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Market segmentation,targeting and positioning In it’s original meaning market is a location where buyers and sellers meet

to exchange goods and services. >To an economist ,a market consist of all the buyers and sellers who transact over some goods or services. >To a marketer, it is the set of all actual and potential buyers of a product. Organi ations that sell to consumers and industrial markets recogni e that they cannot appeal to all buyers in the same way,because there are too numerous and too varied in their needs and preferences.!ach company has to identify the parts of the market that it can serve best."ut companies have not always practiced these philosophies. Market evolution passed 3 stages# $.mass-marketing % the company mass produces,mass distributes and mass promotes one product to all buyers.The benefit of mass marketing is that it should lead to the lowest cost and price and create the largest potential market. &.product variety % during this stage the company produces two or more products that have different features,styles,'uality and si es.(roducts were designed to offer variety to buyers and not appealing different market segments. ).target marketing % during this stage the company identifies market segments,selects one or more of them and develops products and marketing mixes for each segment.Todays companies are moving away from mass marketing and product variety market to target market,because it can better help sellers find their marketing opportunities, develop the right product for each target market and ad*ust their prices, distribution channels and advertising to reach target market efficiently.

&+Accessibility , the degree to which segment can be reached and served6e.g. people who do not hear )+Substantiality % the degree to which are large or profitable enough6e.g.launch perfumes for different social classes e.g.middle class. 9+Action ability % the degree to which affective programs can be designed for attracting and serving segments.

).(roducts can be position away from competitors ex.Feven,=p against Aoca,cola (ositioning % ce loc ocupa produsul in mintea consumatorului. "onsumer buying behavior <any different factors affect consumer buying behavior characteristics have to be careful in analy ing consumer behavior. Aonsumer buying behavior refers to the buying behavior of final consumers. Aonsumers make many buying decisions everyday. <ost large companies research consumer buying decisions in great details because they want to answer 'uestions about what consumers buy where they buy, how much they buy, why they buy. The central 'uestion for marketers is how do consumers respond to different marketing efforts the company might useG The company that really understands how consumers respond to different product features, prices and advertising has a great advantage over its competitor. That’s why companies have research the relationship between the marketing stimulus and consumer responses. *actors that a ect consumer behavior Aonsumers behavior is affected by 9 groups of factors # $%"ultural actors + culture is the set of basic values, perceptions, wants and behaviors that are learned from family and other social institutions. <arketers are always trying to identify cultural shifts in order to discover new products that might be wanted. Aultural factors include subcultures# nationality, ratio groups, religions and geographic regions. <any subcultures make up important market segments and marketers offer design products and marketers offer design products and marketing programs for each subculture. Aultural factors also include social class. Focial class is a relatively permanent division in a society whose members share similar values, interests and behaviors. Focial class is not determined by a single factor such as income, but it is measured as a combination of occupation, education, life experience, wealth and other variables. &%Social actors + a consumer’s behavior is influenced by the following social factors# $%,roups H a group consists from two or more people who intent to accomplish some common goals. - person’s behavior is influenced by many small groups,such as# $+ <embership groups H have direct influence on the consumer behavior and the person belongs to this group. .e.g.!<8!I &3B,&3/+ &+8eferent group H serves as direct points of comparison in forming a person’s attitudes and behavior.(eople or person do not belong to referent group. .e.g.8!I &3),&39+ )+-spiration groups % are the groups at which a person wishes to belong. .e.g.clasele sociale+ & *amily % family members can strongly influence buyer behavior. The family is the most important consumer buyer organi ation in society. <arketers are interested in the roles and influence of the house,wife and children on the purchase of different products and services. ). -oles and status - person belongs to many groups such as family, organi ations etc. The person’s position in each group define in terms of role and status. - role consists of the activities,people are expected to perform according to the person’s around them. !ach role carries a status that is the general esteem given to it by society. .ex.membri ai sindicatelor+ 3%.ersonal actors it includes# $.age and family life cycle stage &.!conomic situation ).Occupation 9.Iife style .persoane active si pasive+ B.