1. Marketing Segmentation Market Attractiveness Positioning
GLOBAL MARKETING
Marketing Segmentation
Market Attractiveness
Positioning

2. What is Market Segmentation?
Process of dividing a potential market into distinct subsets of consumers with common needs or characteristics.
Separating a heterogeneous market into smaller homogeneous units.

3. Important Elements of Market Segmentation
Each market segment has unique needs and wants and will have a unique demand curve.
Each market segment requires its own marketing strategy and marketing plan.

4. Market segmentation produces increased costs to the firm in the short run.
Increased costs are generally offset by increasing sales in the long run.

5. The Segmentation Process
Needs-Based
Segmentation

6. The Segmentation Process
Needs-Based
Segmentation
Segment
Identification

7. Segmentation Bases Demographic Geographic Age Country Sex Region
Income
Education
Occupation
Race
Family life cycle
Geographic
Country
Region
County size
SMSA population
Density

8. Segmentation Bases Psychographic Behavioralistic Social class
Personality
Lifestyle
Activities, interests, & opinions (AIO’s)
Behavioralistic
Decision unit
Usage rate
Readiness
Benefits sought
Occasion
Brand loyalty

9. Global Segmentation Global Scan Strivers
Median age of 31; hectic lives. Driven to achieve success. Materialistic pleasure seekers; time & money in short supply.
Achievers
Older than strivers; affluent; assertive. Upwardly mobile, having already attained success. Status-conscious, value quality.
Pressured
Women of all ages; financial and family pressures; overwhelming life problems
Adapters
Older people; content with their lives. Maintain values while keeping an open mind about change.
Traditionals
Rooted to the past; clings to cultural heritage and values.

10. Euroconsumer Study (DMBB)
Successful idealists
Have achieved professional & material success, but also maintain commitment to abstract or socially responsible ideals.
Affluent materialists
Status-conscious up and comers; use conspicuous consumption.
Comfortable belongers
Conservative, mostly comfortable with familiar.
Disaffected survivors
Lack power and affluence; tend to be either resentful or resigned. Concentrated in high crime, urban inner-city neighborhoods.

11. Young & Rubicam’s Cross-Cultural Consumer Characterizations (4Cs)
Constrained
Resigned poor
Struggling poor
Middle majority
Mainstreamers
Aspirers
Succeeders
Innovators
Transitionals
Reformers

12. The Segmentation Process
Needs-Based
Segmentation
Segment
Identification
Segment
Attractiveness

13. Market Attractiveness
Market attractiveness represents the degree of market opportunity offered by a market segment and the ability of the firm to meet the segment’s needs within a competitive setting.
Select segment(s) that offer best opportunity for profits.

14. The Segmentation Process
Needs-Based
Segmentation
Segment
Identification
Segment
Attractiveness
Segment Positioning
Strategy

15. Positioning
Match offerings of firm to the needs and wants of market segments.
Effective positioning involves understanding customers’ perceptions about both the psychological and physical characteristics of offerings.
Positioning starts with a product. But positioning is not what you do to a product—it’s what you do to the mind of the customer. That is, you position the product in the mind of the customer.

16. Positioning Strategy
Learn the customer’s viewpoint. Create positioning statement based on unique customer needs.
Primary Needs
Articulated Needs
Exciting Needs

17. Exciting
needs
Primary
needs
Articulated
needs

18. Positioning Statements
To communicate positioning, a marketing plan should include a positioning statement following the form:
“To (target group and need) our (brand) is (concept) that (point of difference).”

19. Example:
“To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. With Mountain Dew, you can stay alert and keep going even when you haven’t been able to get a good night’s sleep.”

20. Points to Remember About Positioning:
Based on consumer perceptions of tangible and intangible characteristics of offering.
The intensity of the brand will affect positioning.

21. Global Positioning
Product categories associated with high consumer involvement and a shared “language”
High-Tech positioning
Emphasis on specialized information
Consumers already possess or wish to acquire considerable technical information
High-Touch positioning
Emphasis on product image
Wealth, materialism, romance

22. The Segmentation Process Needs-Based Segmentation Segment
Identification
Segment
Attractiveness
Segment Positioning
Strategy
Positioning
“Acid” Test

23. Testing the Positioning Statement
Test the positioning statement with target consumers--what do they think, how do they react to the statement?
Assess need level: the stronger the need, the higher the expected customer interest.
“Do you see this product as solving a problem or filling a need for you?”

24. Testing, continued...
Communicability and believability: if the scores on these dimensions are low, the positioning must be refined or revised.
“Are the benefits clear to you and believable?”

25. Testing, continued...
Perceived value: The higher the perceived vale, the higher the expected consumer interest.
“Is the price reasonable in relation to the value?”

26. Testing, continued...
Gap level between the new product and existing products: The greater the gap, the higher the expected consumer interest.
“Do other products currently meet this need and satisfy you?”

27. The Segmentation Process Needs-Based Segmentation Segment
Identification
Segment
Attractiveness
Segment Positioning
Strategy
Positioning
“Acid” Test
Strategy
Implementation

28. Segmentation Strategies
Mass
Marketing
Mass
Customization

29. Multisegment Strategy
Pursue two or more segments that are attractive and profitable, but not the whole market.

30. Sequential Segment Strategy
Multisegment approach, but rather than pursuing all the attractive segments simultaneously, pursue the most attractive first; when cash flow from that segment is positive, then pursue the next most attractive segment, and so on.

31. Single-Segment Strategy
Focus on just one attractive segment.

32. Niche Segment Strategy
Focus on a smaller group within a segment.
Requires a further customization of marketing strategy.

33. Mass Customization Strategy
Focus on all niches within a segment by customizing strategies to each subsegment.