MARKETING STRATEGY

O.C. FERRELL • MICHAEL D. HARTLINE

6
Market Segmentation, Target
Marketing, and Positioning
Market Segmentation Strategies (1 of 2)

• Traditional Approaches to Market

Segmentation
– Mass Marketing
– Differentiated Marketing
• Multisegment Approach
• Market Concentration Approach
– Niche Marketing

6-2
Mass Marketing Strategy

From Exhibit 6.1 (1 of 4) 6-3

Multisegment Strategy

From Exhibit 6.1 (2 of 4) 6-4

Market Concentration Strategy

From Exhibit 6.1 (3 of 4) 6-5

Niche Marketing Strategy

From Exhibit 6.1 (4 of 4) 6-6

Market Segmentation Strategies (2 of 2)

• Emerging Approaches to Segmentation

– One-to-One Marketing
– Mass Customization
– Permission Marketing
• Criteria for Successful Segmentation
– Identifiable and Measurable
– Substantial
– Accessible
– Responsive
– Viable
6-7
 Bases for Segmenting
Consumer Markets
• Behavioral Segmentation
– Segments based on actual behavior or product usage
• Demographic Segmentation
– Segments based on demographic factors (e.g., gender,
age, income, education, etc.)
• Psychographic Segmentation
– Segments based on state-of-mind issues (e.g., motives,
attitudes, opinions, values, lifestyles, interests,
personality, etc.)
• Geographic Segmentation
– Segments based on geographic location
6-8
 Bases for Segmenting
Business Markets
• Type of Organization
• Organizational Characteristics
• Benefits Sought or Buying Processes
• Personal and Psychological
• Relationship Intensity

6-9
Basic Target Marketing Strategies

Exhibit 6.6 6-10

 Differentiation and Positioning (1 of 2)

• Relative perception
• Process of creating favorable relative position:
– (1) Identification of target market
– (2) Determination of needs, wants, preferences and
benefits desired
– (3) Examination of competitors’ characteristics and
positioning
– (4) Comparison of product offerings with competitors
– (5) Identification of unique position
– (6) Development of a marketing program
– (7) Continual reassessment
6-11
 Differentiation and Positioning (2 of 2)

• Differentiation Strategies
– Product Descriptors
• Product features
• Advantages
• Benefits
– Customer Support Services
– Image
• Positioning Strategies
– Strengthen the Current Position
– Repositioning
– Reposition the Competition
6-12