Marketing Communications

FURTHER READING 145

Summary

Th e segmenting–targeting–positioning process is one of the core elements of the strategic

marketing plan. Market segmentation is the process of dividing consumers into homogeneous

segment profi les. Th is can be done on the basis of one characteristic of potential consumers,

or multiple characteristics can be combined. Segmentation criteria can be behavioural

(such as buying occasion, loyalty status, usage rate, buyer readiness or benefi t sought) or

general (such as demographics and psychographics – lifestyle, personality, etc.). Market seg-

ments have to be measurable, substantial, attainable, diff erent and large enough. Th e next

stage in the process is to target one or more of these customer groups. Marketing commu-

nications can concentrate on one segment, specialise selectively, specialise in specifi c markets

or products, or fully cover the market. Marketers have to defi ne a unique position for their

products in the mind of the consumer, based on product attributes or benefi ts, price/quality,

use or application, product class, product users, competitors or cultural symbols. Developing,

monitoring and adapting an appropriate position for a brand, a product or a company is a

crucial prerequisite for eff ective marketing communications.

REVIEW QUESTIONS

1. What are the stages in the segmenting–targeting–positioning process, and what is the
   relevance of this process for marketing communications?


2. On the basis of what criteria can markets be segmented? How can market segmentation
   influence the communications mix?


3. What are segment profiles, and what are the requirements for effective segmentation?


4. Discuss the most important targeting strategies and the selection of target groups.


5. What positioning strategies can a company develop, and what are the consequences for
   communications strategies?


6. What are the stages in the development of a positioning strategy?


7. How can a product be repositioned?

Further reading

Brennan, B. (2009), Why She Buys: Th e New Strategy for Reaching the World’s Most Powerful

Consumers. New York: Crown Business.

Dibb, S. and Simkin, L. (2007), Th e Market Segmentation Workbook : Making it happen.

London: Routledge.

Trout, J. (2008), Diff erentiate or Die: Survival in Our Era of Killer Competition , 2nd edition.

New York: Wiley.

Tungate, M. (2008), Branded Male: Marketing to Men. London: Kogan Page.

Van den Bergh, J. and Behrer, M. (2013), How Cool Brands Stay Hot: Branding to Generation

Y , 2nd edition. London: Kogan Page.

Weinstein, A. (2004), Handbook of Market Segmentation. London: Haworth Press.

M04_PELS3221_05_SE_C04.indd 145M04_PELS3221_05_SE_C04.indd 145 6/5/13 3:00 PM6/5/13 3:00 PM