2.

MARKET
SEGMENTATION
Marketing Management – 2020/21

Lecturer: Dr. José Luis G. Porras

AGENDA

1 CONCEPT AND OBJECTIVES

2 MACROSEGMENTATION

3 MICROSEGMENTATION: PROCESS AND STAGES

4 SEGMENTATION STRATEGIES
 1.
CONCEPT
AND OBJECTIVES
1 CONCEPT AND OBJECTIVES

SEGMENTING
“TO DIVIDE THE MARKET INTO GROUPS OF PEOPLE
CONCEPT WITH HOMOGENEOUS NEEDS WHICH CAN BE
TREATED IN A DIFFERENT COMMERCIAL FORM.”

MARKET SEGMENT
“AN IDENTIFIABLE GROUP OF CUSTOMERS THAT
SHARE ONE OR MORE NEEDS”

MARKET SEGMENTS GENERALLY RESPOND IN A

PREDICTABLE MANNER TO A MARKETING OR
PROMOTION OFFER.
1 CONCEPT AND OBJECTIVES

PURPOSE
OF MARKET SEGMENTATION

TO BETTER MEET CUSTOMER NEEDS

TO IDENTIFY OPPORTUNITIES FOR NEW PRODUCTS AND SERVICES DEVELOPMENT

TO HELP IN DESIGNING THE MOST EFFECTIVE MARKETING PROGRAMS TO REACH

MORE HOMOGENEOUS GROUPS OF CLIENTS

TO IMPROVE THE STRATEGIC ALLOCATION OF MARKETING RESOURCES

1 CONCEPT AND OBJECTIVES

PROCESS
OF MARKET SEGMENTATION

SEQUENTIALLY THERE ARE THREE DECISION-MAKING PROCESSES

INTERRELATED:

DETERMINING THE MARKET SEGMENTS

DETERMINING THE TARGET MARKET(S)

STRATEGIC POSITIONING CHAPTER 3

1 CONCEPT AND OBJECTIVES

MACRO VS. MICROSEGMENTATION

MACROSEGMENTATION MICROSEGMENTATION

OBJECTIVE: ANALYZE THE

OBJECTIVE: DEFINE THE
DIVERSITY INSIDE
MARKET OF REFERENCE
PRODUCT-MARKETS
(PRODUCT-MARKET)

UNIT OF MEASUREMENT: UNIT OF MEASUREMENT:

PRODUCT-MARKETS BUYERS

“WHAT IS THE MARKET OF “WHAT SUBMARKETS LOOK FOR

ACTIVITY” THE SAME ATTRIBUTES?”
 1 CONCEPT AND OBJECTIVES

MACROSEGMENTATION

DAIRY FUNCTIONS (NEEDS)

SUPPLEMENT

DIGESTIVE

INCREASE BODY
DEFENCES

DESSERT

BUYERS
CHEESE
TECHNOLOGY YOGURT CHILDREN TEENS ADULTS
PUDDING
DRINKING YOGURT
 1 CONCEPT AND OBJECTIVES

MICROSEGMENTATION

DAIRY FUNCTIONS (NEEDS)

SUPPLEMENT

DIGESTIVE

INCREASE BODY
DEFENCES

DESSERT

BUYERS
CHEESE
TECHNOLOGY YOGURT CHILDREN TEENS ADULTS
PUDDING
DRINKING YOGURT
 2.
MACROSEGMENTATIO
N
2 MACROSEGMENTATION

“TO DIVIDE THE MARKET INTO MARKETS OF

RECERENCE (PRODUCT-MARKETS).”
CONCEPT THAT IS IDENTIFYING THE INTERSECTION BETWEEN
NEEDS/FUNCTIONS, BUYERS AND TECHNONOGY

UNVEILS THE 4 KEY ELEMENTS OF THE MARKETING STRATEGY:

BUYERS COMPETITORS

SEEKED ATRIBUTES OPPORTUNITIES

 2 CONCEPT AND OBJECTIVES

HOTELS

LODGING FUNCTIONS (NEEDS)

LUXURY

STYLISH

AFFORDABLE
BUYERS
GYM
TECHNOLOGY POOL BACKPACKERS FAMILIES BUSINESS
CONFERENCE ROOMS TRAVELERS
DINING
PARKING
2 CONCEPT AND OBJECTIVES

