1. chapter 4 MARKET SEGMENTATION, TARGETING AND POSITIONING
part two: making sense of markets
chapter 4 MARKET SEGMENTATION, TARGETING AND POSITIONING

2. an opening challenge
You are the marketing director of a loss-making brewery. You need to develop new products to revitalise the business but you do not have the resources to launch a full range.
How will you choose what type of beer to sell and to whom?

3. agenda market selection market segmentation targeting strategies
positioning

4. market attractiveness
market opportunity
competitive advantage
the objectives of the organisation

5. segmentation, targeting and positioning
market segmentation
targeting
positioning

6. market segmentation and targeting: why do it?
many markets are demand-driven
consumers and customers are more demanding
few mass markets remain
markets are fragmenting

7. what is market segmentation?
‘the process of dividing a total market into subgroups (segments) such that each segment consists of buyers and users who share similar characteristics but are different from those in the other segments’ (Masterson and Pickton, 2014)
ref needs a page no. (glossary)

8. criteria for determining good market segments
measurable
homogeneous
heterogeneous
substantial
accessible
operational

9. consumer segmentation bases
demographic
socio-economic or social grading
geographic
geo-demographic
psychographic
mediagraphic
behavioural

10. life-stage segments (BRMB-TGI)
fledglings
flown the nest
nest builders
mid-life dependents
unconstrained couples
playschool parents
primary school parents
secondary school parents
hotel parents
senior sole decision makers
empty nesters
non-standard families
unclassified

11. examples of behavioural segmentation bases
purchase occasion
benefits sought
usage rate
user status
readiness stage
attitude to product
involvement
adopter type
loyalty status

12. using multiple segmentation variables AQ – re-set figure type

13. organisational segmentation bases
macro-segmentation
geographic
type of organisation
industry grouping/business sector
customer size

14. organisational segmentation bases
micro-segmentation
user status
trade category
benefits sought
loyalty status
readiness stage
adopter type
purchasing practices
buy class

15. nested approach to B2B market segmentation AQ – re-set figure type

16. target marketing (targeting)
‘the selection of one or more market segments towards which marketing efforts can be directed’ (Masterson and Pickton, 2014, glossary)

17. targeting strategies AQ – re-set figure type

18. evaluating a segment for targeting
sufficient current and potential sales/profits?
potential for sufficient future growth?
not over-competitive?
no excessive barriers to entry or exit?
unsatisfied needs that the company can serve well?

19. positioning
‘the place a brand is perceived to occupy in the minds of the target market relative to other competing brands’ (Masterson and Pickton, 2010: 148)

20. multi-attribute mapping AQ – re-set figure type

21. perceptual mapping AQ – re-set figure type

22. positioning strategies
attributes/product features
price/quality
usage occasions
benefits or needs
user
competitive
against another brand
a different product class

23. re-positioning e.g. McDonalds have been trying to move to a healthier
position in people’s perceptions
(photo courtesy of Dave Pickton)

24. five-stage process identify the total market identify market segments
select target market segment(s)
establish competitors’ positions
establish own position

25. summary markets are people, not products
products should be targeted at specific market groups (segments)
use multi-variable segmentation
opportunities for differentiation
develop clear positioning

26. reference
Masterson, R. and Pickton, D. (2014) Marketing: An Introduction, 3rd edn. London: SAGE.