Segmentation, targeting, Positioning, Mapping Market analysis Maher ARAFAT, June, 2010
Market Analysis Knowing about markets is important, but businesses also need information about customers. Not all of us like or buy the same thing (music, food, books or shops). so businesses need to find some way of group people with similar tastes together, this is called SEGMENTATION. This will result in marketing products more successfully.
Why we need to segment our customers? Because in a good strategic plan, we are always working on growing the organization. How we grow? We grow by providing value. Growth = Value. What is value? People giving money for something in exchange.
Segmentation / Grouping so businesses need to find some way of group people with similar tastes together, this is called SEGMENTATION. This will result in marketing products and services more successfully.
Some examples … The magazines market … (Children, Teenage, women, men) The publishers segmented the market by age is this case. also they can segment the market by lifestyle and interests. (gardening, fishing, auto, decoration..)
Thing of the car market Write down how this market is segmented…? Try to give some examples of brands of cars targeted to each segment…
Car market segments Age: Income: Gender:
Car market segments Age: Golf vs. Verna Income: BMW 5 Series vs. Ford Focus Gender: Fiat vs. Tuscan
Targeting Businesses by knowing which segments they are targeting they can better decide: WHEN? WHERE? HOW? To advertise to attract those people.
Segmentation Criteria If asked to suggest segmentation criteria. Think about: The product/service and come up with realistic suggestions. If analysis is required, think about: Show the consequences of segmentation.
Segmenting Customers Consequences Knowing how, when and where to advertise can mean the business to spend less on advertising and be more successful in advertising This can lead to: lower prices , so higher sales, Profitability $$$$$$$