Segmentation Target Marketing and Positioning In one to two

Segmentation, Target Marketing and Positioning: In one to two pages describe your segmentation approach and target market(s) in detail. List and describe each segment. Evaluate each segment based on the four \"Criteria for Effective Segmentation\" in the reading for this week. Last, write a positioning statement for your product or service. Provide one to two pages.

Product: Nike Fuelband

CRITERIA FOR EFFECTIVEE SEGGMENTATION (ISBN 978-0-07-802878-6) CHAPTER 7 PG. 162-163

1. Is the segment of sufficient size to warrent investing in a unique value creating strategy for that segment as a target market? Ultimatley, there is no popint doing market segmentation unless a positive return on investment is expected. SIze of a segmnt doesn\'t necessarily mean number of customers when Bombardier markets its small Learjets, it knowas the number of potential buyers is limited

2. Is the segiment readily identifiable and can it be measured? Effective segmentation relies on the marketing managers\' ability to isolate members of the submarket to create a unique appeal. Segmentation most often requires data and if secondary data on the markets of interst aren\'t available or if primary data can\'t be easily collected, it may not be possible to do segmentation.

3.Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product? For segmentation to work propery, it must allow for the creation and execution of different marketing strategies to the different submarkets identified. Segments should be expected to respond differently to different marketing strategies and programs.

4. Can the segment be reached ( both in terms of communication and physical product) in order to deliver the value of the product and subsequently can it be effectively and efficiently managed? Barriers to reaching a segment might include language, physical distance, or as in the case of some developing markets, transortation, technology, and infrastructure challenges. Firms have to be able to sustain their management of a target segment over time.

Solution

geodemographic segmentation: hybrid form of segmentation that considers both geographic and demographic factors behavioral segmentation Divides customers into groups according to similarities in benefits sought or product usage patterns Business market Segmentation variables: purchasing criteria,policies,buyer seller similarity, risks Criteria for effective market segmentation Is the segment of sufficient size to warrant investing in a unique value creating strategy for that segment as a target market? If a segment is small in size then the cost of marketing activities cannot be justified. The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment Is the segiment readily identifiable and can it be measured The size, profile and other relevant characteristics of the segment must be measurable and obtainable in terms of data. It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organisation with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behaviour (frequency, volume, product groups, mode of payment etc) Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product? The market segments have to be that diverse that they show different reactions to different marketing mixes If not then there would have been no use to break them up in segments. Can the segment be reached ( both in terms of communication and physical product) in order to deliver the value of the product and subsequently can it be effectively and efficiently managed? The segment has to be accessible and servable for the organisation. That means, the customer segments may be decided considering that they can be accessed through various target-group specific advertising media such as magazines or websites the target audience likes to use. It has to be possible to approach each segment with a particular marketing programme and to draw advantages from that. The segments that a company wishes to pursue must be actionable in the sense that there should be sufficient finance, personnel and capability to take them all. Hence, depending upon the reach of the company, the segments must be selected. Target marketing product-focused marketing : Market as between a seller and a buyer,on one extreme there is a seller’s market, and on the other extreme there is a buyer’s market. In a seller’s market, if we want the product, we have to go to [the sellers]. That gives them a lot of power in that exchange. Under those circumstances, people tend to do what is called product-focused marketing customer-focused marketing The exchange between the buyers and sellers as more competition comes in [and] as there are other substitutes, buyers then have more choice. In that case, when the marketer wants we to buy from them rather than from the competition, they have to start focusing on what we want. And so then it becomes a customer-focused market Steps for target analyse market segments devlop profiles of each potential target market Select a target market approach Positioning: Communication of one or more sources of value to customers in a way that the customer can easily make the connection between his oor her needs and wants and what the product has to offer. First, it elevates Nike’s brand value and perception in the minds of consumers. This idea of life as a sport creates a unique brand association because it essentially redefines the meaning of sports, and in turn serves as a key differentiator for the Nike brand. Second, it establishes a competitive advantage in the minds of customers, particularly because it embodies the timeless value of life which other brands within the sportswear and equipment industry are yet to do Third, this positioning widens Nike’s target market Ultimately, marketing the FuelBand using this idea of life as a sport helps convey Nike’s unique value proposition.