How to use Market Segmentation to Launch your Product | Professor Ken shares market segmentation

Summary

This video discusses the concept of market segmentation, emphasizing the need to identify and target specific groups within a larger market. It explains how to segment consumers based on their preferences, such as differentiating between types of businesses (e.g., e-commerce vs. restaurants) and further refining those categories (e.g., fast food vs. fine dining). The video highlights the importance of positioning, which is how consumers perceive a brand, using examples like Mercedes-Benz and Hyundai. Finally, it stresses the necessity of delivering on brand promises to maintain consumer trust and effective market positioning.

Takeaways

• 😀 Market segmentation is essential for identifying specific customer groups within a broader audience.
• 🤔 Understanding customer likes and dislikes helps refine market segments effectively.
• 🔍 Businesses should drill down into sub-segments to tailor their marketing strategies.
• 🏷️ Targeting niche markets allows for more focused and successful marketing efforts.
• 🌍 Evaluating market segments involves considering demographics and geographical factors.
• 🧠 Positioning refers to how consumers perceive a brand or product in their minds.
• 🚗 Examples of positioning include luxury brands like Mercedes-Benz vs. economical brands like Hyundai.
• 🍽️ Restaurants can have unique positioning based on pricing and service style (e.g., Benihana vs. Wendy's).
• ✅ Consistency in delivering brand promises is crucial for maintaining positive consumer perception.
• 🔗 Effective positioning is closely linked to understanding and addressing specific market segments.

Q & A

What is market segmentation?

Market segmentation is the process of dividing a broad target market into smaller, more defined segments based on shared characteristics, likes, or dislikes.

Why is it important to segment a market?

Segmentation is important because it allows businesses to focus on specific groups of consumers, improving their chances of success by targeting those most likely to respond positively.

How can you segment a market?

You can segment a market by understanding the likes and dislikes of potential customers and categorizing them into distinct groups, such as preferences for different types of businesses or products.

What is the significance of understanding consumer positioning?

Consumer positioning is crucial as it defines how consumers perceive a brand or product in their minds, which influences their purchasing decisions.

Can you give examples of positioning in the automotive industry?

Sure! Mercedes-Benz is positioned as a luxury car brand, while Hyundai is positioned as an economical car brand. These perceptions influence consumer expectations and choices.

What does it mean to deliver the promise you make?

Delivering the promise means consistently meeting consumer expectations based on how a brand has positioned itself. Failing to do so can lead to a negative perception and loss of trust.

How does segmentation relate to positioning?

Segmentation helps identify distinct groups within a market, while positioning defines how a brand is perceived by those segments. Together, they guide marketing strategies and consumer engagement.

What are the potential consequences of failing to understand market segmentation?

Failing to understand market segmentation can lead to ineffective marketing strategies, wasted resources, and the inability to effectively reach and engage the intended audience.

What factors should be considered when evaluating market segments?

Factors to consider include the size of the segment, the potential for engagement, the ability to reach the segment effectively, and how well the segment aligns with the business's goals.

What example is given to illustrate positioning in the restaurant industry?

In the restaurant industry, Benihana is positioned as a premium dining experience that offers a unique service, while Wendy's is positioned as a fast-food option. These positions help consumers understand what to expect.