Segmenting, Targeting, and Positioning Cornerstones of Marketing Management

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Segmenting, Targeting, and Positioning
Cornerstones of Marketing Management

• Professor Charles D. Schewe

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Steps in Market Segmentation, Targeting, and
Positioning
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Basic Market-Preference Patterns
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Market Aggregation The Strategy of Mass
Marketing

• Advantages Disadvantages

• Product Differentiation

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Step 1. Market SegmentationLevels of Market
Segmentation
Mass Marketing Same product to all consumers (no
segmentation)
Segment Marketing Different products to one or
more segments (some segmentation)
Niche Marketing Different products to subgroups
within segments (more segmentation)
Micromarketing Products to suit the tastes of
individuals and locations (complete segmentation)
Local Marketing Tailoring brands/ promotions to
local customer groups
Individual Marketing Tailoring products/ programs
to individual customers
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Market Segmentation Subdividing the Market
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Steps in the Market Segmentation Process

• Determine Market Boundaries

• Decide Which Segmentation Variables to
• Use

• Collect and Analyze Segmentation Data

• Develop a Profile of Each Segment

• Target Segments to be Served

• Design a Marketing Plan

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Bases for Segmenting Consumer Markets
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Step 1. Market SegmentationBases for Segmenting
Business Markets
Personal Characteristics
Demographics
Bases for Segmenting Business Markets
Operating Characteristics
Situational Factors
Purchasing Approaches
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Effective Segmentation
Measurable
Substantial
Accessible
Differential
Actionable
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Descriptive Bases

• Age

• Gender

• Income

• Occupation

• Education

• Family Size or Family Life Cycle

• Religion or Nationality

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Geographic Bases

• Region

• Density

• Climate

• Population

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Behavioral Bases

• User Status Brand Loyalty

• Personality/Lifestyle

• Social Class

• Occasion

• Readiness to Buy

• Benefits Sought

• Usage Rate

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Heavy and Light Users of Common Consumer Products
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Single Versus Multiple Variable Segmentation
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Step 2. Market TargetingEvaluating Market
Segments

• Segment Size and Growth
• Analyze sales, growth rates and expected
  profitability
• for various segments.

Segment Structural Attractiveness Consider
effects of Competitors, Availability of
Substitute Products and, the Power of Buyers
Suppliers.
Company Objectives and Resources Company skills
resources relative to the segment(s). Look for
Competitive Advantages.
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Five Patterns of Target Market Selection
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Step 2. Market TargetingMarket Coverage
Strategies
Market
Company Marketing Mix
Company Marketing Mix 1
Segment 1
Company Marketing Mix 2
Segment 2
A. Undifferentiated Marketing
Segment 3
Company Marketing Mix 3
Segment 1
Company Marketing Mix
Segment 2
B. Differentiated Marketing
Segment 3
C. Concentrated Marketing
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Step 2. Market TargetingChoosing a
Market-Coverage Strategy
Company Resources
Product Variability
Products Life-Cycle Stage
Market Variability
Competitors Marketing Strategies
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Positioning the Offering
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Positioning is the act of designing the companys
offering and image to occupy a distinctive place
in the the target markets mind. P 298
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The BCG CompetitiveAdvantage Matrix
Volume
Specialized
Fragmented
Stalemated
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Product Differentiation
Form
Fea- tures
Perfor- mance
Quality
Conform- ance Quality
Dura- bility
Relia- bility
Repair- ability
Style
Design
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Services Differentiation
Ordering Ease
Installation
Customer Consulting
Delivery
Maintenance Repair
Customer Training
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Differentiation

• Personnel
• Channel

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Image Differentiation
Media
Atmosphere
Symbols
Events
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Important
Profitable
Distinctive
Differences Worth Establishing
Affordable
Superior
Preemptive
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Perceptual Map
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Positioning Strategies

• Product Attributes

• Benefits, Problem Solutions Basic Needs

• Price Quality

• Specific Use

• Against Other Products

• Product User

• Against a Competitor