MARKET SEGMATATION

This refers to the process of dividing a target market into

smaller, more precisely defined groups of consumers who have
common needs and expected to respond similarly to a marketing
action

TYPES OFMARKET SEGMANTATION

DEMOGRAPHIC SEGMANTATION
This refers to the division of the market basing on
age gender, level of income, occupation.

PHYCHOGRAPHIC SEGMENTATION
This refers to the division target customers basing on
lifestyle,interests personality, attitudes, opinions,

For example a fitness brand targeting health- conscious individuals

who value wellness

BEHAVIOURAL SEGMENTATION
This refers to the division of customers basing on customer
purchase history, loyalty, buying habits, usage rate.

For example A coffee shop targeting frequent customers who

value convenience

GEOGRAPHIC SEGMENTATION
 This refers to the division of customers basing on region, city,
climate, Language,and urban/rural

For example Electronic based industries is more based in urban

centers than rural areas

THE MARKET SEGMENTATION PROCESS

The market segmentation process refers to a systematic
approach to dividing a l The bigger market into smaller,
manageable groups of consumer with similar needs,
characteristics, or behaviour.

The process of market segmentation is as follow

Situational analysis (Define market)

The process of identifying the market size,

growth,competition, customer needs, and also defining the target
market and product offering determining the target characteristics

Data collection (Gather Information)

This involves carrying out surveys, customer interviews,

focus groups, and analyzing data to identify patterns and trends

Segmentation Criteria( choose Variables)

Thus involves selecting relevant segmentation variables

like age, income, location, considering demographic, behavioral,
geographic factors and ensuring that variables are measurable,
accessible and actionable

Analyse the data

 This involves designing graphs, charts to position the
target customers rise and fall of the product

Identify the market segmentation (divide the market)

Divide the market into distinct segments based on chosen

variables, identifying characteristics, needs and preferences

Positioning strategy(Differentiate)

Develop unique selling proposition to differentiate from

competitors, consider product, price, promotion and place
strategies.

Monitoring and Adjustment

Monitor segment dynamics and adjust segmentation strategy

as needed, track market trends, customer needs, and completion
activity and also refine targeting positioning strategy accordingly

ADVANTAGES OF MARKET SEGMENTATION

Targeted Marketing Efforts;

Focus on specific customer groups,

increasing effectiveness of marketing campaigns and reduces
wastes by avoiding non targeted audiences

Increased customer satisfaction;

This understands customer needs ,

preferences, behaviors and also develops product or services
tailored to specific segments needs
Improved product development

this helps to identify market gaps and

opportunities and creation of product or services meeting specific
segment needs

Enhance competitiveness

Differentiates from competitors by targeting specific segments

and also develops unique selling propositions

Increase brand loyalty

It helps in understanding customers needs, building

strong relationship also developing loyalty programs for targeted
segments

Improved pricing strategy

Pricing strategies are set basing on segment-specific

value perception and also optimizing price for maximum revenue

Reduced Marketing Costs

Market segmentation focuses on target audience reducing

waste and optimize market budget allocation

Better market research

Conduct targeted research , gathering valuable

insight and also inform product developmentand marketing
strategies

DISADVANTAGES OF MARKET SEGMENTATION

Over segmentation;

Creating too many segmentation led increased complexity,

higher marketing costs and reduced economies of scale

Under segmentation;

Failing to identify segments leading to Missed opportunities,

ineffective marketing efforts and reduced competitiveness

Limited resource;

Insufficient budget for marketing research and analysis,

limited personal and experts and also difficult in implementing
effective segmentation strategies

Difficulty in market segmentation

Challenges in gathering accurate data and also risk of incorrect

segmentation decisions

Segment Instability;

Changes in consumer behavior or market trends, shift in

segment characteristics and need for continuous monitoring and
adjustment

Limited market share;

forces on specific segments

WAYS OF OVER COMING THE CHALLENGES

Conduct thorough market research
 Analyze customer data carefully

identify relevant segmentation efforts

Prioritize segmentation efforts

Track customer behavior and preferences

Stay flexible and adaptable

Continuously monitor and adjust segmentation strategy

REQUIREMENTS FOR EFFECTIVE SEGMENTATION

Measurale;

