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# Learning Objectives - Understand segmentation bases and criteria - Apply targeting strategies - Develop effective positioning strategies - Weeks 6-7: Factor and cluster analysis - Marketing fundamentals ## 1. Market Segmentation Bases **Demographic:** Age, gender, income, education, occupation.
Learning Objectives
- Understand segmentation bases and criteria
- Apply targeting strategies
- Develop effective positioning strategies
- Weeks 6-7: Factor and cluster analysis
- Marketing fundamentals
1. Market Segmentation Bases
Demographic: Age, gender, income, education, occupation. Most common base, easy to measure, but may not predict behavior well.
Geographic: Region, city size, climate, urban/suburban/rural. Useful when preferences vary by location.
Psychographic: Lifestyle, values, personality, interests. VALS framework (Values, Attitudes, Lifestyles). Rich profiles, harder to measure.
Behavioral: Usage rate (heavy/medium/light), brand loyalty, benefits sought, occasion. Most predictive of purchase behavior.
Criteria for Effective Segmentation: M.A.S.D.A.
- Measurable: Can segment size and characteristics be measured?
- Accessible: Can the segment be reached through promotion and distribution?
- Substantial: Is the segment large enough to be profitable?
- Differentiable: Do segments respond differently to marketing mix?
- Actionable: Can effective programs be designed for the segment?
2. Targeting Strategies
Undifferentiated (Mass): One product, one marketing mix for entire market. Economies of scale, but vulnerable to competitors targeting specific segments.
Differentiated: Different products/marketing for different segments. Higher revenue, higher costs. Most common approach.
Concentrated (Niche): Focus on one or few segments. Strong position in small market. Risky if segment declines.
Micromarketing: Customized for individuals or local markets. Most expensive, highest potential relevance.
3. Positioning
Definition: How a brand is perceived in the minds of consumers relative to competitors.
Perceptual Map: 2D graph showing brand positions on key attributes (e.g., price vs quality, luxury vs practical). Helps identify gaps and positioning opportunities.
Differentiation Strategies:
- Product (features, performance)
- Service (speed, quality, support)
- Channel (online vs store, exclusive vs wide)
- People (expertise, friendliness)
- Image (luxury, eco-friendly, innovative) Value Proposition: Concise statement of why target customers should buy from you. Includes key benefit, target segment, and point of difference.
Q1: What are the 5 criteria for effective segmentation (M.A.S.D.A.)?Measurable, Accessible, Substantial, Differentiable, Actionable. A segment that fails any criterion may not be worth targeting. Q2: Compare undifferentiated and differentiated targeting.Undifferentiated: one product for all (Coca-Cola initially). Economies of scale, but vulnerable. Differentiated: multiple products for segments (Coca-Cola now: Coke, Diet, Zero, etc.). Higher revenue, higher costs. Q3: What is a perceptual map and how is it used?Visual representation of brand positions on key dimensions (e.g., price vs quality). Marketers use it to identify market gaps, reposition brands, and understand competitive landscape. Q4: What is a value proposition?Statement of why target customers should buy from you. Template: "For [target segment], [brand] is the [category] that [key benefit] because [reason to believe]." Example: "For health-conscious professionals, our meal delivery is the convenient option that provides chef-prepared nutritious meals because we use fresh ingredients and dietitian-designed menus." Q5: What is the difference between segmentation, targeting, and positioning?Segmentation: dividing the market. Targeting: choosing which segments to serve. Positioning: how to compete in chosen segments. STP forms the foundation of marketing strategy. Join Discord PreviousConjoint AnalysisNextSPSS for Market Research