(ersonality and self,concept '% .sychological actors it includes # $.Motivation H a reason is a need that is sufficient precissing the person to seek for the satisfaction of the need.(sychologists can develop theories of human motivation.Two of the most popular are the theories of Figmund 7raid and -braham <aslow .piramida nevoilor+ &%.erception % the process by which people select,organi e and interpret information to form a picture of the world. It is influenced by ) processes# a/Selective attention % is the tendency for people screen, out most of the information to which they are exposed,this means that marketers have to work especially hard to attract the consumer attention..billboards+ b/Selective distortion % describes the tendency of people to interpret information in a way that will support what they already believe.That means that marketers must try to understand the mind of consumers and how these will affect interpretations of advertising and sales information c/ Selective retention % means that consumers tend to retain information that supports the attitudes and believes. 3%0earning % describes changes in an individual’s behavior arising from despre cantinele -F!<+ '%Believes and Attitudes

Marketing Targeting strategies# $+ Undi erentiated %a firm may decide to ignore market segment differences and go after the whole market with one market offer.It focuses on what is common in the needs of consumers and designs a product and a marketing program that appeal to the most buyers.It relies on mass production,mass distribution and mass advertising.It provides post,economies.the narrow product line keeps down production and transportation cost.<ost modern marketers have strong doubts about this strategy because it is difficult to develop a product or brand that will satisfy all consumers. &+!i erentiated % using this strategy the company decides to target several market segments and designees different offers for each segment,by offering product and marketing variations,it hopes for higher sales and a strong opposition within each market segment.Typicaly this strategy creates total sales than but it also increases the costs of doing business because modifying a product to meet different market segment re'uirements, usually involves higher research and development costs and developing different marketing plans6 for different segments re'uires higher promotion,distribution,planing and forecasting costs. :the most profitable strategy6,competitive advantage6,very expensive; Target Marketing re'uires ) steps# )+"oncentrated , a specially appealing when company>s a+market segmentation , dividing a market into different resources are limited,instead of going after a small share of groups of buyers who may call for separate products and a large market,the company covers a large share of one or marketing mixes, the company identifies different ways to few sub,markets.niches+.Through this strategy the company segment market and develops profile of the resulting market achieves a stronger market position in the segments it segments. serves because of its greater reputation it a'uires.The b+market targeting % evaluating each segment’s company en*oys many operating economies because of attractiveness and selecting one or more of the market speciali ation in production,distribution and promotion.If the segment to cover. segment is chosen well,the firm can obtain a high rate of c+market positioning %setting the competitive positioning return on its investments.-t the same time this strategy for the product in different consumer segments. involves few risks# a+the particular market segment can There is no single way to segment a market.- marketer has become too small6 to try different segmentation variables along and in b+larger competitors may decide to enter the same segment. combination to find the best way to segment it’s markets. 7or these reasons many companies prefer to diversify in $+geographic variables % include several market segments.e.g.insulina,aparate region,city,si e,country,density and climate. auditive.-dv.?economisitor6?cunoscut pe &+demographic variables % include piata?.@isadv.?segmentul trebuie sa fie destul de mare ca sa age,gender,income,occupation,education,religion,race,family acopere cheltuielele? and family life cycle. )+ physiographic variables % include life style,personality and social class. Ahoosing <arket Targeting strategy a company should consider the following actors# $+ the -merican marketers divide modern society into following company#s resources.when are limited is recommended social classes# concentrated marketing strategy+. a+lower-lowers./,01+ % they are usually out of work and &+product variability.undifferentiated marketing strategy is they depend on public help or charity for their income,buy recommended for uniform goods such as vegetables,fruits or only primary goods. raw materials+.(roducts that vary in designs,colors,features b+upper lowers.