SEGMENTING/TARGET

MARKETING AND POSITIONING

 Steps in Segmentation,
Targeting, and Positioning

6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s) Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases
for Segmenting the Market
 Market Segmentation in
Consumer and Business
Markets
• Segmenting Consumer Markets
– Behavioral segmentation
– Demographic segmentation
– Geographic segmentation
– Psychographic segmentation
 Step 1. Market Segmentation
Bases for Segmenting Consumer Markets

Geographic
Nations, states,
regions or cities

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

Psychographics
Social class, lifestyle,
or personality

Behavioral
Occasions, benefits,
uses, or responses
Using Multiple Segmentation
Bases: Geodemographics
Benefit Segmentation of the
Snack Food Market
• Segmenting Business Markets
– Type of organization
– Organizational characteristics
– Benefits sought or buying process
– Personal and psychological characteristics
– Relationship intensity
Target Marketing Strategies
Step 1. Market Segmentation
Bases for Segmenting Business Markets

Demographics
Situational -Industry
Factors -Size
-location
Bases
Bases
for
for Segmenting
Segmenting
Business
Business
Purchasing Markets
Markets
Approaches Operating
Characteristics
-Technology
-User type
-Customer capability
Step 1. Market Segmentation
Requirements for Effective Segmentation

• Difference in the characteristics

Distinctive
Distinctive
Accessible
Accessible • Can we reach the customers? Dist,
media
• can the size, purchasing power,
Measurable
Measurable profitability be objectively determined

Sustainable
Sustainable • is this a fad? Will the segment last to
cover cost

Serviceable
Serviceable • Does the org have the resources to
cater for the needs?

Defendable
Defendable • can we defend successfully against
competitive threats

• is it compatible to org. mission,

Acceptable
Acceptable objective, culture
Step 2. Market Targeting
Market Coverage Strategies
Company
Company
Marketing
Marketing Market
Market
Mix
Mix

A. Undifferentiated Marketing
Company
Company
Marketing Segment
Segment11
MarketingMix
Mix11
Company
Company Segment
Segment22
Marketing
MarketingMix
Mix22
Company
Company Segment
Segment33
Marketing
MarketingMix
Mix33
B. Differentiated Marketing

Segment
Segment11
Company
Company
Marketing
Marketing Segment
Mix Segment22
Mix
Segment
Segment33
C. Concentrated Marketing
 Step 2. Market Targeting
Choosing a Market-Coverage Strategy

Company
Resources

Product
Variability

Product’s Stage
in the Product Life Cycle

Market
Variability

Competitors’
Marketing Strategies
 Step 3. Positioning for Competitive
Advantage: Strategies

Product
Product Product
Product
Class
Class Attributes
Attributes

Benefits
Benefits
G
G Offered
Offered
H
H C
C
Away
Awayfrom
from
Competitors
Competitors A
A
D
D
E
E
B
Usage
Usage
B F
F Occasions
Occasions

Users
Users
 Steps to Choosing and Implementing
a Positioning Strategy

• Step 1. Identifying a set of possible competitive

advantages: Competitive Differentiation.

• Step 2. Selecting the right competitive

advantage.

• Step 3. Effectively communicatingand

delivering the chosen position to the market.
Developing Competitive
Differentiation
Product
Product Service
Service

Areas
Areas for
for Competitive
Competitive
Differentiation
Differentiation

Personnel
Personnel Image
Image