PRINCIPLES OF MARKETING – 4TH QUARTER

UNIT 4 - Dividing the market and grouping individuals into

distinct groups based on their common
LESSON 4.1 MARKET TARGETING
characteristics, traits, and interests.
“You cannot talk to everyone about business, no
TARGETING
matter how much you want to.”
- Assessing which segments provide most benefit or
“Social interactions are infinite, but time and
value.
resources are finite.”
- Evaluating the potential and commercial
“Trying to sell your product or service to everybody attractiveness of each segment.
will cast your net too wide and lead to wasted
POSITIONING
resources and overexertion.”
- Developing a tailored message for the segment
“Choosing the right customer for their business is
selected.
essential to marketing success.”
- Setting the brand apart from those of competitors.
VAGUE AND GENERAL MESSAGE - Encouraging the target market to purchase.

- Will not resonate with an audience.

DIRECT AND TARGETED COMMUNICATION

- More efficient and effective.

TARGET MARKET

- A specific group, group of people, or sectors that a

business wants to serve.
MARKET TARGETING STRATEGIES
TARGET MARKETING
“A company's brand messaging can differ depending
- The process of determining the target market. on the number and kind of market audience.”

DEFINITION APPROACHES IN TARGET MARKETING

 Determining the ideal customer.  Mass Marketing

 Identifying the right target audience.  Differential Marketing
o Does not mean to exclude all other market  Niche Marketing
groups.  Micromarketing
 Narrowing the market scope to a manageable
MASS MARKETING
group to establish and build quality and strong
customer relationships. - Undifferentiated marketing.
- designed to communicate to a vast audience.
IMPORTANCE
DIFFERENTIATED MARKETING
 To identify the most profitable target audience or
target market. - multi-segment marketing.
 To customize their market offerings and deliver - assists in increasing the sales and market share for
customer satisfaction. each category that it targets.
 To cater to underserved customers.
 To tap into a new market, attract new customers,
and make a company successful. NICHE MARKETING

- concentrated marketing
- focused on one or a few highly defined and
specific sectors of the customer base.
MARKET TARGETING PROCESS

SEGMENTATION
 PRINCIPLES OF MARKETING – 4TH QUARTER
MICROMARKETING ___ 2. Targeting does not improve marketing
strategies and audience experiences.
- communicate and build relationships with a
specific set of customers (local marketing and ___ 3. Differentiated marketing is designed to
individual marketing) communicate to a selected audience.

___ 4. Individual marketing is a strategy in which

businesses provide consumers with a product tailored
to their personal needs.

___ 5. Segmentation is dividing individuals into

distinct groups based on their common characteristics,
traits, and interests.

KEEP IN MIND

 Market targeting is the process of identifying the

most profitable target audience or target market.
 Businesses use market targeting to narrow their
marketing scope to a manageable group of people
to establish and build quality and strong customer
relationships.
 Businesses identify their target audience using the
STP model. It stands for segmentation, targeting,
and positioning.
 There are different market targeting approaches
according to the intended scope, and these are
mass marketing, differentiated marketing, niche
marketing, and micromarketing.
 Micromarketing further subcategorizes into two:
individual and local marketing.

UNIT 4
LESSON 4.2 MARKET SEGMENTATION
TRY THIS
“Products and experiences are customized to fit the
(True or False)
needs and preferences of the target market.”
___ 1. Market targeting is a method of choosing the
MARKET SEGMENTATION
target market from the whole market.
 PRINCIPLES OF MARKETING – 4TH QUARTER
- the process of dividing the market and clustering
individuals into distinct groups to define the
possible target markets.
- allows businesses to target the sector or sectors
most likely to become pleased customers.
- reduces risks by evaluating the right marketing
mix for the target market.
- Segmentation is an extension of market research.
It seeks to identify patterns of similarity among
client preferences.
COMMON BASES FOR SEGMENTATION
 Descriptive
 Behavioral
 Benefits
DESCRIPTIVE
 demographic conditions
o age, gender, religion, income, family size
 geographic conditions
o nation, region, climate, population
 geo-demographic
o combination of geographic and
demographic factors
Segmentation by Family
- When selling things such as diapers and cereals,
companies often make advertising that appeal to a
conventional.
Segmentation by Gender
- Advertisements and market tactics are often
gender-specific.
- For example, businesses may emphasize women
while developing advertisements for a lipstick
brand or other beauty items.
Segmentation by Location
- This information will impact your marketing
approach if your product is limited to a particular
location.
- For example, while creating advertisements, you
may utilize a language unique to that setting.
Segmentation by Seasons
- Certain items are only available during certain
seasons, such as winter jackets and other heat-
generating apparel. On the other hand, beach
attire is limited to the summer season and regions
with beaches.
BEHAVIORAL
- include elements directly connected to consumer
purchase
o brand loyalty
o need to replace
o willingness to buy at a specific moment
- more challenging to measure
- strong drivers of consumer purchases
BENEFITS
- finding the critical benefit that consumers want
- based on the notion that market categories exist
because customers want distinct advantages from
products
“Some segmentation bases may not be functional or
relevant to the purchasing behavior or preferences of
customers.”
MARKET SEGMENT
- people with similar choices, interests, and
preferences.
- typically responds to a certain set of marketing
mix in the same way.
CHARACTERISTICS OF EFFECTIVE SEGMENTATION
 Measurable
- characterized by a specific measure in terms of
size, purchasing power, and profiles.
 Accessible
- can be reached and served effectively.
 Substantial
- large enough to be profitable and worth pursuing.
 Differentiable
- can be distinguished from other groups in terms
of how it responds to different marketing mix
programs.
 Actionable or Operational
- useful in identifying and designing an effective
marketing mix program.
BENEFITS OF MARKET SEGMENTATION
 Customer Relations
- demonstrates to your consumers that you
understand their key concerns and solutions.
 Increased Chances of Success
- tailoring advertisements increases the chances of
interacting with customers or converting a lead.
 Identifying New Marketing Possibilities
 PRINCIPLES OF MARKETING – 4TH QUARTER

4. People who can afford to pay 250 pesos for
ride-sharing apps.

5. Female customers for perfume products.


- new prospects can arise from evaluating the

target customers’ preferences.
 Providing Focus
- allows for prediction of market prices and foresee
trends.
 Product Development
- designing new items or features based on needs
and preferences of the target market.
 Profit Boosting
- cost-efficient, and increases competitiveness and
profitability.

