Date post:20-Jan-2015
View:1,203 times
Download:2 times
Share this document with a friend
  • 1. Segmentation, Targeting & Positioning

2. Overview:Segmentation, Targeting & Positioning Why do this? 3. Market Segmentation - Principles

  • Segmentation Variables
    • Geographic
    • Demographic
    • Psychographic
    • Behavioral
    • Other (anything!)
  • No single best way to segment a market.
  • Often best to combine variables and identify smaller, better-defined target groups.

4. Geographic Segmentation

  • Divide markets into different geographic units.
  • Examples:
    • World Region or Country: North America, Western Europe, European Union, Pacific Rim, Mexico, etc.
    • Country Region:Pacific, Mountain, East Coast, etc.
    • City or Metro Size: New York, San Francisco
    • Population Density: rural, suburban, urban
    • Climate: northern, southern, tropical, semi-tropical

5. Demographic Segmentation

  • Use Differences in:
    • age, gender, family size, family life cycle, income, occupation, education, race, and religion
    • Most frequently used segmentation variable
      • Ease of measurement and high availability.
    • Usually theworstvariable to use.

6. Psychographic Segmentation

    • Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics.

People in the same demographic classificationoften have very different lifestyles and personalities. 7. Behavioral Segmentation

  • Occasion
    • Special promotions & labels for holidays.
    • Special products for special occasions.
  • Benefits Sought
    • Different segments desire different benefits from the same products.
  • Loyalty Status
    • Nonusers, ex-users, potential users, first-time users, regular users.
  • Usage Rate
    • Light, medium, heavy.

8. Loyalty Status Segmentation Switchers Shifting loyals Split loyals Hard-core 9. User & Loyalty Status Segmentation 10. Geodemographic Segmentation

  • PRIZM, by Claritas
    • Organized by ZIP code
    • Based on U.S. Census data
    • Profiles on 260,000+ U.S. neighborhoods
    • 62 clusters or types

11. Claritas Prizm 12. Requirements for Effective Segmentation

  • Segments must be
    • Measurable
    • Accessible
    • Substantial
    • Differentiable
    • Actionable

Lefties are hard to identify and measure, so few firms target this segment. 13.

  • Segment Size and Growth Potential
    • Sales, profitability and growth rates
  • Segment Structural Attractiveness
    • Competition, substitute products,
    • buyers & supplier power, new entrants (Porters Five Forces)
  • Company Objectives and Resources
    • Core competencies
    • What business do we want to be in?

Evaluating Market Segments 14. Targeting Segments - Overview 15. Market Preference Patterns 16.

    • Ignores segmentation opportunities

Undifferentiated (Mass) Marketing 17. Differentiated (Segmented) Marketing

    • Targets several segments and designs separate offers for each.
    • Coca-Cola (Coke, Sprite, Diet Coke, etc.)
    • Procter & Gamble (Tide, Cheer, Gain, Dreft, etc.)
    • Toyota (Camry, Corolla, Prius, Scion, etc.)

18. Question du Jour

  • Shouldthe samecompany produce and market brands that compete with each other?

19. Niche Marketing

    • Targets one or a couple small segments
    • Niches have very specialized interests


  • Tailoring products and marketing programs to suit the tastes of specific individuals and/or locations.

Micromarketing 21. Flexible Marketing Offerings

  • Naked/Core solution
    • Product and service elements that all segment members value
  • Discretionary options
    • Some segment members value
    • Options may carry additional charges

22. Patterns of Target Market Selection:Product x Market Matrices 23.

  • Controversies and concerns
    • Targeting the vulnerable and disadvantaged
      • Cereal, Cigarettes, Alcohol, Fast-food
    • The Catch-22 of Targeting
      • Psychological Reactance
      • Failure to target seen as prejudice

Socially Responsible Targeting 24.

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

Positioning 25. eBays positioning:No matter what it is, you can find it on eBay! Positioning Example 26. To(target segment and need)our(brand)is a(concept)that(point-of-difference). 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. 27. Positioning Maps:Luxury SUVs Price vs. Orientation Dimensions 28.

  • Competitive advantages
  • Points of Parity
  • Points of Difference => Differentiation
  • Positioning results from differentiation and competitive advantages.
  • Positioning may change over time.

Positioning Strategy 29. Sources of Differentiation

    • Product Design
    • Quality
    • Additional Services
    • Image
    • People (Staff)
    • Price
    • Other

6- 30. Choosing the Right Competitive Advantages

  • The best competitive advantages are
    • Important
    • Distinctive
    • Superior
    • Communicable
    • Pre-emptive
    • Affordable (to company and consumer)
    • Profitable
  • Moral:Avoid meaningless differentiation.


  • Under-positioning :
    • Not positioning strongly enough.
  • Over-positioning :
    • Giving buyers too narrow a picture of the product.
  • Muddled Positioning :
    • Leaving buyers with a confused image of the product.

Positioning Errors 32. Generic Product Positions& Value Propositions 33. Question du Jour

  • Which is more important:ProductorPositioning ?

34. In-class Activity

  • Describe how each of the following brands, companies, or products is positioned:

35. In-class Activity, Part 2

  • Choose one of the companies/brands and
    • Identify relevant direct competitors
    • Choose the two dimensions that are most important to consumers
    • Develop a perceptual positioning map
    • Are there any opportunities in this category?

36. In-class Activity, Part 3

  • Choose a company and invent a segmentation scheme for that companys customers using the variables we discussed in class.

37. In-class Activity Developing a Segmentation Scheme

  • Develop a PSYCHOGRAPHIC/USAGE segmentation scheme for each of the following types of consumers.
    • Segment the market into three or more substantive groups.
    • Be sure to think of the keypsychological/usagedrivers of consumption.
    • Name your segments the more creative, the better!
  • Consumers
    • Vacationers
    • Internet Users
    • Restaurant Patrons
Popular Tags:

Click here to load reader

Embed Size (px)