MARKET RESEARCH AND SEGMENTATION (SLP)
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AckerS_MHM525_Case2.pptxTargeting in Marketing
Shaneya Acker
Dr. Eric Oestmann
MHM 525
Trident University International
March 29, 2019
Targeting in Marketing
For a company in any industry to be successful in the selling of its products or services including the health sector, the company or organization must
Segment its market
Target its best clients or customers
Position its offering in a way that will appeal best to the target customer or client
Any organization, company or business regardless of the industry it operates interested in successfully selling of its products or services including the health sector, the company or organization must segment its target market, target its best clients or customers and position its offering in a way that will appeal best to the target customer or client.
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Segmenting Market
Products and services cannot appeal to everybody
Dividing clients into groups that they share similar characteristics with e.g. elderly patients
Segmenting/ dividing customers into groups makes it easy for the identification of an effective approach to increases the chances of scoring a client or customer (Kubacki, Dietrich & Rundle-Thiele, 2017).
Segmenting a market refers to the dividing of clients into groups that they share similar characteristics with. For example, the elderly can be segmented to demographics segment. The dividing of customers into groups makes it easy for the identification of an effective approach to increases the chances of scoring a client or customer.
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Ways of segmenting markets
There are many ways of segmenting markets depending on the industry.
For the healthcare industry, there are three main ways of segmenting the market
Demographic-age, gender, race or ethnicity (Christia & Ard, 2016).
Psychographic-lifestyles, value or personality
Behavioural or trait-brand loyalty, luxury etc.
There are three main ways of segmenting the healthcare industry. It can either be according to demographics, psychographic or behavioural. In demographics target customers can be divided according to age, gender, race or even ethnicity. In Psychographic segmentation, target customers can be divided according to their value or personality or even lifestyle. In trait segmentation, target customers can be divided according to their personal preferences or habits.
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Demographic segmentation
Segmenting markets using demographics is the easiest form of segmentation.
In demographic segmentation potential clients or customers are divided in reference to demographics e.g. target markets might be divided according to age.
For example, a health institution that specializes in handling chronic diseases may target their services at elderly people (Vogenberg & Santilli, 2018).
Demographics segmentation is the easiest form of segmentation because most preference sand buyer characteristics are dictated a lot by demographics such as age and gender. An example of demographics segmentation is when a health institution that specializes in handling chronic diseases targets their services at elderly people.
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Psychographic segmentation
In this type of segmentation, potential clients are grouped according to their shared values, attitudes, lifestyles or even personality traits.
This type of segmentation is effective in the targeting of heterogeneous customers with the same product.
In the health sector patients who prefer certain procedures such as cosmetic surgeries can be segmented using the psychographic segmentation with the aim of having them take on more forms of cosmetic treatments (Serrat, 2017)
As earlier stated in the psychographic segmentation, potential clients are grouped according to their shared values, attitudes, lifestyles or even personality traits. It is important to note that psychographic segmentation is effective in the targeting of heterogeneous customers with the same product.
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Behavioural or trait segmentation
In trait segmentation, potential customers are grouped according to three main parameters
brand loyalty
usage frequency-
Occasion oriented
For example, In the health sector, there are patients who like getting spectacles from a particular brand. such clients can be targeted to push the sale of spectacles and other optician related devices.
In trait segmentation, target customers are divided according to three main parameters; brand loyalty, usage frequency and occasion oriented. An example of trait segmentation where the brand loyalty parameter is in play is the targeting of clients who like particular brand names when it comes to the purchase of spectacles. With such clients, the clients can be targeted to push the sale of spectacles and other optician related devices.
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Targeting
After the segmenting of customers, the next step is to come up with approaches of targeting customers or clients effectively.
In coming up with the best markets to target three things must be considered
The profitability of the segment.
The size of the segment as well as the potential growth of the segment.