KEEP IN MIND

 Market segmentation allows businesses to target

only the most likely to become pleased customers
or passionate users of products.
 It aids the company in identifying their target
market.
 Segmenting allows businesses to be more efficient
with their time, money, and other resources.
 A market segment contains people with similar
choices, interests, and preferences. They typically
think along the same lines and choose similar
things. They have a relatively homogeneous
response to a specific marketing mix program.
 Businesses evaluate segments according to
different bases. (Descriptive, Behavioral, Benefits)
 Effective segmentation has the following
characteristics: measurable, accessible,
substantial, differentiable, actionable or
operational (Kotler, Armstrong, and Opresnik UNIT 4
2017). LESSON 4.3 MARKET positioning

“These titles (“most powerful cleanser in the market”

TRY THIS “the most trusted bank”) are related to how
customers define or perceive these products and
(Identify the basis used to segment the market.) brands. Companies reinforce these perceptions in
various ways.
1. People aged 20 to 60 years old.
 “Regardless of the strategy, marketers aim to
2. People living in the urban area. influence the consumers' perceptions of their brands
 and strengthen its position in the market.”
3. People who look for whitening their teeth.
 PRINCIPLES OF MARKETING – 4TH QUARTER
“Consumers are offered endless alternatives for every - known as customer benefits.
product they need.” - emphasizing on product quality longevity,
dependability, reliability, style, etc.
MARKET POSITIONING
 Pricing
- emphasizing how much will be paid for the
quality.
 Use or Application
- expanding to a new market
- altering the intention of the brand
 Product Category
- putting two comparable goods in the same
- to create a mental image of a brand or product in product class, resulting in a larger client base
customers' minds  Cultural Symbol
- to design a marketing mix that solidifies the - locating something relevant to people that rivals
position that the brand wants to take. have not utilized.
 Competitors
- using rivals as a frame of reference to differentiate
BRAND a brand.
- created in the minds of the customers. STEPS IN MARKET POSITIONING
- based on customer’s perception and experience.
1. Understand your target audience thoroughly.
DIFFERENTIATION 2. Determine your brand’s characteristics.
- developing customized products that provide a 3. Offer a unique selling proposition.
competitive edge in a specific market sector. 4. Evaluate the competition.
5. Determine a method for brand promotion.
COMPETITIVE ADVANTAGE 6. Maintain the brand’s position.
- Differentiation gained when a business: MARKET AND BRAND REPOSITIONING
o Identifies its target market.
o Understands its needs and preferences. REPOSITIONING
o Makes an offering. - modifying a target market's knowledge or
perception of a product or service.
PRODUCT POSITION
- essential for overcoming a negative reputation or
- the way consumers define and perceive the reacting to complaints.
attributes of the product.
MARKET REPOSITIONING
- telling them what the product is and what is not.
- entails a modification in the overall messaging of
the brand.
Changes in:
o product price
MARKET POSITIONING
o marketing strategy
- Positioning is creating a marketing mix that o target audience
positions a product in a distinctive position in the o customer engagement
targeted categories to attract potential o color scheme
purchasers. o logo design
o tagline
VALUE PROPOSITION

- the full position of a product in the market REBRANDING

MARKET POSITIONING STRATEGIES - altering the identification of a company.

- changing most or all of the brand identification
 Product Attributes aspects.
 PRINCIPLES OF MARKETING – 4TH QUARTER
Changes in: ___ 1. Market positioning is the capacity to affect
o name customer perception of a brand or product compared
o symbol to competitors.
o colors
___ 2. In marketing, repositioning refers to developing
o type font
specialized goods that give a competitive advantage in
o slogan
a particular market segment.
BRAND REPOSITIONING ___ 3. The process of modifying a target market's
- focuses on modifying the associations that knowledge or perception of a product or service is
customers have with the brand and, in some referred to as "rebranding.”
instances, competitor brands. ___4. Repositioning frequently entails a modification
REASONS FOR REPOSITIONING in the overall messaging of the brand.

 Reaching a new audience. ___ 5. A strong positioning entices a potential

 Changing a product or service. customer to learn more about your product or service.
 Competing with other companies.
 Declining sales.

KEEP IN MIND

 Building profitable customer relationships requires

the company to differentiate and position its
brand in the market and against the competitors.
In positioning their brands, businesses want to tell
the audience that “this is me,” or “this is not me.”
 A competitive advantage is gained once the
company identifies that target market,
understands its needs and preferences, and makes
an offering. This offering gives way to product
positioning, or the way consumers define and
perceive the product or service.
 Market positioning refers to creating a marketing
mix that positions a product in a distinctive
position in the targeted categories to attract
potential purchasers. Businesses can employ one
or a combination of marketing positioning
strategies.
 A company can decide to modify a target market's
knowledge or perception of a product or service
through repositioning.
 Brand repositioning typically implies a shift in the
brand’s promise and personality.
 On the other hand, rebranding is the process of
altering the identification aspects, such as the
name, symbol, colors, type font, and slogan.

TRY THIS

(True or False)