Segmentation, Targeting, and

Positioning: Building the

Right Relationships with the
Right Customers
Chapter 8
 Objectives
• Be able to define the three steps of
target marketing: market
segmentation, target marketing, and
market positioning.
• Understand the major bases for
segmenting consumer and business
markets.
8-2
 Objectives
• Know how companies identify
attractive market segments and how
they choose a target marketing
strategy.
• Comprehend how companies
position their products for
maximum competitive advantage.
8-3
 Case Study
Procter & Gamble
• Sells multiple brands • Has also identified
within the same different niches within
certain segments
product category for a
• Product modifications
variety of products are useful: Tide offers
• Brands feature a seven different product
different mix of formulations to serve
benefits and appeal to different niches’ needs
different segments
8-4
 Definition
• Market Segmentation:
 Dividing a market into distinct groups
with distinct needs, characteristics, or
behavior who might require separate
products or marketing mixes.

8-5
 Market Segmentation
Topics • Geographical segmentation
 Marketing mixes are
customized geographically
• Segmenting Consumer
• Demographic segmentation
Markets
 Most popular segmentation
• Segmenting Business  Demographics are closely related
Markets to needs, wants and usage rates
• Segmenting International • Psychographic segmentation
Markets  Lifestyle, social class, and
personality-based segmentation
• Requirements for Effective
• Behavioral segmentation
Segmentation  Typically done first

8-6
Market Segmentation

Geographic Segmentation
Variables
• World Region • Neighborhood
or Country
• City or
• U.S. region
Metro Size
• State
• Density
• City
• Climate
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 Market Segmentation

Demographic Segmentation Variables

• Age • Occupation
• Gender • Education
• Family size • Religion
• Family life cycle • Race
• Income • Generation
• Nationality
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 Segmentasi Unilever

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8 - 11
motorpoint.com.au marketmobil.com

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Segmen : Premium

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Family Size

8 - 14
Family Size

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8 - 17
Yang ini ?

8 - 18
 Market Segmentation

Behavioral Segmentation
Variables
• Occasions • User Rates
• Benefits • Loyalty Status
• User Status • Readiness Stage

• Attitude Toward the Product

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 Market Segmentation
Topics • Demographic segmentation
 Industry, company size, location
• Segmenting Consumer • Operating variables
Markets  Technology, usage status,
• Segmenting Business customer capabilities
Markets • Purchasing approaches
• Segmenting International • Situational factors
Markets  Urgency, specific application, size
of order
• Requirements for Effective • Personal characteristics
Segmentation  Buyer-seller similarity, attitudes
toward risk, loyalty

8 - 22
 Market Segmentation
Topics • Geographic segmentation
 Location or region
• Segmenting Consumer
• Economic factors
Markets
 Population income or level of
• Segmenting Business economic development
Markets • Political and legal factors
• Segmenting International  Type / stability of government,
monetary regulations, amount of
Markets bureaucracy, etc.
• Requirements for Effective • Cultural factors
Segmentation  Language, religion, values,
attitudes, customs, behavioral
patterns

8 - 23
 Market Segmentation
Topics • Measurable
 Size, purchasing power, and
• Segmenting Consumer profile of segment
Markets • Accessible
• Segmenting Business  Can be reached and served
Markets • Substantial
 Large and profitable enough to
• Segmenting International serve
Markets
• Differentiable
• Requirements for Effective  Respond differently
Segmentation • Actionable
 Effective programs can be
developed
8 - 24
 Target Marketing
• Evaluating Market Segments
 Segment size and growth
 Segment structural attractiveness
 Level of competition
 Substitute products
 Power of buyers
 Powerful suppliers
 Company objectives and resources
8 - 25
 Target Marketing
• Target Marketing Strategies
 Undifferentiated (mass) marketing
 Differentiated (segmented) marketing
 Concentrated (niche) marketing
 Micromarketing (local or individual)
marketing

8 - 26
 Target Marketing
• Choosing a Target-Marketing
Strategy Requires Consideration of:
 Company resources
 The degree of product variability
 Product’s life-cycle stage
 Market variability
 Competitors’ marketing strategies

8 - 27
 Target Marketing
• Socially Responsible Targeting
 Some segments are at special risk:
 Children
 Inner-city minority consumers
 Internet shoppers

 Controversy occurs when the methods

used are questionable.
8 - 28
 Positioning
• Positioning:
 The place the product occupies in
consumers’ minds relative to competing
products.
 Typically defined by consumers on the
basis of important attributes.

8 - 29
 Positioning
• Choosing a Positioning Strategy:
 Identifying possible competitive advantages
 Products, services, channels, people or image can
be sources of differentiation.
 Choosing the right competitive advantage
 How many differences to promote?
– Unique selling proposition
– Positioning errors to avoid
 Which differences to promote?

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 Positioning

Criteria for
Meaningful Differences
• Important • Distinctive
• Superior • Communicable
• Preemptive • Affordable
• Profitable

8 - 31
 Positioning
• Choosing a Positioning Strategy:
 Selecting an overall positioning strategy
 More for More Value Proposition
 More for the Same Value Proposition
 The Same for Less Value Proposition
 Less for Much Less Value Proposition
 More for Less Value Proposition

8 - 32
 Positioning
• Choosing a Positioning Strategy:
 Developing a positioning statement
Positioning statements summarize the
company or brand positioning
EXAMPLE: To (target segment and need)
our (brand) is (concept) that (point-of-
difference).
 Communicating the chosen position
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