>231+, are working but their living are more suited to differentiated marketing strategy. standarts are *ust above poverty.They perform unskilled )+the products stage in the li e cycle.when a firm work for very poor payment."uy only primary goods.clothes+. introduces a new product it is practical to launch only one c+working class .>2)&1 + , average rate workers that version,so undifferentiated or concentrated marketing depend on their salaries."uy primary goods4some strategies make that most sense6 in the maturity stage differentiated marketing strategy is recommended.+ d+middle class.>2)51+ % average paied consumers that 9+the marketing variability .if most buyers have the same have better living standarts.They buy products that are tastes,buy the same amounts and react the same way to popular to keep up with the trends."uy fashion clothes,have marketing efforts , undifferentiated marketing strategy is some savings,travell. appropriate.+ e+upper middles.>2$&1+, primarily concerned with career B+competitors marketing strategy.when competitors use and they include usually independent business persons and segmentation undifferentiated marketing strategy can not be corporate managers.They are the 'uality market for used, but when competitors are using goods,homes,clothes,cars and managers,very undifferentiated mk str.,a firm may obtain some competitive educated,influenced by brands,have investment funds+. advantages by using differentiated or concentrated f+lower uppers .>2&1+ % they have obtained high income marketing+. and wealth through their profesional abilities or Market positioning.Once a company has decided which business.They usually rise from middle class.They include segments of the market it will enter it must decide what the new riche who consume products and services that positions of wants to occupy in these segments. - product’s impress others. position is the way the product is defined by consumers on g+upper uppers.>$1+ % they are the social elite that have important atributes. The <arket (ositioning refers to the well known family backgrounds, they give large sums to place the product occupies in consumers minds in charity.They are an attractive market for anti'ues,homes and comparison with competing products. vacations..high incomes,very educated6 nu exteori ea a Aonsumers are over,load with information about products bogatia6ex.7amilia 8egala din 8omania+. and services. - product position is the set of perceptions, 9+Behavioristic variables include# impressions and feelings that consumers hold for the a+purchase occasion.regular or special+6 products. <arketers influence the product positioning when b+usage rate.light,medium and heavy user+ they plan their products competitive advantage and they c+loyalty status.non,light,medium,and strong user+:discount develop marketing mixes to create the planned positioning. cards; - company may use the following positioning strategies # d+attitude toward the product.positive,negative or $% It can position its products on specific product atributes indifferent+e.g. tobacco,fast food... such as 'uality. (erformance, good price.low+, safety,etc. e+readiness stage.a consumer may be &. (roduct can be position on the needs they feel or benefits unaware,aware,interested,desirous and intending to they offer..CashDEo+ buy+e.g.reclama de promovare6lapte#servicii turistice. ?the company do not specific anything about price 3. (roducts can be position for special occasions. ex.Ahristmas tree,wedding dress <arketing segmentation should have the following '. (roducts can be position for specific classes of users. re'uirements# !x.aparate auditive,pampers,insulina $+Measurability % the degree to which the si e and the (.(roducts can be position against a competitor .nu purchasing power of segments can be measured6 mentionea a numele concurentului+ manufacturing.

In the evaluation stage. The challenge for the marketing team is to identify which information sources are most influential in their target markets. "y involvement. If not.deseori consumatorul nu. the model is very useful when it comes to understanding any purchase that re'uires some thought and deliberation. c+ Fupplies and services % goods that do not enter the finished product at all Individual product decisions @eveloping a product involves defining the benefits that the product will offer. $+ Ouality is one of the marketer’s positioning tools for the 'uality tends for the ability of a product to perform it’s functions. If the need is strong and there is a product or service that meets the need close to hand. )+ "randing % .&. The sales force may need to stress the important attributes of the product. c+ Ftyle. (roduct &+ Industrial goods % those goods bought by individuals and organi ations for use in conducting a business.-F!<+ % short period of time An attitude describes a person’s constraint evolution feelings and tendencies toward an ob*ect or idea. symbol or design used to identify the goods or services of one producer from those of competitors.e. then a purchase decision is likely to be made there and may use manufacturer’s brand or private brand. the advantages compared with the competition6 and maybe even encourage LtrialM or LsamplingM of the product in the hope of securing the sale.