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Chapter 2 Learning Objectives
2.1 To understand the interrelationship among market segmentation,
targeting, and positioning and how to select the best target markets.
2.2 To understand the bases used to segment consumers, including
demographics, psychographics, product benefits sought, and
product usage-related factors.
2.3 To understand behavioral targeting and its key role in today’s
marketing.
2.4 To understand how to position, differentiate, and reposition
products.

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Learning Objective 2.1

2.1 To understand the interrelationship among

market segmentation, targeting, and positioning
and how to select the best target markets.

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How does Qantas position its offering for different market
segments?

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 To be an effective target…
a market segment must be:
•Identifiable
•Sizeable
•Stable and growing
•Reachable
•Congruent with the
marketer’s objectives and
resources

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Segmentation: An Application

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Learning Objective 2.2

2.2 To understand the bases used to segment

consumers, including demographics,
psychographics, product benefits sought, and
product usage-related factors.

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Two Types of Shared Characteristics

• Behavioral data
– Consumer-intrinsic
– Consumption-based
• Cognitive factors
– Consumer-intrinsic
– Consumption-specific

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Demographic Segmentation

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Who is the target of this ad?

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Geodemographic Segmentation

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Segmenting Green Consumers

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Personality Traits

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 ed
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D Psychographics

Consumers’ lifestyles, which include

consumers’ activities, interests, and
opinions

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Psychographic Segmentation

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Discussion Question

Which segmentation bases

could be used to describe
the target audience for the
ad?

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 TM
VALS

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Provide an example: how could this information be
used?

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Benefit Segmentation

• Benefits sought
represent consumer
needs
• Important for
positioning

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What segmentation base is used?

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Learning Objective 2.3
2.3 To understand behavioral targeting and its key role
in today’s marketing.

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 ed
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D Behavioral Targeting

sending consumers personalized and prompt

offers and promotional messages designed to
reach the right consumers and deliver to them
highly relevant messages at the right time and
more accurately than when using conventional
segmentation techniques

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Tracking Online Navigation Includes:

• Websites visited
• Engagement on sites
• Lifestyles and personalities
• Purchases, almost purchases, returns,
exchanges

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 ed
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D Predictive Analytics
Measures that predict consumers’ future
purchases on the bases of past buying
information and other data, and also
evaluate the impact of personalized
promotions stemming from the
predictions.

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Application: Target

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Learning Objective 2.4

2.4 To understand how to position, differentiate,

and reposition products.

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 ed
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D Positioning
The process by which a company
creates a distinct image and identity for
its products, services, or brands in
consumers’ minds.

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Positioning Process

1. Define the market, buyers and competition.

2. Identify key attributes and research consumers’
perceptions
3. Research consumers’ perceptions on competing
offerings.
4. Determine preferred combination of attributes.
5. Develop positioning concept that communicates
attributes as benefits.
6. Create a positioning statement and use it to
communicate with the target audiences.
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Positioning Application

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Umbrella Positioning

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Other Types of Positioning

• Premier positioning
• Positioning against the competition
• Key attribute
• Un-owned positioning

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Repositioning

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Perceptual Map

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What type of positioning is used?

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