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Chapter 9:

Market
Segmentation,
Targeting and
Positioning
Chapter objectives
1. Define market segmentation, market
targeting and market positioning.
2. List and discuss the major bases for
segmenting consumer and industrial markets.
3. Explain how companies identify attractive
market segments and choose a market
coverage strategy.
4. Tell how companies can position their
products for maximum advantage in the
market place.
Markets
• Organization that sell to consumer and industrial markets
recognize that they cannot appeal to all buyers in those
markets or at least not to all buyers in the same way.
Mass Marketing
the seller mass produces, mass-distributors and mass-
promotes one product to all buyers.
Product-variety Marketing
the seller produces two or more products that have
different features, styles, quality and sizes.
Target Marketing
the sellers identities market segments, select one or more
of these segments and develops products and marketing mixes
tailored to each segment.
o They can adjust their prices, distribution channels and
advertising to reach the target market efficiently. Instead of
scattering their marketing effort (shotgun approach), they can
focus it on the buyers who have the greatest purchase interest
(rifle approach).

Market Targeting

• Identify bases for


segmenting the • Develop positioning for
market. each target segment.
• Develop measures • Develop marketing
• Develop profiles of mins for each target
resulting segments. of segments segment.
attractiveness.
• Select the target
segments(s).
Market
segmentation Market Positioning
Three Major steps(figure .1)
1. Market Segmentation
dividing a market into distinct groups of buyers who might
call for separate products or marketing mixes.
2. Market Targeting
evaluating each segments to enter.
3. Market Positioning
setting the competitive positioning for the product and a
detailed marketing mix.
Market Segmentation
• Markets consist of buyers and buyers differ in one or more
ways. They may differ in their wants, resources, locations,
buying attitudes and buying practices.

The General Approach To


Segmenting A Market
◦ Each buyer is potentially a separate market because of
unique needs and wants.
◦ Most sellers will not find a worthwhile to ‘’customize’’
their product to satisfy each specific buyers. Instead
the sellers looks for broad classes of buyers who
differ in the product needs or buying responses.
Different Segmentation
Of A Market
Bases For Segmenting
Consumer Markets
Geographic Segmentation
calls for dividing the market into different geographic
units such as nations, states, region, countries, cities or
neighborhoods. The company decides to operate in one or
few geographical areas or to operate in all areas but pay
attention to geographical differences in needs and wants.
Demographic Segmentation
• Consists of dividing the market into groups based on demographic
variables such as age, sex, family, size, family life cycle, income,
occupation, education, religion, race and nationality. Demographic
factors are the most popular bases for segmenting customer
groups.
Psychographic Segmentation
• Buyers are divided into different groups based on social class,
lifestyle, or personality characteristics. People in the same
demographic group can have very different psychographic
profiles.
Behavior Segmentation
• Buyers are divided into groups based on their knowledge,
attitude, use or response to a product.

• Marketing Targeting
Marketing segmentation reveals the market segment
opportunities facing the firm. The firm now has no decide on
how many segments to cover and how to identify the best
segments.
Undifferentiated Marketing
• The firm might decide to ignore market segment differences
and go after the whole market with one market offer.

• Differentiated Marketing
The firm may decide to target several market segments and
design separate offers to each.
Concentrated Marketing
• Many firms see a third possibility that is especially appealing
when company resources are limited. Instead of going after a
small share of a large market, the firm goes after a large share
of one or a few submarkets.
Market Positioning
• Once a company has decided which segments of the market it
will enter it must decide what position it wants to occupy in
those segments.

• Product Position
Is the way the product is defined by consumers on important
attributes- the place the product occupies on consumers’ minds,
relative to competing products.
Thank you for
Listening  

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