ACCOR BUSINESS SEGMENTATION

2 CONCEPT AND OBJECTIVES

ACCOR BUSINESS SEGMENTATION

2 CONCEPT AND OBJECTIVES

ACCOR BUSINESS SEGMENTATION STRATEGY

 2 CONCEPT AND OBJECTIVES

EVOLUTION OF THE PRODUCT-MARKETS: CAUSES

FUNCTIONS (NEEDS)
EXTENSION TO NEW FUNCTIONS:
APPEARANCE OF PRODUCTS WITH
NEW FUNCTIONS OR WITH
COMBINATION OF FUNCTIONS

TECHNOLOGICAL REPLACEMENT:
NEW TECHNOLOGIES MEET THE
SAME FUNCTION OR NEED
BUYERS
TECHNOLOGY
ADOPTION AND DISSEMINATION
OF BUYERS: INCREASE/DECREASE
IN THE MARKET OCCUPATION RATE
2 CONCEPT AND OBJECTIVES

EVOLUTION OF THE PRODUCT-MARKETS: NEW SCENARIOS

NEW TECHNOLOGIES CAN MEET THE SAME FUNCTION OR NEED

NEW FUCTIONS COULD BE MEET BY A MODIFIED OR IMPROVED PRODUCT

OTHER CUSTOMER GROUPS WITH A NEED OR FUNCTION IN COMMON

ONE PRODUCT CAN OFFER A VARIETY OF FUNCTIONS

NEEDS ARE BEST MET WHEN PRODUCTS FEATURE A SMALL NUMBER OF

FUNCTIONS
 3.
THE STAGES OF THE
SEGMENTATION
PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS

DEFINITION OF THE EXPLANATORY

VARIABLES VARIABLE(S) OF SEGMENTATION:
SEGMENTATION CRITERIA

SEGMENTATION ESTABLISHMENT OF THE TYPE OF

TYPE SEGMENTATION

SEGMENTATION APPLICATION OF THE TECHNIQUE(S)

TECHNIQUE (SEGMENTATION)

SEGMENT
VALIDATION SEGMENT VALIDATION

SEGMENT
ANALYSIS SEGMENT ANALYSIS

TARGET
MARKETS
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES EXPLAINED VARIABLE

EXPLANATORY VARIABLES
SEGMENTATION
TYPE
(SEGMENTATION CRITERIA)

SEGMENTATION
TECHNIQUE

SEGMENT
VALIDATION

SEGMENT
ANALYSIS
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES EXPLAINED VARIABLE

SEGMENTATION EXAMPLES OF VARIABLES TO EXPLAIN WITH THE

TYPE SEGMENTATION:

SEGMENTATION TO CONSUME OR NOT A PRODUCT

TECHNIQUE

SEGMENT
VALIDATION
MORE OF LESS ACCEPTATION OF A
PRODUCT/BRAND/CHARACTERISTIC

SEGMENT
ANALYSIS
BRAND PREFERENCE
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES EXPLANATORY VARIABLES

(SEGMENTATION CRITERIA)
SEGMENTATION
TYPE
EXAMPLES OF VARIABLES TO EXPLAIN WITH THE
SEGMENTATION:

SEGMENTATION INDICATORS THAT IDENTIFY GROUPS OF

TECHNIQUE
BUYERS AS HOMOGENEOUS AS POSSIBLE
WITHING EACH GROUP (INTRA-GROUP
SEGMENT HOMOGENEITY)
VALIDATION

SEGMENT
ANALYSIS
INDICATORS THAT IDENTIFY GROUPS
OF BUYERS AS HETEROGENEOUS AS
POSSIBLE AMONG GROUPS (INTER-
GROUP HETEROGENEITY)
3 THE STAGES OF THE
SEGMENTATION PROCESS
SEGMENTATION CRITERIA

VARIABLES FIRST-ORDER SEGMENTATION

VALUE SEEKED BY THE BUYER

SEGMENTATION
SATISFIED NEED
TYPE

SECOND-ORDER SEGMENTATION
SEGMENTATION
TECHNIQUE
PROFILE

SEGMENT
VALIDATION BEHAVIOURAL

SEGMENT PSYCHOGRAPHIC
ANALYSIS

VALUE OF THE CLIENT

3 THE STAGES OF THE
SEGMENTATION PROCESS
SEGMENTATION CRITERIA

VARIABLES FIRST-ORDER SEGMENTATION

VALUE SEEKED BY THE BUYER

SEGMENTATION
SATISFIED NEED
TYPE

SEGMENTATION
TECHNIQUE MEASURE TIME

SEGMENT PRESTIGE
VALIDATION

SEGMENT INVESTMENT
ANALYSIS

QUALITY
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
3 THE STAGES OF THE
SEGMENTATION PROCESS
SEGMENTATION CRITERIA

VARIABLES SECOND-ORDER SEGMENTATION

PROFILE
SEGMENTATION
BUYER CHARACTERISTICS
TYPE

SEGMENTATION GEOGRAPHIC: REGION, REGION SIZE, AREA

TECHNIQUE
(URBAN/RURAL), CLIMATE, CITY SIZE, ETC.

