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9-1
CHAPTER
SEGMENTATION,
TARGETING, AND
POSITIONING
9
9-2
L E A R N I N G O B J E C T I V E S
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
9-3
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
9-4
Step 1: Establish Overall
Strategy or Objectives
Check Yourself
Derived from mission and
current state
©M. Hruby.
9-5
Step 2: Segmentation Methods
9-6
CHECK YOURSELF
1. What are the various segmentation methods?
9-7
Step 3: Evaluate Segment Attractiveness
SEGMENT
ATTRACTIVENESS
Substantial
Reachable
ResponsiveProfitable
Identifiable
9-8
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
Substantial
 Too small and it is
insignificant
 Too big and it might
need it’s own store
©JerryArcieri/Corbis
9-10
Reachable
Know the product
exists
Understand what it
can do
Recognize how to
buy
©Digital Vision/PunchStock
9-11
Responsive
React positively to firm’s
offering
Move toward the firms
products/services
Accept the firm’s value
proposition
Customers must:
9-12
Profitable Segments
 Segment size = 60
million (<15 yrs)
 Segmentation Adoption
Percentage = 35%
 Purchase Behavior =
$500 x 1 time purchase
 Profit margin % = 10%
 Fixed Cost = $50MIs this segment profitable?
©Comstock/PunchStock
9-13
Step 4: Selecting a Target Market
 Conde Nast has more than 20
niche magazines focused on
different aspects of life.
©M Hruby
9-14
Segmentation Strategy
Targeting
Strategies
Differentiated
Concentrated
Micromarketing
or
one-to-one
Undifferentiated
or
mass marketing
9-15
Step 5: Develop Positioning Strategy
• Value
• Salient Attributes
• Symbol
• Competition
Positioning
Methods
Photo by Tiffany Rose/WireImage/Getty Images
9-16
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.
9-17
Perceptual Maps
9-18
CHECK YOURSELF
1. What is a perceptual map?
2. Identify the six positioning steps.

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Chapter 9 - Segmentation, Targeting, and Positioning