BSB126 Chapter Notes - Chapter 6: Value Proposition, Online Advertising, Marketing Mix
Chapter 6: Segmentation, Targeting, and Positioning
- Step 1: Establish overall strategy or objectives (segmentation)
oMust be consistent with firm’s objectives and current situation
oRecognise strengths, weaknesses, opportunities, threats (SWOT)
- Step 2: Segmentation methods (segmentation)
oDescribes segments – distinguish customer similarities/dissimilarities
oGeographic
Organise customers into groups based on where they live
Country, region, areas in a region etc.
oDemographic
Groups according to measured, objective characteristics
Age, gender, income, education etc.
Easy to identify and reach
Can lead to stereotyping – need to be aware
oPsychographic
How consumers describe themselves
Studies how people self-select based on characteristics of how they choose
to occupy their time and underlying psychological reasons
Self-values
Goals for life
Self-respect, self-fulfilment, sense of belonging
Determine the benefits target market may be looking for
Self-concept
Image people ideally have of themselves
Goal: to belong – Self-concept: fun-loving, gregarious
Lifestyles
The way people live in relation to how to achieve their goals
Varies based on income, profession, education level, upbringing,
peer influences etc.
VALS
oPredict consumer behaviour
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Document Summary
Step 1: establish overall strategy or objectives (segmentation: must be consistent with firm"s objectives and current situation, recognise strengths, weaknesses, opportunities, threats (swot) Step 2: segmentation methods (segmentation: describes segments distinguish customer similarities/dissimilarities, geographic. Organise customers into groups based on where they live. Country, region, areas in a region etc: demographic. Can lead to stereotyping need to be aware: psychographic. Studies how people self-select based on characteristics of how they choose to occupy their time and underlying psychological reasons. Determine the benefits target market may be looking for. Goal: to belong self-concept: fun-loving, gregarious. The way people live in relation to how to achieve their goals. Varies based on income, profession, education level, upbringing, peer influences etc. Vals: predict consumer behaviour, 8 segments: innovators, thinkers, believers, achievers, marketees, experiences, makers, survivors, benefit. Groups consumers on the basis of the benefits they derive from goods/services: behavioural. Divides into groups based on how they use the product.
