The document discusses market segmentation, targeting, and positioning as fundamental concepts in consumer behavior. It explains how businesses can categorize consumers based on demographics, psychographics, and behavior to tailor products and marketing strategies, leading to enhanced customer understanding and competitive advantage. Additionally, effective positioning is emphasized as a means to influence consumer perceptions and decisions, fostering brand loyalty and satisfying customer needs.

1. Understanding
Segmentation, Targeting,
and Positioning in
Consumer Behavior

2. 01
SEGMENTATION

3. Understanding market
segmentation
1
Defining market segmentation
Market segmentation is the process of dividing a market into distinct
groups of buyers who have different needs, characteristics, or
behaviors.
2
Benefits of market segmentation
Segmentation allows businesses to tailor their products, services, and
marketing efforts to meet the specific needs of different customer
groups, leading to increased customer satisfaction and higher sales.
3
Effective targeting through segmentation
By segmenting the market, businesses can identify and target the
most profitable customer segments, resulting in improved resource
allocation and better return on investment.

4. EGMENTING
DEMOGRAPHICS
01
02
PSYCHOGRAPHICS
03
04
GEOGRAPHYCAL
BEHAVIORAL
strategy begins by dividing the
market for a product into
groups that are relatively
homogeneous and share
characteristics that are
different from those of other
groups.
• Age
• Gender
• Households and Families
• Social Class
• Ethnicity

5. Demographic Segmentation
Age, Gender, and
Income
Demographic segmentation
involves dividing the market
based on age, gender, and
income levels to target
specific consumer groups.
1
Education and
Family Size
Consideration of
educational background
and family size is crucial in
understanding the needs
and preferences of different
consumer segments.
2
Income-based
Segmentation
Income-based
segmentation divides
consumers by their income
levels, helping businesses
customize pricing and
offerings to different income
brackets.
3
Climate and
Cultural Factors
Understanding climate and
cultural influences helps in
tailoring products and
marketing messages to
resonate with specific
geographic consumer
groups.
4

6. Behavioral Segmentation
Usage Rate
Segmentation
Usage rate segmentation
categorizes consumers based on
how often they use a product,
allowing businesses to tailor loyalty
programs and marketing to
different usage patterns.
Purchase occasion
Segmentation
Purchase occasion segmentation
groups consumers based on when
they make purchases, enabling
companies to create targeted
promotions for different buying
occasions.
Brand Loyalty
Segmentation
Brand loyalty segmentation
classifies consumers based on
their loyalty to specific brands,
helping businesses create
retention strategies and tailored
marketing for loyal customers.

7. Psychographic Segmentation
Lifestyle and Personality
Psychographic segmentation delves into
consumer lifestyles and personalities,
allowing for targeted marketing based on
interests, values, and behavior patterns.
Social Class and Values
Consideration of social class and values
aids in identifying consumer segments
with similar attitudes and beliefs,
enabling effective targeting strategies.
Attitudes and Motivations
Understanding consumer attitudes and
motivations assists in crafting marketing
messages that resonate with specific
psychographic segments.
Values-based
Values-based segmentation divides
consumers based on their deeply-held
values, helping companies create
offerings and communications that
resonate with specific value systems.

8. https://www.youtube.com/watch?v=F-
UO9vMS7AI

9. Importance of market segmentation
1
Enhanced customer
understanding
Segmentation helps
businesses gain a deeper
understanding of their
customers, allowing them to
develop products and services
that resonate with specific
market segments.
2
Competitive
advantage
Effective segmentation
enables businesses to
differentiate themselves from
competitors by offering unique
value propositions tailored to
the needs of different
customer segments.
3
Market expansion
opportunities
Segmentation can uncover
new market opportunities by
identifying underserved
customer segments, leading to
potential growth and
expansion for businesses.

10. 02
TARGETING

11. Target Market Selection
Market Size and
Growth Potential
Evaluating the size and
growth potential of target
markets is essential in
identifying lucrative
opportunities for business
expansion and revenue
generation.
Competitive
Analysis
Conducting a competitive
analysis helps in
understanding the market
landscape and positioning
the brand effectively to gain
a competitive edge in the
chosen target markets.
Resource Allocation
Strategic allocation of
resources is crucial for
effectively reaching and
engaging the chosen target
markets, maximizing
marketing ROI and
business outcomes.
Consumer Behavior
Trends
Monitoring consumer
behavior trends enables
businesses to adapt their
strategies and offerings to
align with evolving
consumer preferences and
needs.
Choose the most appealing/high-profit
potential segments to market to

12. 03
POSITIONING

13. Positioning in consumer behavior
Defining positioning
Positioning refers to how a brand
or product is perceived in the
minds of consumers relative to
competing products, based on
attributes, benefits, and
associations.
Creating a unique
position
Effective positioning allows
businesses to create a unique and
compelling image for their brand or
product, influencing consumer
perceptions and purchase
decisions.
Aligning with target
segments
By aligning positioning strategies
with the needs and preferences of
specific market segments,
businesses can enhance
relevance and appeal to their
target audience.

14. Positioning Strategies
Unique Selling
Proposition (USP)
Developing a compelling
USP helps in differentiating
the brand and creating a
unique position in the
minds of the target market,
driving competitive
advantage.
1
Perceptual Mapping
Utilizing perceptual
mapping aids in visually
representing consumer
perceptions of competing
brands, facilitating effective
positioning strategies.
2
Brand Personality
and Image
Crafting a distinct brand
personality and image
contributes to creating a
strong and resonant
position in the minds of the
target consumers.
3
Emotional Branding
Implementing emotional
branding techniques helps
in forming deep emotional
connections with the target
market, fostering brand
loyalty and preference.
4

15. Benefits of effective
positioning
Targeted marketing
efforts
Clear positioning allows for
targeted marketing efforts
towards the right consumer
segments.
1
Enhanced brand
loyalty
Effective positioning fosters
brand loyalty by creating
strong emotional
connections with
consumers.
2
Increased customer
satisfaction
Well-positioned brands
meet consumer needs and
expectations, leading to
higher satisfaction.
3
Improved price
premium
Strong positioning enables
brands to command
premium prices for their
products or services.
4

16. Impact of positioning on consumer decision-making
Influence on
purchase intent
Strong positioning
positively influences
consumers' intent to
purchase a particular brand
or product.
Perceived value and
quality
Positioning affects
consumers' perception of a
brand's value and the
quality of its offerings.
Emotional
connections
Effective positioning
creates emotional
connections with
consumers, impacting their
purchase decisions.
Brand preference
and loyalty
Well-positioned brands
often enjoy higher
preference and loyalty from
consumers.

17. Implementing the
positioning strategy
Internal alignment
and training
Ensuring internal
stakeholders are aligned
with the positioning
strategy and providing
training to employees to
deliver the brand promise
consistently.
1
Communication and
messaging strategy
Developing a
comprehensive
communication and
messaging strategy to
effectively convey the
brand's positioning to the
target market through
various channels.
2
Monitoring and
adapting
Establishing monitoring
mechanisms to track the
effectiveness of the
positioning strategy and
adapting to market
dynamics and consumer
feedback.
3
Repositioning and
adjustments
Being prepared to make
strategic adjustments or
repositioning based on
market changes,
competitive actions, and
evolving consumer needs.
4

18. “For (target audience), brand (brand name) is the
(frame of reference) that delivers (benefit/point of
difference) because only (brand name) (reason to
believe or competitive edge)

19. Thank You
Meta Bara Berutu, S.E., M.M.