Lesson 1

• Who is the market?

  1. Market Segmentation
  2. Market Targeting
  3. Market Positioning
• Market Segmentation is designed to divide the market into small segments with distinct needs, characteristics, or behavior.

  • Homogeneous
  • Niche entrepreneurial marketing
• geographic segmentation - climate
• geographic segmentation - dominant ethnic group
• geographic segmentation - density (rural or urban)
• geographic segmentation - culture
• geographic segmentation - Classification of the geographical unit (first class, second class, etc.)
• demographics segmentation - gender
• demographics segmentation - income
• demographics segmentation - education
• demographics segmentation - ethnic group
• demographics segmentation - age
• demographics segmentation - occupation
• demographics segmentation - religion
• demographics segmentation - family size
• psychological segmentation - attitude
• psychological segmentation - needs and wants
• psychological segmentation - brand concept
• psychological segmentation - knowledge and awareness
• psychological segmentation - social class
• psychological segmentation - personality traits
• psychological segmentation - lifestyle
• behavioral segmentation - perceptions
• behavioral segmentation - reactions
• behavioral segmentation - benefits
• behavioral segmentation - knowledge
• behavioral segmentation - loyalty
• behavioral segmentation - responses
• Points to consider

  1. Accessibility of the market segment
  2. Size of the market segment
  3. Distinction of the market segment
• Market Targeting - Identification process that aims to determine the set of buyers with common needs and characteristics.
• market targeting - evaluating each market segment andselecting the target market segmentor segments to serve.
• Market Segment Evaluation

  1. Size and growth of the segment
  2. Structure of the segment
  3. Capability of the segment
• The segmentation process is easily facilitated through the use of -segmentation matrix
• Market Segment Selection

  1. Individual or one-on-one marketing
  2. Differentiated or concentrated marketing
  3. Mass of undifferentiated marketing
• Individual marketing - Products are tailored to the needs of individual customer
• Differentiated - Several segments are covered and products are designed to suit the specific needs of a particular segment
• Concentrated - Only one or few segments are covered, but the product is designed for the majority of the consumers in the segment market
• Mass marketing - Products are mass produced for the whole market where consumers are not differentiated.
• Market positioning - Process of determining the place of the business in the industry. It is an act of placing the business in a specific place in the industry or placing the product in a certain place in the market.
• Market Positioning

  1. Determines if the market position is distinct from others.
  2. Evaluates the advantages or benefits of every possible market position
  3. Decides on the market position