Segmentation,

target and
market
position
A P T. B U N G A D E S T I YA N A ,
M . FA R M
The purpose of this material is expected to be able to
explain about:

1. Market segmentation
2. Target and market position
Market segmentation
Market segmentation is the process of grouping a heterogeneous overall market into groups or
segments that have similarities in terms of needs, desires, behaviour and or responses to specific
marketing programs.

A company cannot serve all customers in very broad markets such as the food and beverage
market and the pharmaceutical market. There are too many customers and their purchase
demands vary besides it is impossible for the company to be able to serve all the needs of the
group of buyers in the market because of the source the power and capabilities possessed by the
company are indeed limited.

The market segment consists of a group of customers who have something in common in terms
of satisfaction demands for a product
Three main steps market
segmentation
Market/target market segmentation requires marketers to take three main steps:

1. Identify and sort out different groups of buyers who may be requesting a
separate product and/or marketing mix (market segmentation).

2. Choosing one or more market segments to enter (market capture).

3. Forming and communicating the main benefits that distinguish the company's
products from other products of the market (determination of market position).
Effective segmentation
Effective segmentation must meet • The size and purchasing power and profile of the
Measurable : segment must be measurable to determine its
the following conditions: potential.

• Market segments can be reached and served

Accessible :
effectively.

• Market segmentation is large enough or sufficiently

Quite large gives a serviceable profit. A segment is a
(substantial) : homogeneous group that is valuable enough to be
served by an appropriate marketing program.

• Differentiable means that the segments can be

Differentiable :
clearly distinguished.

• Means that the segment can be reached or served

Actionable :
with the resources owned by the company
Benefits and objectives of market
segmentation
Markets are easier to distinguish
• Better service

More targeted marketing strategies

• Discovering new opportunities

Design determinants
• More effective communication strategies

See competitors with the same segment

• Evaluation of targets and business plans
Consumer market segmentation variables
geography
Consumer market segmentation variables
can be grouped into six categories: Demographics

psychography

socio-culture

relates to the extreme (thoughts and feelings)

use situation

Benefit

Hybrid segmentation

Market segmentation based on behavior

The procedure for conducting market
segmentation
Survey stage Analysis stage Formation Stage

• At this stage, interviews • At this stage, data
are conducted with the
target market segment to
gain an understanding of
consumer attitudes,
motivations , and
behaviors. Interviews can
be in the form of
questionnaires where the
questionnaire data
collected can be used as
information on the
attributes needed.
• At this stage, groups are
containing high-tolerant formed based on
variables are discarded, differences in attitudes,
then a group analysis is behaviours, demographics
performed to produce a and media patterns. And
maximum number of the dominant trait found
different segments in the group, given the
name of the profile on
the group of the segment.
MARKET TARGETING

The size of the growth of the segment

Structural characteristics of the segment.

Attractiveness and resources of the enterprise

1. The size of the growth of the segment
Companies need to collect, review and analyse data on
sales, growth and profitability of existing segments. Then
choose the one that has the right size and growth
2. Structural characteristics of the segment

Segments whose size and growth are suitable still do not

offer attractive profits. Companies should examine several
important structural factors that affect the attractiveness
of a segment in the long term.
3. Attractiveness and resources of the
enterprise

The size of a large market segment and high attractiveness

may not necessarily be entered by a company if the goals
and resources of the company do not match the segment
MARKET POSITIONING
The task of positioning consists of three steps , namely :

Investigating competitive
advantage

Choosing the right advantages

Communicate and deliver these

choices to the market effectively
Investigating competitive
advantage
Positioning begins with the actual differentiation of the company's offer so as to give the consumer more
value than what the competitor is given.

The market can be differentiated by product, service, personnel and image, among others:

Product Differentiation Personnel Image

differentiation of merits differentiation Differentiation
Choosing the right advantages
Having managed to gain a set of potential competitive
advantages, it is time to determine which one to highlight
and how far that advantage will go
Communicate and deliver these choices to the
market effectively
Once a position has been chosen, the company must strive
to communicate and convey to the target consumer.
Companies must strive for a marketing mix to support this
positioning strategy. Keep in mind that that positioning
should be adjusted in real form and not just nonsense.
Thanks