Market Segmentation and Product Positioning

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Chapter 15 Market Segmentation and Product
Positioning
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15.1 Tasks Involved in Market Segmentation
Analyze Consumer-product relationships
Investigate segmentation bases
Develop product positioning
Select segmentation strategy
Design marketing mix strategy
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15.2 Target Markets for JC Pennys Womens
Apparel
Conservative Traditional Update
Size Age Income Benefits sought
23 of pop. 16 of sales 35-55 Limited
disposable Price-driven, reacts to sales, not
interested in fashion
38 of pop 40 of sales 25-49 Considerable
income Quality- driven. Wants clothes that last
16 of pop. 24 of sales 25-49 Considerable
income Fashion-driven. Expresses self through
clothes
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15.3 Useful Segmentation Bases for Consumer
Markets - Geographic Segmentation
Region Size of city, country or standard
metropolitan statistical area Population
density Climate
Pacific Mountain West North Central East North
Central East South Central South Atlantic
Middle Atlantic New England Under 5,000
5,000-19,999 20,000-49,999 50,000-99,999
100,000-249,999 250,000-499,999 etc Urban,
suburban, rural Warm, cold
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15.4 Useful Segmentation Bases for Consumer
Markets - Demographic Segmentation
15.4 Useful Segmentation Bases for Consumer
Markets - Demographic Segmentation
Under 6 6-12 13-19 20-29 30-39 40-49 50-59
60 Male Female 1-2 3-4 5 persons Under
10,000 10,000-14,999 15,000-24,999
25,000-34,999 35,000-49,999 Over
50,000 Professional craftspeople, foremen
farmers retired students homemakers
unemployed etc...
Age Gender Family size Income Occupati
on
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15.5 Useful Segmentation Bases for Consumer
Markets - Sociocultural Segmentation
15.4 Useful Segmentation Bases for Consumer
Markets - Demographic Segmentation
American, Hispanic, African, Asian,
European Jewish, Catholic, Muslim, etc... French,
Malaysian, Australian, etc... European-American,
African American, Asian-American-
Hispanic-American, etc... Upper class, middle
class, working class, lower class
Culture Religion Nationality Race Soci
al class
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15.6 Useful Segmentation Bases for Consumer
Markets - Affective and
Cognitive Segmentation
15.4 Useful Segmentation Bases for Consumer
Markets - Demographic Segmentation
Expert, novice High, low Positive, neutral,
negative Convenience, economy, prestige Innovator,
early adopter, early majority, late majority,
laggard, nonadopter Unaware, aware, interested,
desirous, plan to purchase
Knowledge Involvement Attitude Benefits
Sought Innovativeness Readiness stage
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15.7 - Eight American Lifestyles

• Actualizers - These consumers have the highest
  incomes and such high self-esteem and abundant
  resources that they can indulge in any or all
  self-orientations. Image is important to them as
  an expression of taste, independence and
  character. Their consumer choices are directed
  toward the finer things in life.
• Fulfilleds- These consumers are the high
  resource group of those who are
  principle-oriented. They are responsible,
  well-educated professionals whose leisure
  activities center on their homes. They have high
  incomes but are practical consumers.

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15.8 - Eight American Lifestyles, cont..

• Believers - These consumers are the low resource
  group who are people-oriented. They are
  conservative and predictable consumers who favor
  American products and established brands. Their
  lives are centered on family, church, community
  and the nation.
• Achievers- These consumers are the high resource
  group who are status-oriented. They are
  successful, work-oriented people who get their
  satisfaction from jobs and families. They favor
  established products and services that show-off
  their success to their peers.

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15.9 - Eight American Lifestyles, cont..

• Strivers - These consumers are the low resource
  group who are status-oriented. They have values
  similar tot he Achievers, but have fewer
  economic, social and psychological resources.
  Style is extremely important to them and they
  strive to emulate people they admire and wish to
  be like.
• Experiencers- These consumers are the high
  resource group who are action-oriented. They are
  the youngest of all the segments with a median
  age of 25. They have a lot of energy, and spend
  heavily on clothing, music, and other youthful
  favorites - with a particular emphasis on new
  products.

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15.10 - Eight American Lifestyles, cont..

• Makers - These consumers are the low resource
  group of those who are action-oriented. They are
  practical people who value self-sufficiency.
  They focus on the familiar - family, work and
  recreation - and have little interest in the
  broader world. They appreciate practical and
  functional products.
• Strugglers- These consumers have the lowest
  incomes. They have too few resources to be
  included in any consumer self-orientation. They
  are the oldest of all the segments with a median
  age of 61. Within their limited means, they tend
  to be brand-loyal consumers.

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15.11 Positioning Map for Automobiles
Luxurious

• Mercedes

• Lexus

• Cadillac

• Porsche

• Buick

• BMW

• Oldsmobile

Traditional

• Pontiac

Sporty

• Ford

• Chevrolet

• Mercury

• Nissan

• Dodge

• Toyota

• Saturn

• Plymouth

Functional