Segmentation, Targeting, and

Positioning: Building the Right

Relationships with the Right
Customers
Steps in Market Segmentation,
Targeting, and Positioning

6-2
Ways to Segment a Market
• Geographic
– Country, region, city, climate
• Demographic
– Age, gender, income, occupation, family
• Psychographic
– Social class, lifestyle, personality
• Behavioral
– Occasions, benefits, user status, usage rate, Buyer
readiness, loyalty status

6-3
Requirements for Effective
Segmentation
Measurable Accessible

Substantial

Differentiable Actionable

6-4
 Evaluating Market Segments
• Segment Size and Growth
– Analyze current segment sales, growth rates, and
expected profitability.
• Segment Structural Attractiveness
– Consider effects of: competitors, existence of
substitute products, and the power of buyers &
suppliers.
• Company Objectives and Resources
– Examine company skills & resources needed to
succeed in that segment.
6-5
Target Marketing Strategies

6-6
 Positioning for Competitive
Advantage

• Product’s position is the way the product is

defined by consumers on important
attributes.
• The place the product occupies in
consumers’ minds relative to competing
products.

6-7
 Positioning Map

Positioning
map for large
luxury SUVs

6-8
Identifying Possible Competitive
Advantages

• Key to winning target customers is to

understand their needs better than
competitors do and to deliver more value.
• Competitive advantage – extent to
which a company can position itself as
providing superior value.

6-9
Identifying Possible Competitive
Advantages
Product Services
Differentiation Differentiation
(e.g., consistency, (e.g., speed, convenience,
durability, reliability, careful delivery)
repairability)

Channel
Differentiation
Image People
Differentiation Differentiation
(e.g., convey benefits and (e.g., hiring, training
positioning) better people than
competitors)

6-10
Choosing Right Competitive Advantages

Important
Profitable Distinctive

Affordable Superior

Communicable
Preemptive

6-11