Market Segmentation, Targeting, Positioning, and Competition

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• Chapter 8
• Market Segmentation, Targeting, Positioning, and
  Competition

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LEARNING OBJECTIVES

• What are the different levels of market
  segmentation?
• How can a health care organization divide a
  market into segments?
• How can an organization choose the most
  attractive target markets?
• How can an organization choose and communicate an
  effective positioning in the market?
• How can the organization analyze the competitors
  strategies, objectives, strengths, and weaknesses?

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LO1. What are the different levels of market
segmentation?

• Four levels of micromarketing
• Segment
• Niche
• Local areas
• Individual
• Three patterns of market segmentation
• Homogenous preference
• Diffused preference
• Clustered preference

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LO1. What are the different levels of market
segmentation? (cont)

• Segmentation of consumer markets
• Geographic - geographic units
• Demographic - age, life cycle, etc
• Psychographic - life style, personalities, values
• Behavioral - knowledge, attitude, use, or response

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LO2. How can a health care organization divide a
market into segments?

• Business market segmentation
• Organization size
• Geographic location
• Interest profile
• Resource level
• Buying criteria
• Buying process

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LO3. How can an organization choose the most
attractive target markets?

• Segment must rate favorably in 5 areas
• Measurable
• Substantial
• Accessible
• Differentiable
• Actionable
• Decision must be based on
• Segments overall attractiveness
• Companys objectives and resources

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LO4. How can an organization choose and
communicate an effective positioning in the
market?

• Choose points-of-parity and points-of-difference
• Product differentiation
• Services differentiation
• Personnel differentiation
• Channel differentiation
• Image differentiation

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LO5. How can the organization analyze the
competitors strategies, objectives, strengths,
and weaknesses?

• Strategies - ask what range in the strategic
  group?
• Objectives - ask what is the competitor seeking
  and what drives the behavior
• Strengths - monitor all three
• Share of market
• Share of mind
• Share of heart
• Weaknesses - focus on one
• Strong versus weak
• Close versus distant
• Good versus bad

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LO5. How can the organization analyze the
competitors strategies, objectives, strengths,
and weaknesses?

• Competitive strategies depend upon the role each
  plays
• Market-leader
• Market challenger
• Market follower
• Market nicher

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CONCLUSION

• Success results from serving part of a market
  well instead of the whole market poorly.
• Market segments can be targeted in many ways.
• Positioning is based on points-of-parity and
  points-of-difference, based on product, service,
  personnel, channels, or image.