Marketing for Managers

BUSM2412
Topic 4: Segmentation, Targeting and
Positioning
Words to the wise…

Companies can’t be all

things to all people, so…
… segmenting and targeting markets
is the key to effective marketing
strategy.
 Market Segmentation
The process of dividing a market into meaningful, relatively similar segments or groups with similar characteristics and needs
Criteria for Successful Market Segmentation

Useful
segment?

 Substantial
 Identifiable and measurable
 Accessible
 Responsive

Then, yes: Useful segmentation scheme

Is this a substantial market segment?
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Demographic Segmentation
Age Segmentation
Age/Gender Segmentation
Gender Segmentation
Income Segmentation
Ethnic Segmentation
Family Life Cycle
Segmentation
Geographic Segmentation
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Regional Segmentation
Family Life Cycle
Psychographic Segmentation
Bases for Psychographic
Segmentation

Personality
Personality

Motives
Motives

Lifestyles
Lifestyles
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GoPro Camera
Is this the GoPro Target?
The Real GoPro Target
Behavioral Segmentation
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Usage Rate Segmentation

Frequent Flier programs segment and target

consumers who fly most frequently
Coca-Cola: Segmenting the Soft Drink Market Based on
Benefits Sought
Targeting Strategy
 Targeting

• Once the market is segmented, marketers select (target)

one or more of those markets to pursue

• Firms select target markets which are a good fit with the
firm and have good profit potential
How to Choose a Target

o Does this market fit with who we are?

• Understand firm’s resources, strengths weaknesses, brand

personalities, etc.

o How profitable will this segment be?

• Function of the current market size, its anticipated growth, current

and anticipated levels of competition, customer behavior and
expectations
Copyright © 2016 RMIT University Vietnam
Reserved

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Copyright © 2016 RMIT University Vietnam
Reserved

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Positioning Strategy
Positioning

Positioning
Positioning
The process by which marketers try to
create a memorable image of the product
in the minds of the target market
Positioning Strategy

1. Assess the positions

occupied by competing
products

2. Determine the dimensions

underlying these positions

3. Choose a market position

that is distinctive and
meaningful to the
consumer
 Positioning Via Perceptual Maps

• Perceptual maps show graphical depictions of where

brands are, and where their competitors are, in the minds
of their customers

o Brands close together are seen as similar

o Brands farther apart are viewed as different

Positioning Questions

1. Which brands are most interchangeable?

2. Which brand competes more with Prius?

3. Which brand(s) is attractive to segment 1?

4. What market opportunity exists?

 Writing a Positioning Statement

• Positioning statement

• Succinctly communicates the brand’s position

• Consider:

• Your target market

• Your unique selling proposition (USP)

o e.g., For customers who want {target}, our brand is the

best at {USP}
 Writing a Positioning Statement

• Answer the following questions:

1. Who are you trying to persuade?

2. Who are you competing with?

• e.g., Who are your competitors, what is your major product

category, etc.?

3. How are you better?

• e.g., What makes you unique, what are your points of

difference, do you have any benefit that dominate competitors,
etc.?
Positioning of Volvo
Any questions?