1. 6 MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE
Market Segmentation, Target
Marketing, and Positioning

2. Market Segmentation Strategies (1 of 2)
Traditional Approaches to Market Segmentation
Mass Marketing
Differentiated Marketing
Multisegment Approach
Market Concentration Approach
Niche Marketing

3. Mass Marketing Strategy
From Exhibit 6.1 (1 of 4)

4. Multisegment Strategy
From Exhibit 6.1 (2 of 4)

5. Market Concentration Strategy
From Exhibit 6.1 (3 of 4)

6. Niche Marketing Strategy
From Exhibit 6.1 (4 of 4)

7. Discussion Question
Can you think of a product that could be marketed effectively using a mass marketing approach? If so, explain and justify your answer. If not, what types of changes would have to be made to the product to make it appropriate for a mass marketing approach?

8. Multisegment Approach

9. Market Segmentation Strategies (2 of 2)
Emerging Approaches to Segmentation
One-to-One Marketing
Mass Customization
Permission Marketing
Criteria for Successful Segmentation
Identifiable and Measurable
Substantial
Accessible
Responsive
Viable

10. Discussion Question
Many consumers and consumer advocates are critical of the one-to-one marketing approach due to personal privacy concerns. Marketers counter that one-to-one marketing can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks. Where do you stand on this issue? Why?

11. Bases for Segmenting Consumer Markets
Behavioral Segmentation
Segments based on actual behavior or product usage
Demographic Segmentation
Segments based on demographic factors (e.g., gender, age, income, education, etc.)
Psychographic Segmentation
Segments based on state-of-mind issues (e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.)
Geographic Segmentation
Segments based on geographic location

12. Marketing Strategy in Action
Demographic segmentation strategies, such as the one utilized in this Virginia Slims advertising campaign, are common because their ease of use and measurement.
What are the limitations of demographic segmentation? What can marketers do to compensate for these limitations?

13. VALS

14. Benefit Segmentation of the Snack Food Market
Exhibit 6.4

15. Discussion Question
What are some of the ethical and legal issues involved in targeting sensitive groups such as children and seniors?

16. Bases for Segmenting Business Markets
Type of Organization
Organizational Characteristics
Benefits Sought or Buying Processes
Personal and Psychological
Relationship Intensity

17. Target Marketing Strategies
Five basic strategies for target market selection:
(1) Single Segment Targeting
(2) Selective Targeting
(3) Mass Market Targeting
(4) Product Specialization
(5) Market Specialization

18. Basic Target Marketing Strategies
Exhibit 6.6

19. Differentiation and Positioning (1 of 2)
Relative perception
Process of creating favorable relative position:
(1) Identification of target market
(2) Determination of needs, wants, preferences and
benefits desired
(3) Examination of competitors’ characteristics and
positioning
(4) Comparison of product offerings with competitors
(5) Identification of unique position
(6) Development of a marketing program
(7) Continual reassessment

20. Differentiation and Positioning (2 of 2)
Differentiation Strategies
Product Descriptors
Product features
Advantages
Benefits
Customer Support Services
Image
Positioning Strategies
Strengthen the Current Position
Repositioning
Reposition the Competition

21. Using Product Descriptors for Product Differentiation
Exhibit 6.7