The size, puschasing power, characteristics of the

market should be measurable

Accessible;

The segment should be effectively reached and

served

Substantial;

The segment should be large and profitable enough

to serve

Differentiable;

The segment should be distinguishable

Actionable;

Effective programs can be formulated for attracting and

serving the segments
 MARKET TERGETING
This refers to the process of selecting a specific group of consumers or business
to focus marketing efforts on

This is done to identify profitable customers, develop targeted marketing

strategies and also prioritize customers based on potential

I involves identifying and targeting a defined audience with tailored marketing

messages product and services

TYPES OF MARKET TARGETING

MASS MARKETING( Undifferentiated targeting)

This is a single marketing strategy for the entire market. No

differentiation, same message for all. it is widely reached but there is lack
professionalization and wasted resources

This approach assumes that every one has similar needs and preference

For example; Samsung's broad smartphone marketing , same message,same

product and same price for every one

DIFFERNTIATED TARGETING

This Involves targeting multiple segments with different messages

This approach recognizes that different groups have unique needs and preference

Concentrated Targeting

This involves focusing on a single specific segment. This approach allows for
in depth understanding the markets desire

For example ; Ugandan bakery Kakira sugar works target health-conscious

consumers with their products

Micro-Targeting
 This involves focusing on small specific groups within a larger segment . This
approach uses data to identify niche audiences

For example; Uganda cosmetics company , Movit products target young women
with there hair care products

THE MARKET TARGET PROCESS

Market research; This involves gathering data on customers needs,

preferences and behaviour .

This step helps business understand their target audiences

Market Analysis

This involves examining the data collected during research to identify

market trends, opportunities and challenges

Segmentation

This involves the dividing the market into groups based on

demographic ,needs or behaviour

Target market segmentation

This involves choosing a specific segment to specific segment to target.

Here Evaluate segment size, growth, consider target needs and preference,

Positioning

This defines the brands unique selling proposition and competitive

advantage. This step helps business develop a unique value proposition, create
brand identity

Marketing Mix Development*

Marketing mix development creates strategies for product, price, place, and promotion.
This step helps businesses to develop product meeting target audience needs, set

pricing strategies and also determine better communication skills

Example:A company develops a product line for environmentally conscious

consumers.
Target market implementation

Target market implementation executes marketing strategies focused

to the target market
This step helps the business to develop targeted messaging, chose effective channel
and also allocate budget
Evaluation and Adjustment
Evaluation and adjustment involves monitoring, performance
and adjusting strategies.
This step helps businesses to track key performance, gather customer
feed back and also refine targeting messages

ADVANTAGES OF MARKET TARGETING

Increased Efficiency:
Targeting a specific audience reduces waste and optimizes resource allocation.

Example: A fashion brand targets young women, focusing marketing efforts on social
media platforms popular among this demographic.

Improved Relevance:
Different messaging resonates with the target audience, boosting engagement.

Example: A tech company creates targeted ads for software developers, highlighting
features relevant to their work.
Enhanced Brand Loyalty:
Understanding customer needs fosters loyalty and retention.

Example: A coffee shop rewards loyal customers with personalized offers and
discounts.

Competitive Advantage:
Target marketing differentiates businesses from other competitors.

Example: A fitness studio targets busy professionals with convenient class schedules.

Cost-Effective:
Targeted marketing reduces unnecessary expenses as specific information is targeted
on to specific consumers

DISADVANTAGES OF MARKETTARGETING

Limited Market Share:

This involves targeting a specific audience may limit market share.

Example: A luxury car brand targeting high-income individuals may miss out on sales
from middle-income customers.

Over-Segmentation:
Targeting too many segments can dilute marketing efforts thus making target
marketing difficult.

Example: A fashion brand targeting multiple age groups, interests, and locations may
struggle to create effective messaging.

Missed Opportunities:
Targeting a specific audience may overlook potential customers.
Example: A tech company targeting only young professionals may miss sales from
older individuals.
Competition:
Target marketing can attract competitors to the same segment hence increasing
the competition the products to the consumers
Example: A company targeting fitness enthusiasts may attract competitors
offering similar products.

