2. Aim : To introduce Planning
segmentation, targeting and positioning
Peter Drucker (2001): “The aim of marketing is
to know and understand the customer so well
the product or service fits him and sells itself.”
3. OBJECTIVES :
to define segmentation, targeting
and positioning
to give examples of segmentation
to apply segmentation to a company
4. Market segmentation
Grouping consumers or business customers within a
market into smaller segments based on similarities in
needs, attitudes or behaviour that marketing can
address and serve better.
Ex : Shotgun different from Riffle theory
5. Benefits of segmentation
Lower marketing expenses.
Target marketing communications
Gain major portion of the market segment (J H Myers,1996)
Better matching of customer needs, Taylor product
Enhanced profits for business
Better opportunities for growth
Increased effectiveness in marketing compaign.
improves customer satisfaction
6. Segmentation process and Strategies
Four basic factors :
(1) clear identification of the segment,
(2) measurability of its effective size,
(3) its accessibility through promotional efforts
(4) its appropriateness to the policies and resources of the company.
The four segmentation-strategies are based on
(a) behavioural
(b) demographic,
(c) psychographic
(d) geographical differences.
7. Consumer market segmentation
Apply segmentation variables in consumer markets
Customer characteristics
Demographic, socioeconomic, geographic,
lifestyle/personality
Product-related approaches
User types, consumption patterns, loyalty, price sensitivity,
perceived benefits, application, purchase occasion, media
exposure
Example of wigan and leigh college clients
8. Targeting
Kurtz, Dave. (2010) states that a target market is a group
of customers that the business has decided to aim its
marketing efforts and ultimately its merchandise.
9. Segments for targeting
Evaluate and select segments for targeting
Eliminate undesirable segments
Check segment fit with internal factors
Check segment fit with opportunities and threats
Select segments that play to strengths/resources
Check that segment can be reached/will respond
10. Positioning
According to Ries, A. and Trout, J. (1981)
Positioning is about Identifying a market niche for a
brand. Positioning therefore involves aspects like
price, promotion, distribution, packaging, and
competition. You Create a unique impression in
the customer mind.
11. Positioning
Positioning should be
based on differentiation that is relevant, believable,
competitively distinctive
carried through in marketing activities, product
performance
watch this
WHAT IS POSITIONING? DIFFERENCE BETWEEN VOLVO, FERRARI, LEXUS,BMW,
http://www.youtube.com/watch?v=EvtaQhxBCIU&feature=player_detailpage
12. Conclusion
What is segmentation
What is Targeting
What is positioning
What are the benefits of segmentation
4 strategies segmentation is based on
13. References
Drucker, Peter. (2001) The Essential Drucker, Butterworth-Heinemann
Ries, A. and Trout,J. (1981) Positioning, The battle for your mind, Warner Books - McGraw-Hill
Inc., New York.
Kurtz, Dave. (2010) Contemporary Marketing Mason, OH: South-Western Cengage Learning
Myers,J.H.(2002) Eradication :Is it ecologically , financially, environmentally and realistically
possible? In Managing for Healthy Ecosystems.