SEGMENT DEMOGRAPHIC: AGE, SEX, MARITAL STATUS,

VALIDATION
FAMILY SIZE, FAMILY TYPE, CHILDREN, ETC.

SEGMENT
ANALYSIS SOCIOECONOMIC: INCOME LEVEL, SOCIAL
CLASS (STATUS), OCCUPATION
(EMPLOYMENT), RELIGION, NATIONALITY, ETC.
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES

SEGMENTATION
TYPE

SEGMENTATION
TECHNIQUE

SEGMENT
VALIDATION

SEGMENT
ANALYSIS
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES

SEGMENTATION
TYPE

SEGMENTATION CHILDREN FAMILIES

TECHNIQUE

SEGMENT
VALIDATION

SEGMENT
ANALYSIS

ADULTS WOMEN
3 THE STAGES OF THE
SEGMENTATION PROCESS
SEGMENTATION CRITERIA

VARIABLES SECOND-ORDER SEGMENTATION

BEHAVIOURAL
SEGMENTATION
TYPE

SEGMENTATION PURCHASE OCCASION: SELF-BUY, GIFT,

TECHNIQUE SPECIAL OCCASIONS

SEGMENT PURCHASE BEHAVIOUR: FRECUENCY,

VALIDATION LOYALTY, CHANNEL

USAGE: HEAVY OR LIGHT USER, MOMENT

SEGMENT
ANALYSIS
OF USE

MEDIA BEHAVIOUR: PRIMARLY ONLINE,

PRIMARLY OFFLINE
3 THE STAGES OF THE
SEGMENTATION PROCESS
SEGMENTATION CRITERIA

VARIABLES SECOND-ORDER SEGMENTATION

SEGMENTATION PSYCHOGRAPHIC
TYPE

SEGMENTATION • People within the same demographic group can

TECHNIQUE exhibit very different psychographic profiles on
the basis of personality traits, lifestyle or values.
SEGMENT
VALIDATION
LIFESTYLE PERSONALITY

SEGMENT
ANALYSIS • TRENDSETTERS • CONSCIENTIOUS
• CONSERVATIVES • AGREEABLE
• SOPHISTICATES • EXTROVERT
3 THE STAGES OF THE
SEGMENTATION PROCESS
SEGMENTATION CRITERIA

VARIABLES SECOND-ORDER SEGMENTATION

SEGMENTATION VALUE OF THE CLIENT

TYPE

SEGMENTATION
• Client value in a medium or long term.
TECHNIQUE • Estimated reaction of each group of clients to
the company's offer.
• We must distinguished between:
SEGMENT
VALIDATION
MVCS (most valuable customers)
or better clients
SEGMENT
ANALYSIS
MPC (most potential customers)
with longer haul

BZS (below zeros) the non-

profitable.
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES

SEGMENTATION
TYPE

SEGMENTATION
TECHNIQUE • INDIVIDUALS
• HOMES
SEGMENT
VALIDATION • SMEs
• CORPORATIONS
SEGMENT
ANALYSIS • PUBLIC ENTITIES
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES

SEGMENTATION
TYPE

SEGMENTATION
TECHNIQUE

SEGMENT
VALIDATION

SEGMENT
ANALYSIS
• BOYS • YOUNG ADULTS
• GIRLS • ADULTS
• TEENS • BOOMERS
3 THE STAGES OF THE
SEGMENTATION PROCESS

TWO WAYS TO MARKET SEGMENTATION:

VARIABLES
DESCRIPTIVE SEGMENTATION OR "A PRIORI":
• THE MARKET IS DIVIDED ACCORDING TO SOME
SEGMENTATION CRITERIA OR PRE-ESTABLISHED EXPLANATORY
TYPE
VARIABLE.

