Market Segmentation and Positioning Strategies
Market Segmentation: Definition and Process
Market segmentation is the process of dividing a potential market into various consumer groups and selecting one or more target market segments to communicate a marketing strategy.
Requirements for Effective Market Segments
- Identification: Segments should be separated by common features.
- Sufficiency: Each segment should cover a sufficient number of people.
- Stability: Segments should be reasonably stable over time.
- Accessibility: Marketers should be able to reach
Market Research: Segmentation, Concept & Product Testing
I. Segmentation and Positioning Studies
How Can We Identify Homogeneous Groups of Consumers or Segments?
- A Priori Segmentation: This is done before the study starts, using basic variables such as age, sex, socioeconomic level, lifestyle, etc. (traditional approach).
- Cluster Segmentation: This is done afterward, when the analysis of results is ready. It is more oriented toward psychographic variables and attributes of products.
Techniques Used in Cluster Segmentation and Positioning Studies
- Quantitative
- Very
Customer Relationship Management and Marketing Strategies
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) is an approach to managing a company’s interaction with current and future customers. The CRM approach tries to analyze data about customers’ history with a company to improve business relationships with customers, specifically focusing on retaining customers to drive sales growth. CRM systems compile information from a range of different channels, including a company’s website, telephone, email, live chat, marketing materials,
Read MoreLidl’s Brand Repositioning: Quality Meets Affordability
As explained, Lidl now has a new image: good quality and good price. As brand manager, to achieve the new positioning, I had to take into account the new target that Lidl is focusing on now. To do this, we have to carry out a segmentation. A new segment has been identified, which is more concerned with product quality but also takes into account price. This segment has a good potential size, and it has been concluded that through marketing actions, both advertisements and actions in the same establishment,
Read MoreStrategic Marketing and Communications: A Comprehensive Approach
Marketing Plan
An instrument for directing and coordinating the marketing effort. Strategic: Lays out the target market and the firm’s value proposition based on the analysis of the best market opportunities. Tactical: Specifies marketing tactics like product features, promotion, pricing, and sales channels.
Communication Strategy
Push: To influence end-user consumers, they use the manufacturer’s sales force, trade promotion, and money. Pull: Uses advertising and promotion to persuade consumers to
Read MoreMCAD Market Segmentation and Positioning Strategies
Defining and Selecting the Target Audience in MCAD
Once the company has identified opportunities for segmentation of the Mechanical Computer-Aided Design (MCAD) market, it must decide which and how many segments to target.
Rating MCAD Segments
In the assessment of different segments of MCAD, a company must look primarily at two factors:
- Attractive structural segment: Size, growth, profitability, economies of scale, and low risk.
- Resources and business objectives: The segment must align with the company’