Kotler, P.

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MARKET SEGMENTATION, TARGETING POSITIONING

• Kotler, P. Armstrong, G., 2006, Principles of
  Marketing, New Jersey Pearson Education, Inc.,
  Ch.7

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THE STEPS

• Market segmentation
• Identify bases for segmenting the market
• Develop segment profiles

• Target marketing
• Develop measure of segment attractiveness
• Select target segments

• Market positioning
• Develop positioning for target segments
• Develop a marketing mix for each segment

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DEFINITIONS

• Market segmentation is dividing a market into
  smaller groups of buyers with distinct needs,
  characteristics, or behaviors who might require
  separate products or marketing mixes.
• Target marketing is the process of evaluating
  each market segments attractiveness and
  selecting one or more segments to enter.
• Market positioning is the process of arranging
  for a product to occupy a clear, distinctive, and
  desirable place relative to competing products in
  the mind of target consumers.

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SEGMENTING CONSUMER MARKETS

• GEOGRAPHIC SEGMENTATION. Dividing a market into
  different geographical units.
• DEMOGRAPHIC SEGMENTATION. Dividing a market into
  groups based on demographic variables.
• PSYCHOGRAPHIC SEGMENTATION. Dividing a market
  into based on social class, lifestyle, or
  personality characteristics.
• BEHAVIORAL SEGMENTATION. Dividing a market into
  based on consumer knowledge, attitude, use, or
  response to a product.

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VALS Life Style Classifications
High Resources
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VALUE LIFE-STYLES (VALS)

• SURVIVORS elderly, passive people who are
  concerned about change. Loyal to their favorite
  brands.
• INNOVATORS successful, sophisticated, active
  people with high self-esteem. Purchases often
  reflect cultivated tastes for relatively upscale,
  niche-oriented products and services.
• EXPERIENCERS young, enthusiastic, impulsive
  people who seek variety and excitement. Spend a
  comparatively high proportion of income on
  fashion, entertainment, and socializing.
• MAKERS practical, down-to-earth,
  self-sufficient people who like to work with
  their hands. Favor product with a practical or
  functional purpose.

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VALUE LIFE-STYLES (VALS)

• ACHIEVERS successful goal-oriented people who
  focus on career and family. Favor premium
  products that demonstrate success to their peers.
• STRIVERS trendy and fun-loving people who are
  resource-constrained. Favor stylish products that
  emulate the purchase of those with greater
  material wealth.
• THINKERS mature, satisfied, and reflective
  people who are motivated by ideals and value
  order, knowledge, and responsibility. Favor
  durability, functionality, and value in products.
  
• BELIEVERS conservative, conventional, and
  traditional people with concrete beliefs. Favor
  familiar products and are loyal to established
  brands.

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INDONESIAN CONSUMER MARKET SEGMENTS

• ESTABLISHED CONFIDENT (ORANG ALIM)
• THE OPTIMISTIC FAMILY PERSON (IBU PKK)
• THE CHANGE-EXPECTING LAD (ANAK NONGKRONG)
• CHEERFUL HUMANIST (LEMBUT HATI)
• INTROVERT WALLFLOWER (PASRAH)
• THE SAVVY CONQUEROR/CITY SLICKERS (MAIN UNTUK
  MENANG)
• THE NETWORKING PLEASURE SEEKER (GAUL-GLAM)
• THE SPONTANEOUS FUN-LOVING (BINTANG PANGGUNG)
• (SUMBER LOWE INDONESIA)

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INDONESIAN CONSUMER MARKET SEGMENTS ORANG ALIM
(ESTABLISHED CONFIDVENT)

• Demografi Umumnya laki-laki, urban, usia matang,
  SES tinggi dan berpendidikan tinggi.
• Karakteristik
• Ramah dan menyukai keharmonisan di lingkungan
  sekitarnya.
• Merasa senang jika dapat menolong orang lain.
• Konservatif dan normatif
• Bagi mereka sangat penting untuk dihargai dan
  dinaggap bertanggung-jawab oleh lingkungannya.
• Umumnya sangat percaya diri dan merasa berada
  pada jalur yang benar sesuai dengan yang mereka
  inginkan.
• Tidak menyukai TV dan iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS IBU PKK
(THE OPTIMISTIC FAMILY PERSON)

• Demografi Umumnya wanita, rural, usia matang,
  SES rendah.
• Karakteristik
• Menjalani hidup dengan bersahaja, realistik,
  kekeluargaan dan normatif.
• Menyukai memasak sebagai hobi tidak hanya sebagai
  satu kewajiban.
• Hidupnya hanya untuk keluarga dan orang di
  sekelilingnya.
• Di waktu senggang, melakukan tidur siang,
  mengunjungi keluarga, berekreasi bersama
  keluarga, window shopping dan menyukai iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS ANAK
NONGKRONG (THE CHANGE-EXPECTING LAD)

