MGT 2306

MARKETING MANAGEMENT

Lesson 6
 LESSON 6 OBJECTIVES

• Define Segmentation, Targeting and

Positioning
• Describe the bases of segmentation,
differentiate targeting strategies and distinguish
different types of positioning strategies
• Be able to manipulate the marketing mix
according to the segmentation requirements
 MARKET SEGMENTATION
Market segmentation is a marketing strategy that
involves dividing a broad target market into subsets
of consumers, businesses, or countries who have
common needs and priorities, and then designing
and implementing strategies to target them.
 FOUR BASES OF SEGMENTING
CONSUMER MARKETS

* ACORN: A Classification of Residential Neighborhoods

 CHARACTERISTICS OF
EFFECTIVE SEGMENTATION

Measurable

Requirements
Actionable for Accessible
effective
segmentation

Substantial
Measurable
members can be identified
the size and purchasing power of the
segment can be measured
Accessible
they can be reached through media and
distribution channels
they can be effectively served
Substantial
they are large enough to be profitable
Actionable
a cost-effective marketing program can
be designed to attract and serve the
segment
 DEFINITION OF TARGETING
“The selection of a segment and developing
marketing strategies that focus on meeting the needs
of that particular segment of market”
 TARGET MARKETING STRATEGIES

There are 3 approaches to

target marketing strategies:-

a) Mass Marketing
b) Differentiated Marketing
c) Concentrated/Niche Marketing
d) Micro marketing
 MASS MARKETING

• Mass Marketing is a coverage strategy where a

company markets or attempts to sell through
persuasion a product/event to a large audience.
• So in effect the message will reach the largest
number of people possible and traditionally it
has focused on radio, television and
newspapers as a medium.
 DIFFERENTIATED MARKETING
• Is where a company/product attempts to appeal to
two or more clearly defined market segments with a
specific product and unique marketing strategy
tailored to each separate segment.
 CONCENTRATED/ NICHE
MARKETING
• Is a market segmentation and coverage strategy
whereby accompany/ product is developed and
marketed for a very well-defined, specific segment
of the consumer population.
• The marketing plan will be a highly specialized one
catering to the needs of that specific consumer
segment.
 WHAT IS POSITIONING?
• A marketing strategy that aims to make a brand
occupy a distinct position, relative to competing
brands, in the mind of the customer.
• Companies apply this strategy either by
emphasizing the distinguishing features of their
products or a suitable image through advertising.
 WHAT IS BRANDING?
• The process involved in creating a unique name
and image for a product in the consumers' mind,
mainly through advertising campaigns with a
consistent theme.
• Branding aims to establish a significant and
differentiated presence in the market that attracts
and retains loyal customers.
LET’S WATCH A VIDEO..
HIDDEN MEANINGS IN BRANDS
 High-Tech
Innovative
Grade AA Creative
4-stars rating Product Product
class attributes
Just do it
Open Benefits Cheapest
Away from Fastest
Happiness offered
competitors
Positioning
Against a Strategies Usage When you
competitor occasion most need

The better
choice
Works better Users Beginners
Professionals
 AREAS OF COMPETITIVE
ADVANTAGE

Product Service

Areas for competitive

differentiation

Personnel Image
 Examples of Positioning Adverts

The Duracell Bunny Fedex - Zhang

Commercial