Week 7 - Workshop 3:

Segmentation, Targeting,
Differentiation and Positioning
Your mission for Workshop 3
Explore the market segments, targeting, differentiation
and positioning used in the Fitness/Gym Industry
Market segments – need to respond to different marketing strategies/mixes

Targeting – evaluate each segment’s attractiveness and select one or more to enter

Differentiation – how the firm (brand) differentiates itself to create (uniquely) superior
customer value

Market positioning – how a market offering (brand) occupies a clear, distinctive and
desirable place in consumers’ minds (relative to competing products and brands*)
 T h ere is
n o si n gl e
w a y to
segmen t
a m a r ke t
Document title
Step 1: Segmentation: segment on PEOPLE!!!!
Criteria Segment 1 : must offer a Segment 2: Nick Name Segment 3: Nick Name
Nick Name
Demographic: age,
gender, income,
education, marital status
Geographic

Psychographic:
personality traits e.g.
Extrovert vs. Introvert,
openness to new ideas,
creative, explorative etc
Behavioural: purchase
behaviour
Brand preference:

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Document title
Example: for toothpaste in Australia
Criteria The sociables
Demographic: 18-24, university students
full time, casual parti-time
workers, both male and
female
Geographic Locate in Wollongong
Psychographic: Outgoing, open to new
ideas, high level of self-
maintenance, go for the
perfect smile, bright white
teeth, hedonistic
Behavioural: On a budget but would
pay the price for
uniqueness and efficiency
Brand preference: Plus White, HiSmile, Crest
White, Oral-b professional
white
The Family carers The pragmatic
warriors
35 to 55, mainly Moms, 25-50, Male, got a
either working or stay at full-time job
home
Across Australia Across Australia
Needs to take care a big Always on a rush,
family, conscientious, efficiency is the
goal-oriented, sociable, key, price is the
caring key, very goal-
oriented, simplicity
is the key
Conscientious in Go for the most
spending and stick to the cost-effective
budget option, only buys
when needed
Colgate Total Advance Colgate Total
Charcoal, Oral-B
Gum and care
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Step 2: Market targeting

Evaluating Selecting Choosing

market target a targeting
segments segments strategy
M arket segmen t a t ion (contd. )

Requirements for effective segmentation

• There are many ways to segment a market, but not all
segmentations are effective. To be useful, market segments must
be:
▪ Measurable: segment size, power and profitability can be measured
▪ Accessible: able to be reached and served efficiently
▪ Substantial: segment size is profitable
▪ Differentiable: segments are conceptually different and respond to
different marketing mix elements
▪ Actionable: effective programs can be designed to serve segments
 Evaluating market segments

• Three factors to be looked at

Segment size and growth

Segment structural
attractiveness

Company objectives and

resources

= the best ROI (based on leverage)

Document title

Market Targeting ( from your segments, pick one)

with more specific information
For instance: The Sociables is going to be the Target Audience: compose a Buyer
Persona based on your initial Segment description, a Niche targeting strategy is
applied

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Document title

Step 3: Positioning Maps (in your opinions, where

your product stands against your competitors)

Each Positioning map should

contains 2 attributes to compare:

1. Price vs. Packaging

Your 2. Taste vs. Nutrition
BRAND 3. Accessibility vs. Variety
4. And so forth

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Document title

Step 4: Critique your positioning maps

• Interpret what your positioning

maps have shown:
Your
Who are your major competitors on BRAND
the maps
In what attribute?
What does it imply in your future
marketing strategy?

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Document title

Step 5: Compose your final Positioning Statement (COMPULSORY!!!)

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E x ample 2
Group Exercise
 Workshop #3 (worth 5%)
• Yo u a re a n e nt re pre ne ur a nd y o u w i s h t o o pe n a new loca l
G y m in Wo l l o ngo ng.
• Yo u w i s h t o m a ke y o ur g y m di f f e rent t o a ny o f t he o t he r
o ne s in t he l o c a l a re a . H e n c e i t i s i m p o r t a n t t h a t y o u c o n d u c t y o u r
init ia l ma r ke t r e se a r c h a nd ide nt ify 3 -4 possible se g me nt s t ha t you c ould
t a r g e t a nd c hoose one a s your t a r g e t a udie nc e .

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 Local Gym in Wollongong: Conduct your research
Context – The fitness market
The market that you will be examining in this workshop is the local fitness market. You will need to undertake research to understand the
dynamics, the key players, and the consumer behaviour of this market.

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Market segmentation & targeting:
From your group’s brief external analysis of the market, you
will need to identify the different segments that exist in the
fitness market.
In other words, segment the market in a way that is practical.
Your group need to then profile the segments and clearly
identify which segment you are targeting and why.

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Se gmenti ng the fitness
mark e t

W h o will y o u t arget ?
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Your mission for Workshop 3
S l i des ( re c omme nde d f ormat) y ou m a y c hoose to have m ore or
l ess sl i des dependi ng on y our content

Sl i d e 1: C o ver P a g e – G ro u p m e m b e r s a n d t h ei r s t u d e nt IDs
Sl i d es 2-3 (brief): O vervi ew o f t h e l o ca l gyms e.g. t h ei r key fea t u res sel l i n g p o i n t s
Sl i d es 4-5: Segmentation: Ma rke t s e gme n t s – Id en t i fy yo u r s e gme n t s ,3 s egmen t s
Sl i d es 6-7: Targeting: Ta rget gro u p – Select ONE segment yo u wi l l t a rge t ? Why? W h a t d o e s t h e
i d ea l cu s t o me r l o o k l i ke (gi ve t h e m a n a m e – s h o w a p i ct ure)? W h a t t a rge ting
s t ra tegy (U n diffe re ntiate d, Di ffe rentiat ed, C o nce ntrate d o r Mi cro -marketi ng) yo u wi l l u s e?
Sl i d e 8: Po s i t i o ni ng Ma p s – Id en t i fy a t l ea s t 3 co mp et i t o rs a n d p l a ce t h e m o n t h e m a p
b a s ed o n va ri a bl es yo u t h i n k a re i mp o rt ant , 2 p o s i t i o n i ng ma p s a re n e e d e d
Sl i d e 9: Po s i t i o n i ng s t a t emen t – C rea t e a p o s i t i o n i ng s t a t emen t for yo u r g y m . Yo u m a y n e e d
a b ra n d n a m e fo r t h is o n e!
Reminder...your mission for
Workshop 3
Explore the market segments, targeting, differentiation
and positioning used in the Fitness/Gym industry
Thanks & make sure you
complete your multiple
choice test by Sunday
night