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Segmentation Targeting Differentiation and Positioning
Segmentation Targeting Differentiation and Positioning
Topic 8 -
Market Segmentation
Segmentation Methods
Market Targeting
Positioning
6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s) Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases
for Segmenting the Market
Segment Marketing
Different products to one or more segments
(some segmentation)
Niche Marketing
Different products to subgroups within segments
(more segmentation)
Micromarketing
Products to suit the tastes of individuals and locations
(complete segmentation)
Geographic
Nations, states,
regions or cities
Demographic
Age, gender, family size
and life cycle, or income
Psychographic
Social class, lifestyle,
or personality
Behavioral
Occasions, benefits,
uses, or responses
Dr. Sweta Menon
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
Psychographic segmentation
divides a market into
different groups based on
social class, lifestyle, or
personality characteristics.
Hard-core
Split loyals
Shifting loyals
Switchers
Dr. Sweta Menon
User & Loyalty Status Segmentation
Industrial Markets
Political/
Geographic Economic
Legal
Cultural Intermarket
Dr. Sweta Menon
Step 1. Market Segmentation
Requirements for Effective Segmentation
Company
Resources
Product
Variability
Product’s Stage
in the Product Life Cycle
Market
Variability
Competitors’
Dr. Sweta Menon Marketing Strategies
Targeting Segments - Overview
Marketers must:
Plan positions to give products the greatest advantage
Develop marketing mixes to create planned positions
Relevance
Distinctiveness
Believability
Feasibility
Communicability
Sustainability
eBay’s positioning: No
matter what “it” is, you can
find “it” on eBay!
Product Product
Class Attributes
D
Against a E
B
Usage
Competitor F
Occasions
Users
Product Services
Differentiation (Bose) Differentiation (Dominos)
i.e. Features, Performance, i.e. Delivery, Installation,
Style & Design, Attributes Repair Services, Customer
Training Services
Channel
Differentiation
(Amazon)
Image People
Differentiation (Taj Hotels) Differentiation (Disney)
i.e. Symbols, Characters i.e. Hiring, Training Better
People Than Competitors
Do
Dr. Sweta Menon
Selecting the Right Competitive
Advantages
Important
Profitable Distinctive
Criteria
for
Determining
Which
Differences
Affordable to Superior
Promote
Preemptive Communicable
Overpositioning:
Giving buyers too narrow a picture of the company.
Confused Positioning:
Leaving buyers with a confused image of a company.