Lecture - Segmenting a Market
January 21, 2019Market Segmentation - a way of analysing a market by categorising their specific characteristics.
Specific characteristics can include:
- Demographics - describe population in terms of personal characteristics e.g. age/gender/income/religion/lifestyle
- Psychographics - studies of consumers based on social and psychological characteristics e.g. attitudes/interests/opinions
- Geographic - statistics about where people live
- Behaviouristic/usage - statistics about consumers based on their knowledge, attitude, use or response to a product
- Geodemographic - e.g. residential store vs campus store
- Situation - e.g. season
Purchase occasion - identifies instance where consumer might use a product
Product benefit - identifies benefits that consumers desire in fashion product or service
Usage level and commitment - how often a product is used and loyalty to purchasing it
Geodemographic segmentation - hybrid segmentation: You are Where you Live (financial needs, tastes, preferences, lifestyles and consumption habits)
Targeting
Marketers evaluate each segment and decide upon which group of customers they will invest marketing sources.
- Selected groups are known as target markets
- How is technology making it easier for fashion firms to target potential customers?
Brand Positioning
Brand positioning - conceptual place where brand sits in consumer's mind - the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximise consumer relevancy and competitive distinctiveness, in maximising brand value.
When doing research to inform a brand positioning project, you must be able to answer:
- What does the brand community currently believe about or value in the brand?
- What might the brand believe or value about the brand in the future?
- What does the organisation currently claim about the brand?
- What would the organisation like the brand to become down the road?
How do you want to be seen in the marketplace?
- Product differentiation
- Service differentiation
- Personnel differentiation
Market Mapping
Market maps illustrate the range of 'positions' that a product can take in a market based on two dimensions that are important to consumers. For example:
- low/high price
- low/high quality
- low/high volume
- necessity/luxury
- light/heavy
- simple/complex
- unhealthy/healthy
- low-tech/high-tech
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