The factors likely to affect the identified market segmentation
After the segmentation stage is done the next stage involves coming up with approaches to targeting customers or clients effectively. In order to come up with the best markets to target, there are things that must be considered; the profitability of the segment, the size of the segment as well as the potential growth of the segment and the factors likely to affect the identified market segmentation.
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Profitability of segment
It is important that a profitable segment is targeted- a segment that brings the most profit to an organization
Profitable segments are identified by the segments that have many potential customers
for example, since the number of children is high coming with approaches that target paediatrics customers might be very profitable for a health institution.
In marketing, it is best that a profitable segment is targeted. A profitable segment can be identified by the number of potential customers that are present in a segment; the higher the number of potential customers is in a segment, the higher the probability that the segment will be profitable. An example of a potentially profitable segment in health care centres is the paediatric wing. Since the number of children is high coming with approaches that target paediatrics customers might be very profitable for a health institution.
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Size and potential growth
When it comes to targeting an identified segment, it is important to establish whether the segment is big enough and whether the segment will grow in the future.
Segments with potential growth offer a better brighter future than segments that do not have the potential to grow.
For example, targeting paediatric customers offers a guarantee that there is repeat business for a health organization.
As mentioned in the previous slide, the size of a segment influences whether a segment is targeted. Other than the size of the other area that should be looked at when identifying a target segment is the potential growth of the segment. Segments with potential growth offer a better brighter future than segments that do not have the potential to grow.
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Factors likely to affect identified segment market
There are various factors that can affect how an identified and targeted market reacts to a product or service. The factors include
Political- policies and government regulations
Economic-state of the economy
Social or cultural-cultural beliefs and taboos
Technological- advanced services and products
There are four main factors that influence whether a target market will be chosen and the factors include political factors, economic factors, social factors and technological factors. Political factors refer to the policies and government regulations that may affect how an organization operates. Economic factors can either reduce or increase the buying powers of consumers. Social factors refer to the beliefs and practice that may cause potential customers to participate in a trade or not.
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A unique selling proposition
In the coming up with a unique selling proposition a position map is used- through this marketers know how to position their offering.
More gentle
Less effective
More effective
Less gentle
Laser surgery
spectacles
Contact lenses
In the coming up with a unique selling proposition a position map is used and through this marketers know how to position their offering. A look at the position map in the slide shows the selling propositions that can be adopted in the selling of spectacles, contacts or laser surgery. For example, one marketer can opt to sell laser surgery by claiming that it is effective despite it being less gentle on the human eye.
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Positioning proposal or offer
In the last stage, marketers identify the methods or strategies that they want to use to sell their offer to their target market.
Two main things happen in this stage
Coming up with a unique selling proposition
Identify the best marketing matrix that will yield the best results.
Position proposal is the lasts stage of target marketing. In this last stage, marketers identify the methods or strategies that they want to use to sell their offer to their target market. There are two main things that happen in this stage; the coming up with a unique selling proposition and the identifying of the best marketing matrix that will yield the best results.
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Marketing mix
In this process, the best approach on how to market a product or service is identified.
The marketing mix has seven main elements
Price-amount that customers should pay
Promotion
People
Physical environment
Process
Product
place
In the marketing mix part, the best approach on how to market a product or service is identified. The marketing matrix has seven main elements and all the elements look at the best way to market products or services. For example, the price element concentrates on the best price that a product or service should be changed to attract more customers.
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References
Christia, J., & Ard, A. (2016). The Influence of Demographic Characteristics on Service Quality Perceptions. Journal of Marketing Management, 4(2), 57-62.
Kubacki, K., Dietrich, T., & Rundle-Thiele, S. (2017). Segmentation in social marketing: why we should do it more often that we currently do. In Segmentation in Social Marketing (pp. 1-6). Springer, Singapore.
Serrat, O. (2017). Marketing in the public sector. In Knowledge Solutions (pp. 111-118). Springer, Singapore.
Vogenberg, F. R., & Santilli, J. (2018). Healthcare trends for 2018. American health & drug benefits, 11(1), 48.
