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Segmenting, Targeting     and Positioning:       Building Right   Relationships with    Right Customers                Cha...
Steps in Segmenting, Targeting and            Positioning
Market SegmentationDividing a market into smaller  groups (segments) of buyers      with distinct needs,characteristics or...
Target MarketingEvaluating each marketsegment’s attractiveness  and selecting one or  more of the market   segments to ent...
Market PositioningSetting the competitive  positioning for theproduct and creating a  detailed marketing          mix.
Market SegmentationSegmenting Consumer             Markets
Geographic SegmentationDemographic Segmentation Psychographic Segmentation Behavioral Segmentation
Geographic Segmentation Dividing the market into  different geographical   unit such as nations,      regions, states, cou...
lSegmentation       McDonald in Middle East offers any       kind of meal that is chicken or beef
lSegmentation        McDonald in New Zealand, offers        KiwiBurger. Kiwi is a local basic food to        its country.
lSegmentation        Main idea to serve coke is when it is        cold so Coca-cola focuses on hot areas        of the wor...
Demographic SegmentationDivides the market into groupsbased on variables such as age,gender, family size, family life  cyc...
Demographic Segmentation  •Age & life-cycle  Segmentation  •Gender  Segmentation  •Income  Segmentation
cSegmentation Age & life Cycle Segmentation                    Colgate for Kids & Colgate Total
cSegmentation  Age & Life Cycle  Segmentation                     Baby Bench &Bench
cSegmentation     Gender     Segmentation
icoke has small returnable glasses price ranges from P7-12. For middle people, it has non-returnable bottle. For high inco...
PSYCHOGRAPHICSEGMENTATION Dividing the market intodifferent groups based on  social class, lifestyle orpersonality charact...
PSYCHOGRAPHIC SEGMENTTION  •Social Class   •Lifestyle  •Personality
SocialClassDifferent consumers      fall in different  social classes. This depends mainly on their buying power.The buyin...
LifestyleEVERYONE HAS DIFFERENTCLOTHING HABITS BASEDON THEIR LIFESTYLES. THE  CUSTOMER MIGHT BESCHOOL GOING, COLLEGEGOING,...
Personality           Personality in psychographic      segmentation is dependent on both –    lifestyle as well as social...
BEHAVIORAL  SEGMENTATION•Dividing a market into groupsbased on consumer knowledge, attitude, use or response to a         ...
BEHAVIORALSEGMENTATION•Occasion Segmentation  •Benefits Sought    •User Status    •Usage Rate   •Loyalty Status
OccasionSegmentation   Dividing a market         into groups        according to    occasions where  buyers get the idea  ...
BenefitSegmentation    Dividing the market into     groups according to the   different benefits that the   consumers seek...
User                   Usage  Status                 Rate   • Markets can be • Markets can also      segmented into    be ...
Loyalty StatusConsumers can be loyal to   brands, store and      companies.
Using Multiple  Segmentation BasesExample of mulitvariablesegmentation isGeodemographicsSegmentation.
Leading lifestyle segmentation systems            is the PRIZM
PRIZM:Potential Rating Index   for Zip Markets
Marketers can use MyBestSegments to guidemarketing campaigns and media strategiesfor specific market segments by answering...
Examples of PRIZMSegmentation Systems: •“Blue blood estates” – suburban areas populated by elite, super-rich families. •“s...
Segmenting Business MarketsOperating CharacteristicsPurchasing Approaches Situational Factors   Personal Characteristics
Segmenting InternationalMarkets       Geographic Location         Economic Factors     Political and Legal Factors        ...
Intermarketsegmentation-            Forming segments of    consumers who have similar      needs and buying behavior    ev...
Requirements for Effective        Segmentation Measurable           Accessible              SubstantialDifferentiable     ...
TargetMarketing Evaluating Market          Segments
Evaluating Market       SegmentsSegment Size and Growth  Analyze current segment sales, growth rates,  and expected profit...
