MKTG1001 Lecture Notes - Lecture 5: Wedding Planner, Socioeconomic Status, Value Proposition
Define the main steps in designing a customer-driven marketing strategy: market
segmentation, targeting, differentiation and positioning.
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List and discuss the main bases for segmenting consumer and business markets.
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Explain how companies identify attractive market segments and choose a market-targeting
strategy.
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Discuss how companies differentiate and position their products for maximum competitive
advantage.
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LO:
Segmentation
Markets consist of buyers, and buyers differ in one or more ways.
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They may differ in their wants, resources, locations, buying attitudes and buying practices and
preferences for buying channels such as ordering by mail, phone, the Internet or from a
physical location.
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Because buyers have unique needs and wants, each buyer is potentially a separate market.
Ideally, then, a seller might design a separate marketing program for each buyer.
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Addresses Q = what customers will be serve?
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= the process of dividing a market into groups of consumers with common needs - for the
purpose of selecting one or more segments to target with a distinct marketing strategy
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Market Segmentation:
Lecture 5/CH6 - Segmentation, Targeting and Positioning
(STP)
Wednesday, 11 April 2018
2:02 PM
Lectures Page 1
To help identify best strategic fit
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To better understand the market
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To identify gaps (opportunities) in the market
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To help develop innovative new products
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To avoid competition or to structure our own race
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Allow our offering to better meet needs
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To identify potential target markets.
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Gain a greater understanding of the marketplace.
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Help develop a marketing mix that is based upon the needs of a precise market segment.
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And be better able to exploit competitive weaknesses.
○
Better understand competitors and how they compete.
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Creative approaches to segmentation may generate new opportunities (thinking differently).
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Develop more products offerings in the same market, with each targeting a different market
segment.
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Reasons to segment:
Lectures Page 2
dividing a market into distinct groups of buyers with different needs, characteristics or
behaviour who might require separate products or marketing mixes.
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Market segmentation
1.
evaluating each market segment’s attractiveness and selecting one or more of the
market segments to enter.
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Market targeting
2.
setting the competitive positioning for the product and creating a detailed marketing
mix.
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Market positioning
3.
3 major steps:
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