Resource Intensiveness
Target marketing requires significant resources which at times can be hard to
access like time and budget
Example: Creating targeted content, managing multiple social media channels.

Brand Reputation:
Target marketing can impact brand reputation if not executed carefully.

Example: Targeting the wrong audience or using insensitive messaging.

Ways to Control These Challenges

Conduct Thorough Market Research: Gather accurate data on target audience

Set Clear Objectives: Define target market, goals, and key performance indicators for
your business

Monitor Market Trends: Stay up-to-date with industry developments and adjust
targeting strategies.

Test and Refine Messaging: Ensure messaging resonates with target audience.

Ensure Brand Consistency: Maintain a strong brand identity across all marketing
channels.
 MARKETING POSITIONING
Marketing positioning refers to the process of establishing unique
image or identify for a product, service or brand in the minds of
target customers to differentiate it from competitors

TYPES OF MARKET POSITIONING

Product Positioning:
Product positioning involves creating a unique image or
identity for a product based on its features, quality, performance,
or design.

Example: Apple positions its i Phones as premium products with

advanced security features and sleek designs.

Brand Positioning
Brand positioning involves establishing a unique identity for
a brand, encompassing its values, personality, and reputation.This
helps to build brand loyalty and recognition and also creates
emotional connections with customers

Service Positioning
Service positioning involves differentiating a company's
services based on convenience, expertise, or customer experience.
This helps to creates perceived value for customers and
differentiates services from competitors

Image Positioning
Image positioning involves creating a unique image or
reputation for a company or brand.This creates emotional
connections with customers and also builds brand loyalty and
recognition

Example: Luxury car brand, Mercedes-Benz, positions itself as a

symbol of success and sophistication.

Benefit Positioning:
Benefit positioning involves highlighting the benefits or
solutions that a product or service provides to customers. This
creates perceived value for customers and differentiates products
from competitors
Example: Dove positions itself as a skincare brand that
provides moisturizing benefits.

User Positioning
User positioning involves positioning a product or service
based on the target audience or user.This Supports marketing
campaigns focused on specific demographics

Example: LEGO positions itself as a toy brand for creative children.

ADVANTAGES OF MARKET POSITIONING

Increased Brand Awareness:

Marketing helps create recognition and awareness of your
brand, products, or services.

Example: Coca-Cola's advertising campaigns have made its logo one

of the most recognizable globally.
Customer Retention:
Marketing helps maintain customer loyalty, encouraging
repeat business.

Example: Apple's loyalty program and regular software updates

retain customers.

Differentiation:
Market positioning helps differentiate a product or service from
competitors.

Example: Apple positions itself as a premium technology brand,

differentiating itself from budget-friendly options.

Targeted Marketing
Market positioning enables targeted marketing efforts,
increasing efficiency.
Example: Coca-Cola targets young adults with its "Share a Coke"
campaign.

Competitive Advantage:
Market positioning creates a competitive advantage, making it
difficult for competitors to replicate.
Example: Amazon's focus on customer convenience and fast
shipping creates a competitive advantage.

Improved Customer Loyalty:

Market positioning fosters customer loyalty by resonating with
target audience values.
Increased Revenue:
Effective market positioning leads to increased revenue and market
share.

DISADVANTAGES OF MARKET POSITIONING

High Costs:
Market positioning requires significant investment in research,
advertising, and branding.
Example: Launching a nationwide advertising campaign can be
costly.

Risk of Failure:
Market positioning strategies may not resonate with target
audience.
Example: New Coke's re branding failure
led to a return to the original formula.

Negative Feedback:
Market positioning can attract negative feedback or criticism.

Example: Pepsi's Kendall Jenner ad faced backlash for perceived

social injustice insensitivity.

Competition: Effective market positioning attracts competitors to

the same segment.

Example: Successful companies face increased competition.

Maintaining Consistency:
 Market positioning requires consistent messaging and
branding.

Example: Companies must ensure all marketing efforts align with

positioning.
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