SEGMENTATION,

TARGETING AND
POSITIONING
 Company Segmentation
Objectives

Targeting Positioning

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 Company Segmentation
Objectives
Profit
and
Growth

Targeting Positioning

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 The Process Of STP

Segmented
Mass Market
Market

Positions
Target Occupied
Market by others

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 ADVANTAGES OF SEGMENTATION
A more precise definition of the
market.
A more effective Marketing
programme.
Better assessment of the
strengths and weaknesses of the
competition.
Better allocation of Marketing
resources.
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 Bases for Segmenting Consumer
Markets

Geographic
Region, City or Metro
Size, Density, Climate Demographic
Age, Gender, Family size
and Fife cycle, Race,
Occupation, or Income ...

Psychographic
Lifestyle or Personality

Behavioural
Occasions, Benefits,
Uses, or Attitudes
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 SEGMENTATION APPROACHES
ENDURING DYNAMIC
VARIABLES VARIABLES
(Consumer Characteristics/ (Consumer Responses/ Product-
Personal-Segment Bases) Related Bases)
 Geographic  Occasions
 Demographic  Benefits
 Psychographic
 User Status
 Usage Rate
 Loyalty Status
 Buyer Readiness Stage
 Attitude
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 The VALS Segmentation System
Innovators
Primary High Resources
Motivation High Innovation
Ideals Achievement Self-Expression

Thinkers Achievers Experiencers

Believers Strivers Makers

Low Resources
Survivors Low Innovation
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 SEGMENTATION VARIABLES
for Industrial Markets
 Demographic - Industry, Company size,
Location
 Operating Variables – Technology, User
Status, Customer capabilities
 Purchasing Approaches – Power
structure, Number of existing
relationships, General purchase policies
 Situational Factors – Urgency, Size of
order
 Personal Characteristics – Buyer-seller
similarity,
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Attitudes toward risk, Loyalty. 12
 Segments For the Toothpaste Market
The
The The
Sensory
Sociables Worriers
Segment
Main
Flavour,
Benefit Brightness Decay
Sought Product
of Teeth Prevention
Appearance
Demographic
characteristics

Psychographic
characteristics

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 Standard Procedure for
Segmentation and Targeting
Clear Identification of Marketing
Objective

Develop Initial Sementation

Sementation
Develop Sub-segments & Profile &
each Sub-segment Targeting

Identify Important Sub-segments

Develop Customised
Programmes for each
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 Approaches to Targeting

Market Mass Marketing

Org. Mktg Mix
As A Whole (Full Market Coverage)

Segment 1 Concentrated Marketing

Segment 2 Org. Mktg. Mix
(Single-Segment Concentration)
Segment 3

Segment 1 Multiple Segment Marketing

Segment 2
Mktg. Mix1, (Selective Specialisation:
Mktg Mix 2
& Mktg. Mix 3 Product/Market)
Segment 3

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