+ !mergency goods % are purchased when the need is urgent (roduct life cycle (roduct life cycle is a concept that provides a way to trace the stages of a product’s acceptance. -ugmented level % This level offers additional consumer services and benefits such as# a+ -fter sale service b+ @elivery c+ Carranty d+ Aredit selling This level is optional.product line is a group of closely related product items.&+ Pon uniform goods % similar price but different &+ Erowth stage % in this stage sales typically grow at al increasing rate. 8esearch suggests that customers value and respect personal sources more than commercial sources . B+ Iabeling % The label is a part of any packaging. 3hy should a marketer need to understand the customer evaluation process2 The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. <arketing concept of the product and product classification &. The package may include# a+ The product’s immediate container b+ Fecondary package. d+ "rand name. we need a new sofa.when it may be too late for a business to influence the choiceJ+ The model implies that customers pass through all stages in every purchase. safe. labeling and packaging. Aore level % It addresses the 'uestion what is the buyer really buying. (rice. skipping information search and evaluation. It is common for customers to experience concerns 2 – Actual product level 1 – core level planners need to think about the product on ) levels# $. . <arketing several different products under the same brand. 7or example.$+ =niform % similar in 'uality but different in price b. &+ @urable goods % tangible goods that normally survive many uses. The 'uality can be analy ed from & points of view# a+ -ctual 'uality % includes the products durability.. . buying a soft drink. customers often skip or reverse some of the stages. Aonsumer goods include# a+ Aonvenience goods % consumer goods that the customer buys fre'uently.product item is a specific version of a product that can be designed as a distinct that is offered among an organi ation’s product. (rofits rise 'uickly on the growth stage and reach characteristics or brand identification their peak. using the product The usefulness and influence of these sources of information will vary by product and by customer. 9+ (ackaging % includes the activities of designing and producing the container or a product.e. neighbours etc N Aommercial sources# advertising6 salespeople6 retailers6 dealers6 packaging6 point. friends.purchase stage.. They are not brand. Industrial goods include# a+ <aterials and parts % Industrial goods that enter the manufacturer’s product completely.A believe is a discriptive thought that a person has about something. The product mix decisions are# $+ The length of the product mix refers to the total number of items the company produces &+ The depth of the product mix refers to how many versions are offered of each product in the line. may feel that an alternative would have been preferable. (roduct mix % includes all the products that an organi ation sells. radio. persons places. b+ (erceived 'uality % how well the product satisfies the needs of consumers. television. The perceived 'uality is measured in satisfaction.g.decision-making process 1ow do customers buy2 8esearch suggests that customers go through a five.of. choosing some breakfast cereals in the supermarket+ have very simple evaluation processes. in the process of selection and purchase $+ Introduction stage % The launch of the new product into a market place. $+ Pon durable goods % goods that are tangible and are normally consumed in one or a few uses. I am hungry. we mean the degree of perceived relevance and personal importance that accompanies the choice. services. you pass Ftarbucks and are attracted by the aroma of coffee and chocolate muffins+. Chere a purchase is Lhighly involvingM. low cost product+ or a branding product. b+ Aapital items % industrial goods that enter the finished product partially. Kowever.involvement decisions. organi ations and ideas. I have a headache+ or responds to a marketing stimulus . In these circumstances that customer will not repurchase immediately.+ Impulse goods % are purchased with little planning and search effort. These benefits are communicated and delivered by tangible product attributes such as# Ouality. e+ (ackaging ). 0ow involvement purchases . -n LarousedM customer then needs to decide how much information . It answers to the 'uestion whyG &.These believes may be based on real knowledge.<arketers are interested in the believes that people carry in their minds about specific products and brands .ost-purchase evaluation .a brand name owned by wholesalers or retailers )+ The company may use individual brand using different brands for different products. having bought a product. the durability of a product. . precision and reliability. -t this stage. This is summarised in the diagram below# after making a purchase decision.usually thrown away when the product is about to be used+ c+ Fhipping package.).making process in any purchase. products and services. Kowever. 