Segmenting, Targeting

& Positioning
MEETING 4
Segmentation
The process of dividing the total market for a particular product or product category into
relatively homogeneous segments or groups.
Traditional Market Segmentation
Mass • all customers in the market have similar needs
and wants that can be reasonably satisfied with
marketing a single marketing program.

Differentiated • multisegment approach

marketing • market concentration approach

Niche • focus their marketing efforts on one small, well-

defined market segment or niche market that
marketing has a unique, specific set of needs.
Individualised Segmentation
• a company creates an entirely unique
One-to-one product or marketing program for
marketing each customer in the target segment

• providing unique products and

Mass solutions to individual customers on a
customisation mass scale

• customers give companies permission

Permission to specifically target them in their
marketing marketing efforts.
Market Targeting
Once the firm has identified its market-segment opportunities, it must decide how many and
which ones to target.
There are three strategies of target market selection:
a) Single-segment concentration
b) Selective specialization
c) Full market coverage
Single Segment Concentration
Firm markets to only one particular segment. Example: Porsche on the sports car market.
Benefits of Single Segment Implementation:
a) Firm gains deep knowledge of the segment’s needs
b) Firm achieves a strong market presence.
c) Firm enjoys operating economies by specializing its production, distribution, and promotion.
Selective specialization

Product
Market
Product Specialization
The firm makes a certain item that it offers successfully in several different market segments.
 A microscope manufacturer, for instance, sells to university, government, and commercial
laboratories.
Benefits of Product Specialization:
a) The firm can build a strong reputation in the specific segment market.
Market Specialization
The firm concentrates on serving many needs of a particular customer group.
For instance, a firm can sell an assortment of products/services only to university laboratories.
Benefits of Market Specialization:
a) The firm gains a strong reputation in serving a certain customer group
b) The firm becomes a channel for additional products/service offerings that the customer
group can use.
Full Market Coverage
A firm attempts to serve all customer groups with all the products they might need.
Only very large firms such as Microsoft, Coca-Cola and General Motors can undertake a full
market coverage strategy.
Two types of Full Market Coverage:
a) Undifferentiated Marketing: the firm trades on the whole market with one offer.
b) Differentiated Marketing: the firm operates in several market segments and designs
different product/service offers for each.
Positioning
The act of designing the company’s market offering and image to occupy a distinctive place in
the minds of the target market.
The goal is to establish the brand in the minds of consumers in order to maximise the potential
benefit to the firm.
Steps in Positioning

Identify PODs
(Points of
Defining a Using brand
Differences)
competitive spell (Nike: Just
dan POPs
frame do it)
(Points of
Parities)