Detailed View

1. Segmentation, Targeting,
and Positioning

2. 7- 1
Steps in Market
Segmentation, Targeting,
and Positioning

3. 7- 2
Definition
Market Segmentation:
 Dividing a market into
distinct groups with distinct
needs, characteristics,
or behavior who
might require
separate products
or marketing
mixes.

4. 7- 3
Market Segmentation
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Geographical
segmentation
 Marketing mixes are
customized
geographically
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
Key Topics

5. 7- 4
Market Segmentation
Geographic
Segmentation Variables
City or
Climate
Area
World Region
or Country
Country
Region
City

6. 7- 5
Market Segmentation
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Geographical segments
Demographic
segmentation
 Most popular type
 Demographics are closely
related to needs, wants
and usage rates
Psychographic
segmentation
Behavioral
segmentation
Key Topics

7. 7- 6
Market Segmentation
Demographic
Segmentation Variables
Age
Gender
Family size
Population
Family life cycle
Income
Ethnicity
Occupation
Education
Religion
Generation
Nationality

8. 7- 7
Market Segmentation
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Geographic segments
Demographic
segmentation
Psychographic
segmentation
 Lifestyle, social class,
and personality-based
segmentation
Behavioral
segmentation
Key Topics

9. 7- 8
Market Segmentation
Geographic segments
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
 Typically done first
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Key Topics

10. 7- 9
Market Segmentation
Behavioral
Segmentation Variables
Occasions
Benefits
Loyalty Status
Etc.

11. 7- 10
Market Segmentation
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Geographic segments
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
Key Topics

12. 7- 11
Market Segmentation
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Demographic segmentation
 Industry, company size,
location
Operating variables
 Technology, usage status,
customer capabilities
Purchasing approaches
Situational factors
 Urgency, size of order
Key Topics

13. 7- 12
Market Segmentation
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Geographic segmentation
 Location or region
Economic factors
 Population income or level of
economic development
Political and legal factors
 Type / stability of
government, monetary
regulations, amount of
bureaucracy, etc.
Cultural factors
 Language, religion, values,
attitudes, customs,
behavioral patterns
Key Topics

14. 7- 13
Market Segmentation
Segmenting
Consumer Markets
Segmenting
Business Markets
Segmenting
International
Markets
Requirements for
Effective
Segmentation
Measurable
 Size, purchasing power, and
profile of segment
Accessible
 Can be reached and served
Substantial
 Large and profitable enough
to serve
Differentiable
 Respond differently
Actionable
 Effective programs can be
developed
Key Topics

15. 7- 14
Target Marketing
Evaluating Market Segments
 Segment size and growth
 Segment structural attractiveness
 Level of competition
 Substitute products
 Power of buyers
 Powerful suppliers
 Company objectives and resources

16. 7- 15
Target Marketing
Strategies

17. 7- 16
Target Marketing
Choosing a Target-
Marketing Strategy
Requires Consideration of:
 Company resources
 The degree of product variability
 Product’s life-cycle stage
 Market variability
 Competitors’ marketing
strategies

18. 7- 17
Positioning
Positioning:
 For wat a product is
known
 The place the product
occupies in
consumers’ minds
relative to competing
products.

19. 7- 18
Positioning
Choosing a Positioning Strategy:
 Identifying possible competitive
advantages -- many potential
sources of differentiation exist:
 Products
 Services
 Channels
 People
 Image

20. 7- 19
Positioning
Criteria for Meaningful Differences
Important
Superior
Preemptive
Distinctive
Communicable
Affordable
Profitable

21. Selecting an overall positioning
strategy;
 Examples
 More for the same (Lexus)
 Same for less (Dell, Wall-Mart)
 Less for much less (Southwest Airlines)
 More for less (P&G claims for laundry
detergents)
7- 20
Positioning

22. Thank You
7- 21