Key Marketing Strategy Decision Making

How to divide up markets into meaningful customer groups (market segmentation), choose which customer groups to serve (target marketing), and create marketing offers that best serve targeted customers (positioning).

Segmentation:

Breaking a market of varied potential purchasers into subgroups of specific purchasers with similar needs, desired product benefits and purchase behaviors.

Demographic Segmentation:

Age, sex, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, social class-is also sometimes put under psychographics.

Geographic Segmentation

By region, city, metro size, density, climate; plus by countries and territories.

Psychological Segmentation

Social class--Lower lowers to Upper uppers. Social class is also under demographics.

Lifestyle-- achievers, strivers, and strugglers

Personality-- Compulsive, gregarious, authoritarian, and ambitious

Lifestyles/Attitudes/Interests and Opinions

Behavioral Segmentation:

Occasions (regular occasions, special occasions, holidays, vacations). Orange juice for breakfast, Mother’s Day, Father’s Day.

Benefits (quality, service, economy, convenience, speed---Quality, Time, Money),

User status (nonuser, ex-user, potential user, first-time user, regular user),

Usage rate (light, medium, heavy user),

Loyalty status (None, medium, strong, absolute),

Readiness attitude toward product (aware, interest, desire, intending to buy),

Attitude toward product (enthusiastic, positive, indifferent, negative, hostile).

Technographical Segmentation

Another way to segment has been added to marketing’s segmentation, targeting and positioning called

“Technographics.”

“Technographics.” In the emerging study of what technologies different segments or groups of people use and how they use them. Are they using email, Facebook, or Twitter? Do they like to create content, read or review another person's content, or are they sitting on the technology sidelines?

Targeting

The market segment or segments toward all marketing activities will be directed.

Positioning

The art of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the target customers’ minds. A product’s position is the way the product is defined by purchasers or consumers on important attributes---the place the product occupies in consumers’ minds relative to competing products.