MKC1200 Lecture Notes - Lecture 5: Market Segmentation, Marketing Mix, Generation Z
26 May 2018
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MKC1200 Week 5 - STP
Week 5 - Segmentation, Targeting, and Positioning
●Market segmentation helps marketers determine which segments they should best
serve with their offerings.
Steps in Segmentation, Targeting, and Positioning
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Mass Marketing
●Company has one product and treats the market as one mass unit, no segmentation
●Rare now
One-to-One Marketing (Differentiated)
●Tailors and Hairdressers for example treat each individual differently
Target Marketing
●Different segments/ marketing mixes per segment
●When choosing target markets, the organisation needs to consider three factors:
○Its own resources
■Might target one segment only dueto high costs
○Market demand
■Target area due to high demand
○Competition
■Avoid area due to high competition
●With a differentiated targeting strategy, an organisation identifies a range of target
market segments, covering the majority of the total market, and for each market
segment developed a tailored marketing mix
Product and Market Specialisation
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●Product specialisation = have a particular wide range of product mix and target
different market segments
●Market specialisation = different marketing mixes targeting the same segment
●Lots of organisations use a combination of the two
●
Document Summary
Market segmentation helps marketers determine which segments they should best serve with their offerings. Company has one product and treats the market as one mass unit, no segmentation. Tailors and hairdressers for example treat each individual differently. When choosing target markets, the organisation needs to consider three factors: Might target one segment only dueto high costs. With a differentiated targeting strategy, an organisation identifies a range of target market segments, covering the majority of the total market, and for each market segment developed a tailored marketing mix. Product specialisation = have a particular wide range of product mix and target different market segments. Market specialisation = different marketing mixes targeting the same segment. Lots of organisations use a combination of the two. Each segment = different marketing mix based on positioning. How and why organisations segment markets (consumer and. Bases for segmenting consumer markets (geographic and demographic = most commonly used)
