MARKETING STRATEGY

O.C. FERRELL MICHAEL D. HARTLINE

Market Segmentation, Target

Marketing, and Positioning

Market Segmentation Strategies (1 of 2)

Traditional Approaches to Market
Segmentation
Mass Marketing
Differentiated Marketing
Multisegment Approach
Market Concentration Approach

Niche Marketing
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Mass Marketing Strategy

From Exhibit 6.1 (1 of 4)

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Multisegment Strategy

From Exhibit 6.1 (2 of 4)

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Market Concentration Strategy

From Exhibit 6.1 (3 of 4)

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Niche Marketing Strategy

From Exhibit 6.1 (4 of 4)

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Discussion Question
Can you think of a product that could be
marketed effectively using a mass
marketing approach? If so, explain and
justify your answer. If not, what types of
changes would have to be made to the
product to make it appropriate for a mass
marketing approach?
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Multisegment Approach

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Market Segmentation Strategies (2 of 2)

Emerging Approaches to Segmentation
One-to-One Marketing
Mass Customization
Permission Marketing

Criteria for Successful Segmentation

Identifiable and Measurable

Substantial
Accessible
Responsive
Viable
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Discussion Question
Many consumers and consumer advocates
are critical of the one-to-one marketing
approach due to personal privacy concerns.
Marketers counter that one-to-one
marketing can lead to privacy abuses, but
that the benefits to both consumers and
marketers far outweigh the risks. Where do
you stand on this issue? Why?
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Bases for Segmenting

Consumer Markets
Behavioral Segmentation
Segments based on actual behavior or product usage

Demographic Segmentation
Segments based on demographic factors (e.g., gender,
age, income, education, etc.)

Psychographic Segmentation
Segments based on state-of-mind issues (e.g., motives,
attitudes, opinions, values, lifestyles, interests,
personality, etc.)

Geographic Segmentation
Segments based on geographic location
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Marketing Strategy in Action

Demographic segmentation
strategies, such as the one
utilized in this Virginia Slims
advertising campaign, are
common because their ease of
use and measurement.
What are the limitations of
demographic segmentation?
What can marketers do to
compensate for these
limitations?
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VALS

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Benefit Segmentation of
the Snack Food Market

Exhibit 6.4

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Discussion Question
What are some of the ethical and legal
issues involved in targeting sensitive groups
such as children and seniors?

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Bases for Segmenting

Business Markets

Type of Organization
Organizational Characteristics
Benefits Sought or Buying Processes
Personal and Psychological
Relationship Intensity

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Target Marketing Strategies

Five basic strategies for target market
selection:
(1) Single Segment Targeting
(2) Selective Targeting
(3) Mass Market Targeting
(4) Product Specialization
(5) Market Specialization
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Basic Target Marketing Strategies

Exhibit 6.6

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Differentiation and Positioning (1 of 2)

Relative perception
Process of creating favorable relative position:
(1) Identification of target market
(2) Determination of needs, wants, preferences and
benefits desired
(3) Examination of competitors characteristics and
positioning
(4) Comparison of product offerings with competitors
(5) Identification of unique position
(6) Development of a marketing program
(7) Continual reassessment
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Differentiation and Positioning (2 of 2)

Differentiation Strategies
Product Descriptors
Product features
Advantages
Benefits

Customer Support Services

Image

Positioning Strategies
Strengthen the Current Position
Repositioning
Reposition the Competition

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Using Product Descriptors

for Product Differentiation

Exhibit 6.7

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