Segmentation, Targeting,

and Positioning
 Definition
Market Segmentation:
 Dividing a market into distinct
groups with homogenous needs,
characteristics,
or behavior who
might require
separate products
or marketing
mixes.
 Steps in Market
Segmentation, Targeting,
and Positioning
 Market Segmentation
Key Topics Geographical
segmentation
Segmenting  Marketing mixes are
customized
Consumer Markets geographically
Segmenting Demographic
Business Markets segmentation
Segmenting Psychographic
International segmentation
Markets Behavioral
Requirements for segmentation
Effective Using multiple
Segmentation segmentation variables
Market Segmentation
Geographic
Segmentation Variables
World Region City or
or Country Metro Size
India Regions Neighborhood
State Density
City Climate
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 Discussion Question

Geographical climate is
a legitimate means of
segmentation for many
products or services.
Name several examples of
products for which need
(and demand) would vary
on a geographical basis.

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 Market Segmentation
Key Topics Geographical segments
Demographic
Segmenting segmentation
Consumer Markets  Most popular type
 Demographics are closely
Segmenting related to needs, wants
Business Markets and usage rates
Segmenting Psychographic
International segmentation
Markets Behavioral
Requirements for segmentation
Effective Using multiple
Segmentation segmentation variables
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Market Segmentation
Demographic
Segmentation Variables
Age Occupation
Gender Education
Family size Religion
Family life cycle Generation
Income Nationality
Race
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 Market Segmentation
Key Topics Geographic segments
Demographic
Segmenting segmentation
Consumer Markets Psychographic
Segmenting segmentation
Business Markets  Lifestyle, social class,
and personality-based
Segmenting segmentation
International Behavioral
Markets segmentation
Requirements for Using multiple
Effective segmentation
Segmentation variables
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 Market Segmentation
Key Topics Geographic segments
Demographic
Segmenting segmentation
Consumer Markets Psychographic
Segmenting segmentation
Business Markets Behavioral
Segmenting segmentation
International  Typically done first
Markets
Using multiple
Requirements for segmentation
Effective
variables
Segmentation
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Market Segmentation
Behavioral
Segmentation Variables

Occasions Loyalty Status

Benefits Readiness Stage
User Status Attitude Toward
User Rates the Product

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 Market Segmentation
Key Topics Geographic segments
Demographic
Segmenting segmentation
Consumer Markets Psychographic
Segmenting segmentation
Business Markets Behavioral
Segmenting segmentation
International Using multiple
Markets
segmentation
Requirements for variables
Effective
Segmentation
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 Market Segmentation
Key Topics Demographic segmentation
 Industry, company size,
location
Segmenting
Operating variables
Consumer Markets  Technology, usage status,
Segmenting customer capabilities
Business Markets Purchasing approaches
Segmenting Situational factors
International  Urgency, specific
application, size of order
Markets
Personal characteristics
Requirements for  Buyer-seller similarity,
Effective attitudes toward risk, loyalty
Segmentation
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 Market Segmentation
Key Topics Geographic segmentation
 Location or region

Segmenting Economic factors

 Population income or level of
Consumer Markets economic development
Segmenting Political and legal factors
Business Markets  Type / stability of
Segmenting government, monetary
regulations, amount of
International bureaucracy, etc.
Markets Cultural factors
Requirements for  Language, religion, values,
Effective attitudes, customs,
Segmentation behavioral patterns

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 Market Segmentation
Key Topics Measurable
 Size, purchasing power, and
profile of segment
Segmenting
Accessible
Consumer Markets  Can be reached and served
Segmenting Substantial
Business Markets  Large and profitable enough
Segmenting to serve

International Differentiable
 Respond differently
Markets
Actionable
Requirements for
 Effective programs can be
Effective developed
Segmentation
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 Target Marketing

Evaluating Market Segments

 Segment size and growth
 Segment structural attractiveness
 Level of competition
 Substitute products
 Power of buyers
 Powerful suppliers

 Company objectives and resources

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Target Marketing
Strategies

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 Target Marketing
Choosing a Target-
Marketing Strategy
Requires Consideration of:
 Company resources
 The degree of product variability
 Product’s life-cycle stage
 Market variability
 Competitors’ marketing
strategies

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 Positioning
Positioning:
 The place the product occupies in
consumers’ minds relative to competing
products.
 Typically defined by consumers on the basis
of important attributes.

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 Positioning
Choosing a Positioning Strategy:
 Identifying possible competitive
advantages -- many potential
sources of differentiation exist:
 Products
 Services
 Channels
 People
 Image

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Porsche is
positioned on
the basis of
performance
and freedom.

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 Positioning

Choosing a Positioning Strategy:

 Choosing the right competitive
advantage
 How many differences to promote?
• Unique selling proposition
• Positioning errors to avoid
 Which differences to promote?

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 Positioning errors

Under-positioning
Over-positioning
Confused-Positioning

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 Positioning
Criteria for Meaningful Differences

Important Distinctive
Superior Communicable
Preemptive Affordable
Profitable
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Possible Value Propositions

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THANK YOU!

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