Segmentation, Targeting, Positioning

Summary

In this lecture on global marketing, the focus is on segmenting, targeting, and positioning products effectively. The importance of understanding the target audience and narrowing down market segments is emphasized, as a broad market can't cater to every consumer. Different strategies for market segmentation, based on demographics, geography, behavior, and psychographics, are discussed. Additionally, targeting strategies like standardized, concentrated, and differentiated approaches are explained. The final part focuses on positioning, showing how to differentiate products in the market and make them memorable to the consumer, with examples of brands like McDonald's and Warteg highlighting cultural positioning.

Takeaways

• 😀 Understanding market segmentation is crucial to determine the right target audience for a product.
• 😀 Not all people are potential customers—products need to be aimed at specific, well-defined audiences.
• 😀 A more specific target audience allows for better product development, marketing strategies, and customer satisfaction.
• 😀 Market segmentation helps break down a broad market into smaller, more manageable groups based on shared characteristics.
• 😀 Segmentation should be based on factors like demographics, geography, behavior, and psychographics to better address customer needs.
• 😀 Targeting a specific group increases the effectiveness of marketing efforts and product development, ensuring that products meet the needs of the audience.
• 😀 Different market segments, like social media platforms, cater to different audience groups with unique preferences and behaviors.
• 😀 Psychographics segmentation focuses on customers' values, lifestyle, and beliefs, such as the demand for halal products.
• 😀 Companies must evaluate the potential of a market segment by analyzing the number of consumers, competitors, and compatibility with the brand.
• 😀 Targeting strategies include standardized approaches for mass markets, concentrated targeting for smaller niches, and differentiated strategies for catering to multiple segments.
• 😀 Positioning products effectively involves creating a clear mental image of the product in the consumer's mind, using attributes, benefits, cultural connection, or differentiation from competitors.

Q & A

What is the primary goal of market segmentation in global marketing?

The primary goal of market segmentation is to identify specific audiences for a product, as not everyone in the broad market will be interested in or suited for the product. This allows for more efficient and targeted marketing strategies.

How does segmentation help in defining a target audience?

Segmentation helps in defining a target audience by narrowing down a large and diverse market into smaller, more specific groups based on common characteristics such as demographics, behaviors, and needs. This allows for more tailored marketing efforts.

What is the difference between 'audience' and 'public' in marketing?

An audience is a specific group of individuals who are potential consumers of a product or service, while the public refers to a much broader group that includes everyone, not all of whom are relevant to the marketing efforts.

Why is targeting a smaller audience considered more effective?

Targeting a smaller audience is more effective because it allows businesses to focus their marketing efforts on a specific group with higher chances of interest in the product, ensuring that the product meets their needs more closely and enhancing marketing efficiency.

What is the analogy of the pizza used to explain market segmentation?

The pizza analogy illustrates how a large, heterogeneous market (represented by a whole pizza) is divided into smaller, more manageable segments (slices) based on common characteristics. This segmentation helps in focusing marketing efforts on specific consumer groups.

What are the four common types of market segmentation mentioned in the script?

The four common types of market segmentation are demographic, geographic, behavioral, and psychographic segmentation. Each focuses on different aspects of consumer characteristics such as age, location, behavior, and values.

How does geographic segmentation differ from psychographic segmentation?

Geographic segmentation divides the market based on location, such as urban vs rural areas, while psychographic segmentation focuses on the lifestyle, values, and attitudes of consumers, including their preferences for products like halal-certified goods.

Why is it important to assess the potential size of a market segment?

Assessing the potential size of a market segment is important to determine whether it is worth targeting, how many consumers exist within the segment, and whether the business can successfully meet the needs of this segment while staying competitive.

What are some key factors businesses should consider when evaluating market potential?

Businesses should consider factors like the number of consumers in a segment, the growth potential, competition, compatibility with the company's brand, and whether the company’s competitive advantages align with the segment's needs.

How does positioning play a role in a global marketing strategy?

Positioning ensures that a product is remembered by consumers in a specific way, emphasizing its unique benefits or attributes, distinguishing it from competitors, and reinforcing its association with a particular lifestyle, value, or need in the consumer's mind.