Presentation on theme: "Segmentation, Targeting and Positioning"— Presentation transcript:
1 Segmentation, Targeting and Positioning Linking Customer Needs to Marketing Action
2 Learning ObjectivesAfter studying this chapter, you should be able to:Define the three steps of target marketing: market segmentation, target marketing, and market positioningList and discuss the bases for segmenting consumer and business marketsExplain how companies identify attractive market segments and choose a market coverage strategyDiscuss how companies position their products for maximum competitive advantage in the marketplace10/29/2014Jahanzaib Yousaf
3 TARGET MARKETING PROCESS WHO TO SERVE?3 STEPS:SegmentationTargetingPositioning10/29/2014Jahanzaib Yousaf
4 STPMarket segmentation: dividing market into distinct groups which will require separate marketing mixesTarget marketing: choosing which group(s) to appeal toMarket positioning: creating a clear, distinctive position in the consumer’s mind relative to competition10/29/2014Jahanzaib Yousaf
6 Geographic Segmentation Divide markets into different geographic units.Examples:World Region or Country: Middle East, South Asia or Pakistan, India etc.Country Region: Punjab, KPK, Sindh, etc.City or Metro Size: Lahore, Karachi.Population Density: rural, suburban, urbanClimate: northern areas, southern, tropical
7 Demographic Segmentation Use Differences in:age, gender, family size, family life cycle, income, occupation, education, race, and religionMost frequently used segmentation variableEase of measurement and high availability.
8 Psychographic Segmentation Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics.People in the same demographic classification often have very different lifestyles and personalities.
9 Behavioral Segmentation OccasionSpecial promotions & labels for holidays.Special products for special occasions.Benefits SoughtDifferent segments desire different benefits from the same products.Loyalty StatusNonusers, ex-users, potential users, first-time users, regular users.Usage RateLight, medium, heavy.
10 Loyalty Status Segmentation Hard-coreSplit loyalsShifting loyalsSwitchers
12 Requirements for Effective Segmentation To be useful, market segments must be:Measurable:Size, purchasing power, and profiles can be measuredAccessible:Segments can be reachedSubstantial:Large enough to be profitableActionable:Programs can be developed to attract and serve the segments“Lefties” are hard to identify and measure, so few firms target this segment.
15 Undifferentiated Marketing (Mass Marketing) Appeals to a broad spectrum of peopleEfficient due to economies of scaleEffective when most consumers have similar needs
16 Differentiated Marketing (Segment Marketing) Develops one or more products for each of several customer groups with different product needsCoca-Cola (Coke, Sprite, Diet Coke, etc.)Procter & Gamble (Tide, Cheer, Gain, Dreft, etc.)Toyota (Camry, Corolla, Prius, Scion, etc.)
17 Concentrated Marketing (Niche Marketing) Entails focusing efforts on offering one or more products to a single segmentUseful for smaller firms that do not have the resources to serve all marketsNiches have very specialized interests
18 Micro Marketing Local Marketing Individual Marketing (one-to-one Marketing)Segments are so precisely defined that products are offered to exactly meet the needs of each individualExample: Levi’s Original Spin (custom) jeans, hair stylistsMass customization is a related approach in which a company modifies a basic good to meet the needs of an individualExample: Proctor & Gamble’s products at Reflect.com Form Products to Be Sold into Groups
19 PositioningThe place a product occupies in consumers’ minds relative to competing products.
20 Positioning ExampleeBay’s positioning: No matter what “it” is, you can find “it” on eBay!
21 Positioning Strategy Competitive advantages Points of Parity (POP) Points of Difference (POD) => DifferentiationPositioning results from differentiation and competitive advantages.Positioning may change over time.
22 Positioning ExampleTo (target segment and need) our (brand) is a (concept) that (point-of-difference).“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.”
23 Positioning Maps: Luxury SUVs Price vs. Orientation Dimensions