Segmentation, Targeting, and

Positioning

If you’re not thinking segments, you’re not thinking. To think segments means you have to think about what drives customers, customer groups, and the choices that are or might be available to them.

—Levitt, Marketing Imagination

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Market Segmentation

Segmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation

Geographical segmentation Marketing mixes are

customized geographically

Demographic segmentationPsychographic segmentationBehavioral segmentationUsing multiple segmentation variables

Key Topics

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Market SegmentationGeographic

Segmentation VariablesCity or Metro SizeNeighborhoodDensityClimate

World Region or CountryCountry RegionCity

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Market Segmentation

Segmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation

Geographical segmentsDemographic segmentation Most popular type Demographics are closely

related to needs, wants and usage rates

Psychographic segmentationBehavioral segmentationUsing multiple segmentation variables

Key Topics

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Market SegmentationDemographic

Segmentation VariablesAgeGenderFamily sizeFamily life cycleIncome

OccupationEducationReligionNationalityEthnicity

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Market Segmentation

Segmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation

Geographic segmentsDemographic segmentation Psychographic segmentation Lifestyle, social class,

and personality-based segmentation

Behavioral segmentationUsing multiple segmentation variables

Key Topics

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Market Segmentation

Segmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation

Geographic segmentsDemographic segmentation Psychographic segmentationBehavioral segmentation Based on knowledge,

attitude, use or response to a product

Using multiple segmentation variables

Key Topics

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Behavioral Segmentation VariablesOccasions: According

to occasions buyer get the idea to buy or use the purchased item. Benefits sought: According to different benefits consumers seek from the product.User Status: Nonusers, ex-users, potential users, first-time users & regular users.

User Rates: Light, medium & heavy product users.Loyalty Status: Loyalty to brands, stores & companies can be a base. Consumers can be somewhat loyal & completely loyal

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Market Segmentation

Segmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation

Geographic segmentsDemographic segmentation Psychographic segmentationBehavioral segmentationUsing multiple segmentation variables

Key Topics

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Market Segmentation

Segmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation

Demographic segmentation Industry, company size,

locationOperating variables Technology, usage status,

customer capabilitiesSituational factors Urgency, specific

application, size of orderPersonal characteristics Buyer-seller similarity,

attitudes toward risk, loyalty

Key Topics

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Market Segmentation

Segmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation

Geographic segmentation Location or region

Economic factors Population income or level

of economic developmentPolitical and legal factors Type / stability of

government, monetary regulations, amount of bureaucracy, etc.

Cultural factors Language, religion, values,

attitudes, customs, behavioral patterns

Key Topics

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

strategiesSocially Responsible Target Marketing

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PositioningPositioning: The place the product occupies in

consumers’ minds relative to competing products.

Typically defined by consumers on the basis of important attributes.

Implanting the brand’s unique benefits & differentiation in customers mind

Perceptual Positioning Maps

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PositioningCriteria for Meaningful Differences

ImportantSuperior

DistinctiveCommunicableAffordableProfitable

PROCESS OF MARKET SEGMENTATION

1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Selection Criteria

4. Select TargetSegment(s)

5. Develop Positioningfor Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation

No Market Segmentation

Segmented by Gender

Segmented by Age

PositioningAct of designing the company’s offering and image to occupya distinctive place in the mind ofthe target market.

Positioning provides synergy among 4Ps.

The place a product occupies in consumers’ minds relative to competing products.

Choosing a Positioning Strategy

Step 1. Identifying Possible Competitive Advantages Step 2. Selecting

the Right Competitive Advantage Step 3.

Communicating and Delivering the Chosen Position

eBay’s positioning: No matter what “it” is, you can find “it” on eBay!

Positioning Example

“To busy mobile professionals who need to always be in the loop, Blackberry is a wireless connectivity solution that allows you to stay connected to people and resources while on the go more easily and reliably than the competing technologies.”

Positioning Example

Positioning Example