Segmentation, Targeting and Positioning

1. Marketing
Segmentation, Targeting, and Positioning

2. Step 1:
Establish the
Overall
Strategy or
Objectives
• Articulate the vision or the objectives of
the company's marketing strategy
clearly.
• Must be consistent with the company's
mission and objectives as well as its
SWOT ( strengths, weaknesses,
Opportunities and threats).

3. Step 2: Use
Segmentation Methods
• Develop descriptions of the different segments, helping
the company better understand customer profiles In each
segment.
• Helps identify customers similarities and dissimilarities
across segments.
• Marketers use geographic, demographic, psychographic,
benefit and behavioral segmentation methods.

4. • Geographic segmentation- organizes customers into groups based on where they live.
• Demographic segmentation- groups consumers according to easily measured
characteristics such as age, gender, income and education.
• Psychographic segmentation- breaking customers into groups based on how customers
describe themselves, their behaviors, beliefs, values and lifestyle.
• Benefit segmentation- the benefit consumers perceive that they get from a product or
service, what satisfies a customers wants and needs.
• Behavioral segmentation- the basis of how they use the product or service including
occasions or loyalty.

5. Step 3:
Evaluate
Segment
Attractiveness
This process involves evaluating the attractiveness
of the various segments.
Making sure the segment is:
1. Identifiable
2. Substantial
3. Reachable
4. Responsive
5. Profitable

6. segment attractiveness
Substantial
Reachable
Responsive
Profitable
Identifiable

7. Step 4: Select
a Target
Market
Targeting strategies used to select a target market:
1. Undifferentiated or mass marketing
2. Differentiated
3. Concentrated
4. Micromarketing

8. Step 5:
Identify and
Develop
Positioning
Strategy
The process of defining marketing mix variables so
that the target customers have a clear, distinctive,
desirable understanding of what the product does
or represents compared with competing products.

9. Segmentation
Step 1:
Step 2:
Establish
strategy or
objectives
Use
segmentat
ion
methods

10. Targeting
Evaluate
segment
attractiveness
Select
target
market
Step 3
Step 4

11. Positioning
Identify and develop
positioning strategyStep 5