Who is in their market?
Are the segments unique?
Does each segment require a unique marketing mix?
Too small and it is insigniﬁcant
Too big and it might need it’s
Know the product
Understand what it can
Recognize how to buy
React positively to firm’s
Move toward the firms products/
Accept the firm’s value proposition
14. Step 4: Selecting a Target Market
15. Segmentation Strategy
16. Step 5: Develop Positioning Strategy
• Salient Attributes
17. Positioning Steps
2. Identify the
points and size.
5. Select the
6. Monitor the
18. Positioning Maps Example
19. CHECK YOURSELF
What is a perceptual map?
Identify the six positioning steps.
20. Key Terms
Beneﬁt segmentation groups consumers on the basis of the
beneﬁts they derive from products or services.
Demographic segmentation groups consumers according
to easily measured, objective characteristics such as age,
gender, income, and education.
Geodemographic segmentation uses a combination of
geographic, demographic, and lifestyle characteristics to
Geographic segmentation organizes customers into groups
on the basis of where they live.
21. Key Terms
Behavioral segmentation divides customers into
groups based on how they use the product or service.
Psychographic segmentation, or psychographics,
allows people to describe themselves using
characteristics that help them choose how they occupy
their time (behavior) and what underlying psychological
reasons determine these choices.
The Value and Lifestyle Survey (VALS) is a
psychographic tool that classiﬁes consumers into eight
categories based on their answers to a questionnaire.