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Explain how marketers develop a targeting strategy. Understand how a firm develops and implements a positioning strategy.
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Market targeting
Market positioning
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The purpose of segmenting a market is to design a separate marketing mix tailored to the specific desires of each segment.
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Segmentation by Demographics
Demographics: statistics that measure observable aspects of a
population, including age, gender, ethnic group, income, education, occupation, and family structure. Demographic factors are attractive to use as segmentation variables because they are (relatively) easy to identify and measure. Segmenting by age is interesting due to Canadas unusual population distribution, caused by our recent history.
1996 Canadian Population by Selected Age Group
75 plus 65 to 74
Population
Female Male
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75 plus 65 to 74
Population
Female Male
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Number
26,994,045 19,199,790 7,794,250 5,611,050 12,047,920 6,129,680 8,389,180 4,146,065 911,560 750,055 406,645 358,180 272,810 246,890 151,150 100,725 470,615 1,002,670 1,607,230 586,645 324,840 157,250 84,005 214,265 245,840 1,446,355
Percent
100.0% 71.1% 28.9% 20.7% 44.6% 22.6% 31.1% 15.2% 3.4% 2.8% 1.5% 1.3% 1.0% 0.9% 0.6% 0.4% 1.7% 3.7% 5.9% 2.2% 1.2% 0.6% 0.3% 0.8% 0.9% 5.4%
Segmenting by ethnic origin can be useful, if we know that consumption behaviour is different between groups. Canada has a diverse population by ethnic origin, and this trend will continue in the future as the majority of population growth continues to be due to immigration, and not birth rate.
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Geodemography: a
segmentation technique that combines geography with demographics. The basic assumption of geodemography is that people who live near one another tend to share similar characteristics.
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Segmentation by Psychographics
Psychographics: information
about the activities and interests, and opinions of consumers that is used to construct market segments.
Segmentation by Behaviour
Behavioural segmentation: technique that divides consumers
into segments on the basis of how they act toward, feel about, or use a product or service.
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Targeting
Target market: group or groups that a firm selects to turn into
customers as a result of segmentation and targeting.
The objective of targeting is to choose the segment(s) that the company can most profitably serve, given its resources and capabilities.
Positioning
Positioning: developing a marketing strategy aimed at influencing
how a particular market segment perceives a product or service in comparison to the competition.
Brand personality: a
distinctive image that captures a product or services character and benefits.
Perceptual map: a
picture of where products or brands are located in consumers minds.
Copyright 2003 Pearson Education Canada Inc.
Figure 8.4
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