t arget several m arket segments by providing samegroup of pr oducts. Therefore, advertising campaign isundertaken t hat m ultiple segment group can understand.

c. Concentrated market ing: Whereby, advert iser picks a single

target segment and design t he advertising campaignaccordingly.

d. I ndividual ized market ing: Every customer is treat ed as uniquet arget segment and advert ising campaign is design that bestsuits the unique customer only.

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Posit ioning: Moving int o Audience Mind

- Advert ising plays a very vital role in positioning aproduct/ service in the minds of the consumer.

- Advertising campaign i s designed t o send in m essages inrelation to product/ service that create an unique position intheir m inds such that by hearing the name of the product anaudience can t hink of features and benefits in relation t o theproduct or service.