Selecting Target Market        Segments  Target Market  consists of a set of  buyers who share common  needs or character...
Target Marketing Strategies
Undifferentiated (mass) Marketing       Firm decides to ignore market segment   differences and target the whole market w...
Differentiated (segmented)Marketing           Firm targets several market    segments and designs separate offers        ...
Concentrated (niche)Marketing      Firm goes after a large share of      one or a few segments or niches.
Micromarketing Practice of tailoring products &marketing programs to the needs and wants of specific individuals and     ...
Choosing a Target Marketing          Strategy        Company Resources        Product Variability     Product’s Life-Cycle...
Socially Responsible Target         MarketingSmart targeting helps both companiesand consumers.Target marketing sometime...
Positioning forCompetitive Advantage
Product Position       Is the way the product s        defined by consumers on  important attributes – the place         ...
Positioning MapPositioning maps for     Large    luxury     SUVs
Choosing a Positioning             Strategy      #1 Identify a      set of possible         #2 Choose the rightcompetitive...
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Chapter 7: Segmenting, Targeting & Positioning

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Chapter 7: Segmenting, Targeting & Positioning

  1. 1. Segmenting, Targeting and Positioning: Building Right Relationships with Right Customers Chapter 7 Group 4
  2. 2. Steps in Segmenting, Targeting and Positioning
  3. 3. Market SegmentationDividing a market into smaller groups (segments) of buyers with distinct needs,characteristics or behavior who might require separate products or marketing mixes.
  4. 4. Target MarketingEvaluating each marketsegment’s attractiveness and selecting one or more of the market segments to enter.  
  5. 5. Market PositioningSetting the competitive positioning for theproduct and creating a detailed marketing mix.
  6. 6. Market SegmentationSegmenting Consumer Markets
  7. 7. Geographic SegmentationDemographic Segmentation Psychographic Segmentation Behavioral Segmentation
  8. 8. Geographic Segmentation Dividing the market into different geographical unit such as nations, regions, states, countries,cities or even neighborhood
  9. 9. lSegmentation McDonald in Middle East offers any kind of meal that is chicken or beef
  10. 10. lSegmentation McDonald in New Zealand, offers KiwiBurger. Kiwi is a local basic food to its country.
  11. 11. lSegmentation Main idea to serve coke is when it is cold so Coca-cola focuses on hot areas of the world. .
  12. 12. Demographic SegmentationDivides the market into groupsbased on variables such as age,gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
  13. 13. Demographic Segmentation •Age & life-cycle Segmentation •Gender Segmentation •Income Segmentation
  14. 14. cSegmentation Age & life Cycle Segmentation Colgate for Kids & Colgate Total
  15. 15. cSegmentation Age & Life Cycle Segmentation Baby Bench &Bench
  16. 16. cSegmentation Gender Segmentation
  17. 17. icoke has small returnable glasses price ranges from P7-12. For middle people, it has non-returnable bottle. For high income peo Segmentati on Income Segmentation:
  18. 18. PSYCHOGRAPHICSEGMENTATION Dividing the market intodifferent groups based on social class, lifestyle orpersonality characteristics.
  19. 19. PSYCHOGRAPHIC SEGMENTTION •Social Class •Lifestyle •Personality
  20. 20. SocialClassDifferent consumers fall in different social classes. This depends mainly on their buying power.The buying power is affected by the background of the customer, his income as well ashis spending habits.
  21. 21. LifestyleEVERYONE HAS DIFFERENTCLOTHING HABITS BASEDON THEIR LIFESTYLES. THE CUSTOMER MIGHT BESCHOOL GOING, COLLEGEGOING, OFFICE GOING OR OTHER.
  22. 22. Personality Personality in psychographic segmentation is dependent on both – lifestyle as well as social class. A person will have a rich personality only if he has high buying power as well as the taste in clothes to maintain such a lifestyle.(
  23. 23. BEHAVIORAL SEGMENTATION•Dividing a market into groupsbased on consumer knowledge, attitude, use or response to a product.