3 – Augmented level This model is important for anyone making marketing decisions. sign. immediately and with a minimum of buying effort. Aonvenience goods include# a. Tema /# (roduct policy $.if any+ is re'uired. a student buying a favourite hamburger would recognise the need . The buying process starts with need recognition. benefits or satisfactions that are offered for displays N (ublic sources# newspapers.brand is a name.g. The product life cycle has 9 stages# b+ Fhopping goods % consumer goods that the customer. @istribution becomes very important during this d+ =nsought goods % goods that the consumer does stage and also and aggressive advertising is not know about or knows about but does not think recommended.$. Iabeling takes & parts# a+ persuasive labeling that focuses on promotional % in this case consumer information is secondary b+ Informational labeling % Is designed to help consumers make product selections and offers such information as# The instruction. brand. it is the *ob of the marketing team to persuade the potential customer that the product will satisfy his or her needs. b. &+ @esign % considers the appearance of the product but also creates products that are easy.the influence of Lword of mouthM+. )+ The product bread refers to how many product lines the organi ation offers. the marketer needs to provide a good deal of information about the positive conse'uences of buying. Fhopping goods can be# and production costs. They include# Installations and accessory e'uipment.g. (roduct line and mix decisions 9. . in more routine purchases. <any competitors enter the same market features. (roduct classifications# (roducts can be classified into ) groups according to the durability or tangibility. the buyer recognises a problem or need .brand consists of# a+ "rand name % part of a brand that can be vocali ed b+ "rand mark % part of a brand which can be recogni ed such as# color. but is likely to switch brands next time.hunger+ and go right to the purchase decision. Then after having made a purchase. 1igh-involvement purchases include those involving high expenditure or personal risk % for example buying a house.stage decision. a. the customer is likely to carry out extensive evaluation. and some large companies may start to ac'uire small c+ Fpecialty goods % goods that have uni'ue parts.e.opinion or faith. . This arises from a concept that is known as Lcognitive dissonanceM. . consumer organisations6 specialist maga ines N !xperiential sources# handling. b+ 7eatures. individual product decisions ). The customer. (roduct life cycle stages H$H . -ctual product level % It may have B characteristics# a+ Ouality level. The marketing costs in the introduction usually compares on such basis as# Ouality. term.masa. ac'uisition."ognitive !issonance The final stage is the post. advertising Ftyle and suitability. 1ow does the customer use the in ormation obtained2 -n important determinant of the extent of evaluation is whether the customer feels LinvolvedM in the product. examining.high education -F!<+ buyer behaviour . ease of use and repair. scaun+ )+ Fervices % activities. -ccording to the final users products can be# $+ Aonsumer goods % are goods bought by final consumers for personal consumption.-ttitudes are very difficult to change. stage are high because of intense distribution. These goods are normally placed next to checkout counters. c+ Trademark % part of a brand that is given legal protection. To manage the post. It forces the marketer to consider the whole buying process rather than *ust the purchase decision .+ Ftaple goods % that are purchased on a regular basis. then the process of information search begins. inexpensive to use and service and simple in to produce and distribute. construction of. In high. the customer should be encouraged that he or she has made the right decision.product is anything that can be offered to a market for attention. the customer must choose between the alternative brands. &+ .l vede+ that is necessary for storing and shipping the product (ackaging has the following functions# -+ Aontaining and protecting products "+ (romoting products A+ 7acilitating storage.customer can obtain information from several sources# N(ersonal sources# family. Kow to use a product. symbol. use or consumption that might satisfy a want or need. a car or making investments. It consists of the problem solving services or benefits the consumer obtains when he buys the product. sign. use and convenience @+ 7acilitating receiving and reducing the environmental damage. It includes physical ob*ects. lettering but that is not vocali ed. There are several branding strategies# $+ The company may decide to produce a generic product. design. components ingredients and other information. of buying. a.purchase evaluation of the decision.

(rices and profits continue to fall. This stage is normally the longest stage of the life cycle. drop in sales. It reduces all promotional costs . Keavy consumer promotion is re'uired to maintain the market share. The company has to decide when is the moment to delete the product from product line. 9+ @ecline stage is a long run .)+ <aturity stage is a period during which sales increase at a decreasing rate.