• Demografi Umumnya laki-laki, urban, usia muda,
  SES rendah.
• Karakteristik
• Hidupnya berorientasi pada teman-teman/kelompok.
  Bagi mereka All is one and one is all.
• Menurut mereka, teman adalah segalanya.
• Tidak terlalu optimis akan masa depan mereka
  namun mengharapkan perubahan.
• Cukup toleran terhadap seks.
• Suka menonton TV, mendengarkjan musik dan
  mengamati iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS LEMBUT
HATI (CHEERFUL HUMANIST)

• Demografi Umumnya perempuan, rural, usia muda,
  SES rendah.
• Karakteristik
• Cenderung tidak suka menjadi pusat perhatian
  walaupun diterima di lingkungannya.
• Menyukai lingkungan yang damai dan penuh harmoni.
• Sangat menaruh perhatian dan berempati pada
  lingkungan dan orang-orang di sekitarnya.
• Merasa dihargai jika lingkungannya menerima apa
  yang mereka lakukan.
• Tidak terlalu suka menonton TV dan memperhatikan
  iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS PASRAH
(INTROVERT WALLFLOWER)

• Demografi Perempuan, rural, usia matang, SES
  rendah dan berpendidikan rendah.
• Karakteristik
• Tidak menginginkan banyak hal dalam hidupnya atau
  bisa dibilang bukan tipe pemimpin.
• Umumnya introvert, memiliki sedikit teman tapi
  sangat loyal.
• Bijaksana, rendah hati dan pekerja keras.
• Tidak terlalu optimis akan masa depan mereka.
• Memasak dan berkebun menjadi hobi mereka, selain
  gemar menonton TV, mendengarkan musik dan
  religius.

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MAIN UNTUK MENANG (THE SAVVY CONQUERER/CITY
SLICKERS)

• Demografi Umumnya laki-laki, urban (Jakarta A),
  usia matang, SES tinggi dan berpendidikan tinggi.
• Karakteristik
• Tujuan hidupnya adalah kejayaan dan kemakmuran.
• Menyenangi kompetisi dan senag dikagumi orang
  lain.
• Cenderungdominan dalam pergaulan.
• Senang bertindak (man of action), menyenangi
  tindakan spontan dan menantang.
• Suka fashion, menikmati makanan, menyukai iklan
  dan produk serta pandai berfilosofi.
• Menyukai travelling, penikmat makanan di luar
  rumah, menyenangi iklan dan politik.

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GAUL-GLAM (THE NETWORKING PLEASURE SEEKER)

• Demografi Umumnya perempuan, urban (Jakarta A),
  SES tinggi dan berpendidikan rata-rata.
• Karakteristik
• Sangat memuja materi dan ingin bisa tampil dalam
  majalah.
• Kerap tampil di berbagai acara informal untuk
  menambah dan membina jaringan/nerworking.
• Bagi mereka, berteman adalah investasi.
• Mereka menunggu terjadinya perubahan di
  Indonesia.
• Mengikuti setiap perkembangan fashion, menyukai
  iklan dan mengamati bidang-bidang lain seperti
  lingkungan, sejarah dan ilmu-ilmu sosial.

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BINTANG PANGGUNG (THE SPONTANEOUS FUN-LOVING)

• Demografi Umumnya laki-laki, urban, usia matang
  dan SES tinggi.
• Karakteristik
• Suka diperhatikan seperti halnya seorang bintang.
• Suka bergaul, pamer dan menyenangi aktivitas di
  luar rumah seperti pesta dan kumpul-kumpul.
• Menyukai hal-hal baru yang sedang menjadi trend
  seperti fashion,gadget dan hal-hal baru lain.
• Sangat menikmati hidup.

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BEHAVIORAL SEGMENTATION

• OCCATION SEGMENTATION. Dividing a market into
  groups according to occasions when buyers get the
  idea to buy, actually make their purchase, or use
  the purchased item.
• BENEFIT SEGMENTATION. Dividing a market into
  groups according to the different benefits that
  consumers seek from the product.
• USER STATUS. Dividing a market into groups of
  non-users, ex-users, potential users, first-time
  users, and regular users of a product.
• USAGE RATE. Dividing a market into light, medium,
  and heavy product users.
• LOYALITY STATUS. Dividing a market into groups
  based on consumers degree of brand loyalty
  switchers, shifting loyalists, split loyalists,
  and hard-core loyalists.

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BUSINESS MARKET SEGMENTATION

• MACRO/MICRO SEGMENTATION PROCESS
• DEMOGRAPHICS
• OPERATING VARIABLES
• PURCHASING APPROACH
• SITUATION FACTORS
• PERSONAL CHARACTERISTICS

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BUSINESS MARKET SEGMENTATION

• MACRO VARIABLES
• INDUSTRY CHARACTERISTICS mining, agriculture,
  etc.
• ORGANIZATIONAL CHARACTERISTICS
• DEMOGRAPHICS e.g. customers level of risk
  taking, desire to innovate, types of supplier
  relationships, number of suppliers,
• SIZE LOCATION e.g. business volume, growth
  record, convenient to transportation, degree of
  operational decentralization.
• ECONOMIC FACTORS e.g. state of market economy
  industry growth rate cyclicality customers
  market share, ability desire to expand.

