2.

Segmentation, target
market and positioning

6. Develop Marketing
Mix for Each Target Segment
5. Develop Positioning
for Each Target Segment
4. Select Target
Segment(s)
3. Develop Measures
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
1. Identify Bases
for Segmenting the Market

Market
Positioning
Market
Targeting

Market Segmentation

Mass
Mass Marketing
Marketing

Same
Same product
product to
to all
all consumers
consumers
(no
(no segmentation)
segmentation)

Segment
Segment Marketing
Marketing

Different
Different products
products to
to one
one or
or more
more segments
segments
(some
(some segmentation)
segmentation)

Niche
Niche Marketing
Marketing

Different
Different products
products to
to subgroups
subgroups within
within segments
segments
(( more
more segmentation)
segmentation)

Micromarketing
Micromarketing

Products
Products to
to suit
suit the
the tastes
tastes of
of individuals
individuals or
or locations
locations
(complete
(complete segmentation)
segmentation)

Geographic
Nations, states,
regions or cities

Demographic
Age, gender,
family size and life cycle,
or income

Psychographic
Social class, lifestyle,
or personality

Behavioral
Occasions, benefits,
uses, or responses

Personal
Characteristics

Situational
Factors

Demographics

Bases
Bases
for
for Segmenting
Segmenting
Business
Business
Markets
Markets
Purchasing
Approaches

Operating
Characteristics

Industrial
Industrial Markets
Markets

Geographic
Geographic

Cultural
Cultural

Economic
Economic

Political/
Political/
Legal
Legal

Intermarket
Intermarket

Measurable
Measurable
Accessible
Accessible

Size, purchasing power, profiles

of segments can be measured.
Segments must be effectively
reached and served.

Substantial
Substantial

Segments must be large or

profitable enough to serve.

Differential
Differential

Segments must respond

differently to different marketing
mix elements & actions.

Actionable
Actionable

Must be able to attract and serve

the segments.

Segment Size and Growth

Analyze sales, growth rates and expected profitability.

Segment Structural Attractiveness

Consider effects of: Competitors, Availability of

Substitute Products and, the Power of Buyers &
Suppliers.

Company Objectives and Resources

Company skills & resources relative to the segment(s).

Look for Competitive Advantages.

Company
Company
Marketing
Marketing
Mix
Mix

Market
Market

A. Undifferentiated Marketing

Company
Company
Marketing
Marketing Mix
Mix11
Company
Company
Marketing
Marketing Mix
Mix22
Company
Company
Marketing
Marketing Mix
Mix33

Segment
Segment 11
Segment
Segment 22
Segment
Segment 33

B. Differentiated Marketing

Company
Company
Marketing
Marketing
Mix
Mix

Segment
Segment 11
Segment
Segment 22
Segment
Segment 33

C. Concentrated Marketing

Company
Resources
Product
Variability
Products Stage
in the Product Life Cycle
Market
Variability
Competitors
Marketing Strategies

Products Position - the place the

product occupies in consumers minds
relative to competing products; i.e.
Volvo positions on safety.

Marketers must:

Plan positions to give products the greatest

advantage
Develop marketing mixes to create planned
positions

Product
Product
Class
Class
Away
Away from
from
Competitors
Competitors

Product
Product
Attributes
Attributes

HH

Benefits
Benefits
Offered
Offered

GG
CC
AA

Against
Against aa
Competitor
Competitor

DD

EE

BB

Users
Users

FF

Usage
Usage
Occasions
Occasions

Step 1. Identifying a set of possible

competitive advantages: Competitive
Differentiation.

Step 2. Selecting the right

competitive advantage.

Step 3. Effectively communicating

and delivering the chosen position to
the market.

Product
Product

Service
Service

Areas
Areas for
for Competitive
Competitive
Differentiation
Differentiation

Personnel
Personnel

Image
Image

Important
Important

Profitable
Profitable

Affordable
Affordable

Preemptive
Preemptive

Criteria
for
Determining
Which
Differences
to
Promote

Distinctive
Distinctive

Superior
Superior

Communicable
Communicable