  24. 24. BEHAVIORALSEGMENTATION•Occasion Segmentation •Benefits Sought •User Status •Usage Rate •Loyalty Status
  25. 25. OccasionSegmentation Dividing a market into groups according to occasions where buyers get the idea to buy, actually make their purchase or use the purchased item.
  26. 26. BenefitSegmentation Dividing the market into groups according to the different benefits that the consumers seek from the product. Requires finding the major benefits people look for in the product class, the kindsof people who look for each benefits and the major brands that deliver each benefit
  27. 27. User Usage Status Rate • Markets can be • Markets can also segmented into be segmented into groups of nonusers, light, medium and ex-users, potential heavy productusers, first time usersand regular users of a users product.
  28. 28. Loyalty StatusConsumers can be loyal to brands, store and companies.
  29. 29. Using Multiple Segmentation BasesExample of mulitvariablesegmentation isGeodemographicsSegmentation.
  30. 30. Leading lifestyle segmentation systems is the PRIZM
  31. 31. PRIZM:Potential Rating Index for Zip Markets
  32. 32. Marketers can use MyBestSegments to guidemarketing campaigns and media strategiesfor specific market segments by answering: Who are the potential customers? What are they like? Where can I find them? How can I reach them?
  33. 33. Examples of PRIZMSegmentation Systems: •“Blue blood estates” – suburban areas populated by elite, super-rich families. •“shotguns & pickups” - populated by rural blue-collar workers & families. •“hispanic mix” – cluster are highly brand conscious, quality conscious and brand loyal. •“money & brains” – they buy a lot of books.
  34. 34. Segmenting Business MarketsOperating CharacteristicsPurchasing Approaches Situational Factors Personal Characteristics
  35. 35. Segmenting InternationalMarkets Geographic Location Economic Factors Political and Legal Factors Cultural Factors
  36. 36. Intermarketsegmentation- Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
  37. 37. Requirements for Effective Segmentation Measurable Accessible SubstantialDifferentiable Actionable
  38. 38. TargetMarketing Evaluating Market Segments
  39. 39. Evaluating Market SegmentsSegment Size and Growth Analyze current segment sales, growth rates, and expected profitability.Segment Structural Attractiveness Consider effects of: competitors, existence of substitute products, and the power of buyers & suppliers.Company Objectives and Resources Examine company skills & resources needed to succeed in that segment. Offer superior value and gain advantages over competitors.
  40. 40. Selecting Target Market Segments Target Market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
  41. 41. Target Marketing Strategies
  42. 42. Undifferentiated (mass) Marketing Firm decides to ignore market segment differences and target the whole market with one offer. Focus is on common (not different) needs of the consumers.
  43. 43. Differentiated (segmented)Marketing Firm targets several market segments and designs separate offers for each. •The goal is to have higher sales and a stronger position with each market
  44. 44. Concentrated (niche)Marketing Firm goes after a large share of one or a few segments or niches.
  45. 45. Micromarketing Practice of tailoring products &marketing programs to the needs and wants of specific individuals and locations. Tailoring brands Local Marketing: and promotions to the needs and wants of local customer groups—cities, neighborhoods, specific stores. Individual Marketing: Tailoring products and marketing programs to the needs and preferences of individual customers.
  46. 46. Choosing a Target Marketing Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies
  47. 47. Socially Responsible Target MarketingSmart targeting helps both companiesand consumers.Target marketing sometimes generatescontroversy and concern. •Vulnerable and disadvantaged can be targeted. •Cereal, cigarette, beer, and fast-food marketers have received criticism. •Internet has raised fresh concerns about potential targeting abuses.
  48. 48. Positioning forCompetitive Advantage
  49. 49. Product Position Is the way the product s defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products.
  50. 50. Positioning MapPositioning maps for Large luxury SUVs
  51. 51. Choosing a Positioning Strategy #1 Identify a set of possible #2 Choose the rightcompetitive advantages on competitive advantages which to build a position #3 Select an overall positioning strategy

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