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BUSINESS MARKET SEGMENTATION

• MACRO VARIABLES (contd)
• COMPETITIVE FORCES e.g. number strength of
  competitors, ease of entry into market, ease of
  penetrating potential customers.
• PURCHASING TACTICS e.g. decision makers their
  priorities, centralized or decentralized, major
  influences on final purchase decision.
• END USE MARKETS e.g. manufacturers of
  end-products, commercial contractors, wholesalers
  retailers, banks other financial
  institutions.
• PRODUCT APPLICATION e.g. component in specific
  end-products, consumer home or recreational
  usage, resale, etc.

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BUSINESS MARKET SEGMENTATION

• MICRO VARIABLES
• ORGANIZATIONAL VARIABLES
• PURCHASING SITUATION/PHASE
• CUSTOMER EXPERIENCE (or PLC CONSIDERATIONS)
• CUSTOMER INTERACTION NEEDS
• CUSTOMER BENEFITS
• ORGANIZATIONAL CAPABILITIES

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BUSINESS MARKET SEGMENTATION

• MICRO VARIABLES (Contd)
• PURCHASE SITUATION VARIABLES
• INVENTORY REQUIREMENTS
• PURCHASE IMPORTANCE
• PURCHASING POLICY
• PURCHASING CRITERIA
• STRUCTURE OF THE BUYING CENTER
• INDIVIDUAL VARIABLES
• PERSONAL CHARACTERISTICS
• POWER STRUCTURES

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REQUIREMENTS for EFFECTIVE SEGMENTATION

• MEASURABLE
• ACCESSIBLE
• SUBSTANTIAL
• DIFFERENTIABLE
• ACTIONABLE

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TARGET MARKETING

• EVALUATING MARKET SEGMENS
• SEGMENT SIZE GROWTH
• SEGMENT STRUCTURAL ATTRACTIVENESS
• COMPANY OBJECTIVE RESOURCES
• SELECTING TARGET MARKET SEGMENTS
• UNDIFFERENTIATED/MASS MARKETING
• DIFFERENTIATED MARKETING
• CONCENTRATED MARKETING
• MICROMARKETING
• LOCAL MARKETING
• INDIVIDUAL MARKETING

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POSITIONING

• POSITIONING
• COMMUNICATION DIFFERENTIATION
• IMAGE
  COMPETITIVE
• ADVANTAGES
• 
  
• POSITIONING
• 
  positioning STATEMENT
• 
  process

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POSITIONING

• DIFFERENTIATION
• PRODUCT SERVICES
• DISTRIBUTION
• PERSONNEL
• IMAGE (EVENTS/SPONSORSHIPS)
• COMPETITIVE ADVANTAGE. An advantage over
  competitors gained by offering consumers greater
  value, either through lower prices or by
  providing more benefits that justify higher
  prices.
• HOW MANY DIFFERENCES TO PROMOTE?
• WHICH DIFFERENCES TO PROMOTE?

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POSITIONING

• COMPETITVE ADVANTAGES CRITERIA
• IMPORTANT. Delivers a highly valued benefit to
  target buyers.
• DISTINCTIVE. Competitors to not offer the
  advantage.
• SUPERIOR
• COMMUNICABLE and VISIBLE to buyers.
• PREEMPTIVE. Competitors cannot easily copy the
  advantage.
• AFFORDABLE. Buyer can afford to pay for the
  advantage.
• PROFITABLE

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POSITIONING

• POSITIONING STATEMENT. A statement that
  summarizes company or brand positioning it
  takes this form To (target segment and need) our
  (brand) is (concept) that (point-of-difference).
• To young, active soft-drink consumers who have
  little time for sleep, Mountain Dew is the soft
  drink that gives you more energy than any other
  brand because it has the highest level of
  caffeine. With Mountain Dew, you can stay alert
  and keep going even when you havent been able to
  get a good nights sleep.
• VALUE PROPOSITION. The full positioning of a
  brand the full mix of benefits upon which it is
  positioned.

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POSITIONING

• POSITIONING
• STATEMENT
• FOR UPSCALE AMERICAN FAMILIES, VOLVO IS THE
  AUTOMOBILE THAT OFFERS THE UTMOST IN SAFETY AND
  DURABILITY

• VALUE PROPOSITION
• TARGET MARKET UPSCALE AMERICAN FAMILIES
• BENEFITS OFFERED SAFETY, DURABILITY
• PRICE RANGE 20 PREMIUM OVER SIMILAR CARS

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POSITIONING

• ISSUES
• OVER-POSITIONING when customers have too narrow
  an understanding of the company, product, or
  brand.
• UNDER-POSITIONING when customers only vague
  ideas about the company and its products and do
  not perceive anything distinctive about them.
• CONFUSED POSITIONING when frequent changes and
  contradictory messages confuse customers
  regarding the positioning of the brand.
• DOUBTFUL POSITIONING when the claims made for
  the product or brand are not regarded as credible
  by the customer.
• (Cravens, D.W. Piercy, N.F., 2006, Strategic
  Marketing, New York McGraw-Hill/Irwin, p.185)