This chapter discusses market segmentation, targeting, and positioning. It defines market segmentation as dividing a target market into smaller, more precisely defined groups that have common needs. There are three main methods of segmenting consumer markets: geographic, demographic, and psychographic segmentation. Cultural factors like power distance, individualism vs collectivism, uncertainty avoidance, and masculinity/femininity also affect segmentation of international markets. The chapter outlines strategies for selecting target markets and discusses product positioning as defining where a product fits in the marketplace compared to alternatives.

1. Principle of marketing
Chapter5: market
segmentation , Targeting
and positioning
Luctre: khadar
Mohamed abdulle

2. Chapter Outline
5.1 Market Segmentation and Consumer Markets.
5.2 Segmentation of International Markets
5.3 Selecting Target Markets
5.4 Product Positioning

3. 5.1 Market Segmentation and
Consumer Markets
market segmentation—the process of dividing a
target market into smaller, more precisely defined
groups of consumers or organizations who have
common needs and are expected to respond similarly
to a marketing action.

4. The Advantages of Market
Segmentation to the Organization
1. Improved Focus on the “Important” Customers.
2. Improved Product Development.
3. Improved Brand Loyalty.

5. Methods of Segmenting Consumer
Markets
1. Geographic segmentation: the “where”
2. Demographic segmentation: the “who”
3. Psychographic segmentation: the “why”

6. Geographic Segmentation: The
“Where”
geographic segmentation, or dividing the market
based on where your customers or potential
customers live.
geographic
segmentation
Climate
/season
Populatio
n type /
density
Language
Culture
Location

7. Demographic Segmentation: The
“Who”

8. Psychographic Segmentation
• Values
• Personality
• Lifestyle
Psychographic

9. 5.2 Segmentation of International
Markets

10. Cultural factors
• Four of these dimensions directly affect marketing in
different cultures:
1.The power-distance index measures the degree to
which the members of a group or society accept the
hierarchy of power and authority.
2.Individualism versus Collectivism (IDV). An
individualistic society places emphasis on attaining
personal goals, whereas a collectivist culture places
emphasis on group goals and the well-being of the
group.

11. Cultural factors
3.Uncertainty Avoidance (UAI). This dimension
refers to the degree to which a society avoids risk or
ambiguity.
• Societies with a high degree of uncertainty
avoidance compensate for this uncertainty by
establishing rules, policies, and procedures, whereas
societies with low uncertainty avoidance more
readily accept change.

12. Cultural factors
4. Masculinity/Femininity (MAS).
This dimension refers to the degree to which gender-
specific roles are valued in the society:
Are “masculine” values such as achievement, ambition,
and acquisition or “feminine” .

13. 5.3 Selecting Target Markets
• A target market is a specific group of potential
customers who a business aims to reach with its
products or services.
• This group may share common characteristics such as
age, gender, income level, education, interests, or
geographic location.

14. Target Market Strategies

15. 5.4 Product Positioning
• Product positioning is a strategic exercise that
defines where your product or service fits in the
marketplace and why it is better than alternative
solutions.
• The goal is to distill who your audience is, what
they need, and how your product can uniquely help.
Product positioning is the basis of your marketing
story.

16. Approaches to Product Positioning
• There are four main types of product positioning in
marketing:
Types of Product positioning in marketing.
• Price-based positioning.
• Lifestyle-based positioning.
• Characteristics-based positioning.
• Quality- or prestige-based positioning.