Segmentation, Targeting, & Positioning
Segmentation, Targeting, & Positioning
Segmentation, Targeting, & Positioning
Market Segmentation
Behavioral Segmentation
– Segments based on actual behavior or product usage
Demographic Segmentation
– Segments based on demographic factors (e.g., gender,
age, income, education, etc.)
Psychographic Segmentation
– Segments based on state-of-mind issues (e.g., motives,
attitudes, opinions, values, lifestyles, interests,
personality, etc.)
Geographic Segmentation
– Segments based on geographic location
Market Segmentation Variables
Demographic:
– Age, gender, family size, income, occupation,
etc.
– The most popular bases for segmenting
customer groups.
– Easier to measure than most other types of
variables.
Market Segmentation
Gender
– Women make 90% of home improvement decisions.
– Women influence 80% of all household consumer
purchases.
Market Segmentation
Income
– Identifies and targets the affluent for luxury goods.
– People with low annual incomes can be a lucrative
market.
– Some manufacturers have different grades of products
for different markets.
Market Segmentation
Psychographic
– Social class
– Lifestyle
– Personality
Market Segmentation
Behavioral
– Occasions:
Special promotions and labels for holidays.
– (e.g.,Tour and travel packages for summer vacations)
Special products for special occasions.
– (e.g., Kodak disposable cameras)
Market Segmentation
Behavioral
– Benefits Sought:
Different segments desire different benefits from products.
– (e.g., P&G’s multiple brands of laundry detergents to satisfy
different needs in the product category)
Market Segmentation
Behavioral
Geographic:
– World region or country
– Region of country
– City or metro size
– Density or climate
– New term - Geodemography
Effective Segmentation
Company
Market
Marketing Mix
Differentiated marketing
Company
Segment 1
Marketing Mix 1
Company
Segment 2
Marketing Mix 2
Company
Segment 3
Marketing Mix 3
Concentrated marketing
Segment 1
Company
Segment 2
Marketing Mix
Segment 3
17 12/08/21
Figure 7-3
2004 Pearson Education Canada
Inc.
Mass Marketing Strategy
Multisegment Strategy
Market Concentration Strategy
Niche Marketing Strategy
Micromarketing
Type of Organization
Organizational Characteristics
Benefits Sought or Buying Processes
Personal and Psychological
Relationship Intensity
Segmenting International Markets
Factors Used:
– Geographic location
– Economic factors
– Political and legal factors
– Cultural factors
Intermarket Segmentation
Requirements for Effective
Segmentation
Measurable
Accessible
Substantial
Differentiable
Actionable
Choosing a Market Coverage Strategy
Depends on:
Company resources
Degree of product variability
Product life cycle stage
Market viability
Competitors’ marketing strategies
Market Targeting
Relative perception
Process of creating favorable relative position:
– (1) Identification of target market
– (2) Determination of needs, wants, preferences and
benefits desired
– (3) Examination of competitors’ characteristics and
positioning
– (4) Comparison of product offerings with competitors
– (5) Identification of unique position
– (6) Development of a marketing program
– (7) Continual reassessment
Differentiation and Positioning
Differentiation Strategies
– Product Descriptors
Product features
Advantages
Benefits
– Customer Support Services
– Image
Positioning Strategies
– Strengthen the Current Position
– Repositioning
– Reposition the Competition
Using Product Descriptors
for Product Differentiation
Choosing a Positioning Strategy
Benefit Positioning
User Positioning
Competitive Positioning
Positioning for Competitive Advantage
Product differentiation
Services differentiation
Image differentiation
People differentiation
Choosing Right Competitive
Advantages
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
Communicating and Delivering the
Chosen Position
Under positioning:
– Failing to really position the company at all.
Over positioning:
– Giving buyers too narrow a picture of the company.
Confused Positioning:
– Leaving buyers with a confused image of a company.
Doubtful Positioning:
– Finding it hard to believe the brand claims w.r.t product’s
features, or price
Repositioning
Develop measures of
segment attractiveness
Market
targeting
Select the
target segment(s)
Develop positioning
for each segment
Market
positioning
Develop marketing mix
for each segment
Figure 7-1