Segmentation, Targeting, and Positioning Segmentation Product positioning strategy Bases for segmentation Positioning Targeting Repositioning Definition
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Segmentation: “Aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action.”
Although not all these consumers are completely alike, they share relatively similar needs and wants
Marketing action: involves efforts, resources, and decisions--product, distribution, promotion,
--e.g., Ritz Carlton
fast food restaurants
Potential for increased profit and ROI
Similarity of needs of consumers within
Differences of needs of members of different segments
Feasibility of serving each specific segments
Cost effectiveness of identifying members of each segment
Area characteristics: The PRIZM system
Income ≠ willingness to spend!
Single, never married
Presence of children
Usage rates and status
“80/20” rule—20% of consumers may account for 80% of consumption
Preferred shopping outlets
Typical behaviors of these consumers. Circumstances may involve occasional variations.
Lunch; not dinner
Good for children
NOTE: Repositioning is difficult. It will take a great deal of advertising support. There is no guarantee that consumers will cooperate!