1. 9-1
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CHAPTER
Segmentation,
Targeting, and
Positioning
9
McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.

2. 9-2
L E A R N I N G O B J E C T I V E S
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Outline the different methods of segmenting a
market.
Describe how firms determine whether a
segment is attractive and therefore worth
pursuing.
Articulate the difference among targeting
strategies: undifferentiated, differentiated,
concentrated, or micromarketing.
Determine the value proposition.
Define positioning, and describe how firms do it.
Segmentation, Targeting, and Positioning
LO1
LO2
LO3
LO4
LO5

3. 9-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Segmentation, Targeting,
Positioning Process
Step 1 • Strategy or Objectives
Step 2 • Segmentation Methods
Step 3 • Evaluate Segment Attractiveness
Step 4 • Select Target Market
Step 5 • Identify and Develop Positioning Strategy
Segmentation
Targeting
Positioning

4. 9-4
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step 1: Establish Overall
Strategy or Objectives
Check Yourself
Derived from mission and
current state
©M. Hruby.

5. 9-5
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step 2: Segmentation Methods

6. 9-6
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. What are the various segmentation methods?

7. 9-7
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step 3: Evaluate Segment Attractiveness
SEGMENT
ATTRACTIVENESS
Substantial
Reachable
ResponsiveProfitable
Identifiable

8. 9-8
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Identifiable
 Who is in their market?
 Are the segments unique?
 Does each segment require a unique marketing mix?
Liquidlibrary/Dynamic
Graphics/Jupiterimages
Liquidlibrary/Dynamic
Graphics/Jupiterimages
Comstock Images/JupiterImages

9. 9-9
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Substantial
 Too small and it is
insignificant
 Too big and it might
need it’s own store
©JerryArcieri/Corbis

10. 9-10
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Reachable
Know the product
exists
Understand what it
can do
Recognize how to
buy
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11. 9-11
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Responsive
React positively to firm’s
offering
Move toward the firms
products/services
Accept the firm’s value
proposition
Customers must:

12. 9-12
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Profitable

13. 9-13
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Step 4: Selecting a Target Market
 Conde Nast has more than 20
niche magazines focused on
different aspects of life.
©M Hruby

14. 9-14
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Segmentation Strategy
Targeting
Strategies
Differentiated
Concentrated
Micromarketing
or
one-to-one
Undifferentiated or
mass marketing

15. 9-15
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Step 5: Develop Positioning Strategy
• Value
• Salient Attributes
• Symbol
• Competition
Positioning
Methods
Photo by Tiffany Rose/WireImage/Getty Images

16. 9-16
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Positioning Steps
1. Determine consumers’ perceptions and evaluations in relation to competitors’.
2. Identify the market’s ideal points and size.
3. Identify competitors’ positions.
4. Determine consumer preferences.
5. Select the position.
6. Monitor the positioning strategy.

17. 9-17
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. What is a perceptual map?
2. Identify the six positioning steps.

18. 9-18
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Benefit segmentation groups consumers on the
basis of the benefits they derive from products
or services.
Glossary

19. 9-19
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Demographic segmentation groups consumers
according to easily measured, objective
characteristics such as age, gender, income,
and education.
Glossary

20. 9-20
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Geodemographic segmentation uses a
combination of geographic, demographic, and
lifestyle characteristics to classify consumers.
Glossary

21. 9-21
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Geographic segmentation organizes customers
into groups on the basis of where they live.
Glossary

22. 9-22
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Behavioral segmentation divides customers into
groups based on how they use the product or
service.
Glossary

23. 9-23
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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.
Glossary

24. 9-24
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The Value and Lifestyle Survey (VALS) is a
psychographic tool that classifies consumers
into eight categories based on their answers to
a questionnaire.
Glossary