SEGMENTATION
TECHNIQUE SEGMENTATION "A POSTERIORI":

• SEGMENTATION TECHNIQUES ARE USED TO IDENTIFY

SEGMENT THE VARIABLES.
VALIDATION
• IT CONSIST OF TWO STEPS:
SEGMENT
ANALYSIS  Market research on consumers' expectations

 Determination of socioeconomic, geographical,

behavioural, etc. profiles of the identified
functional sectors
3 THE STAGES OF THE
SEGMENTATION PROCESS

DEPENDENCE INTERDEPENDENCE
VARIABLES
OBJECTIVES: OBJECTIVES:
• IDENTIFY • IDENTIFY MULTIPLE
SEGMENTATION
TYPE HOMOGENEOUS AND SIMULTANEOUS
SEGMENTS INTERDEPENDENCE
• IDENTIFY THE MOST RELATIONSHIPS
SEGMENTATION
RELEVANT SELECTION
TECHNIQUES
CRITERIA

SEGMENT
VALIDATION 1. Cluster Analysis
1. AID (Automatic
Interaction Detector)
SEGMENT 2. CHAID (Chi-Square
ANALYSIS Automatic
Interaction Detector)
3. Discriminant Analysis
3 THE STAGES OF THE
SEGMENTATION PROCESS
TO DETERMINE THAT THE MARKET HAS BEEN
PROPERLY SEGMENTED, FIVE CRITERIA ARE
VARIABLES CONSIDERED:

SEGMENTATION
TYPE SUBSTANTIAL
& STABLE
SEGMENTATION
TECHNIQUE DIFFERENTIATED
ADEQUATE
SEGMENT
VALIDATION

ACCESSIBLE
SEGMENT
ANALYSIS MEASURABLE
3 THE STAGES OF THE
SEGMENTATION PROCESS
TO DETERMINE THAT THE MARKET HAS BEEN
PROPERLY SEGMENTED, FIVE CRITERIA ARE
VARIABLES CONSIDERED:

DIFFERENTIATED SEGMENTS
SEGMENTATION
TYPE • MOST IMPORTANT CONDITION: to maximize the
differences between groups (heterogeneity) and to
SEGMENTATION minimize the differences between buyers inside
TECHNIQUE each group (homogeneity).
• The lack of heterogeneity can generate
SEGMENT
cannibalism among products of the same company
VALIDATION destined to different segments.

SEGMENT MEASURABLE SEGMENTS

ANALYSIS
• The variables or selection criteria (size, purchasing
power, and characteristics of the segments in terms
of purchase behavior) can be measured.
3 THE STAGES OF THE
SEGMENTATION PROCESS

SUBSTANTIAL AND STABLE SEGMENTS

VARIABLES • A segment must imply a sufficient potential to

justify itself the development of a specific
marketing strategy.
SEGMENTATION • The temporary duration of the segment must be
TYPE
sufficient to assure the profitability.

SEGMENTATION
TECHNIQUE ACCESSIBLE SEGMENTS

• Able to undertake marketing decisions.

SEGMENT
VALIDATION
• It can be more or less permeable: degree of
difficulty inherent to the access.
SEGMENT
ANALYSIS ADEQUATE SEGMENTS FOR THE COMPANY

• Appropriate to company's objectives and

resources.
3 THE STAGES OF THE
SEGMENTATION PROCESS

VARIABLES SHOULD WE TARGET A SEGMENT?

SEGMENTATION
TYPE

SEGMENTATION
TECHNIQUE

SEGMENT
MCKINSEY–GENERAL ELECTRIC
VALIDATION
MATRIX
SEGMENT
ANALYSIS
3 THE STAGES OF THE
SEGMENTATION PROCESS
THE 5 STEPS OF SEGMENT ANALYSIS:

Select factors and criteria to measure the market

VARIABLES
1 attractiveness and the competitive position.

SEGMENTATION
TYPE MARKET ATTRACTIVENESS WEIGHT RATING TOTAL

CUSTOMER NEEDS 50 10 500

SEGMENTATION GROWTH RATE 30 7 210
TECHNIQUE
NUMBER OF COMPETITORS 20 8 160

SEGMENT TOTAL 100 870

VALIDATION
COMPETITIVE ADVANTAGE WEIGHT RATING TOTAL

MARKET SHARE 60 7 420

SEGMENT
ANALYSIS PRODUCT IMAGE 20 5 100
PROFITABILITY 20 7 140

TOTAL 100 660

• COODINATES (87, 66)

3 THE STAGES OF THE
SEGMENTATION PROCESS
THE 5 STEPS OF SEGMENT ANALYSIS:
To weight the factors of the market attractiveness
VARIABLES
2 and the competitive position to reflect its relative
importance.
SEGMENTATION
TYPE
100
SEGMENTATION

MARKET ATTRACTIVENESS
TECHNIQUE

SEGMENT
VALIDATION 50

SEGMENT
ANALYSIS

0
100 50 0
COMPANY’S COMPETITIVE ADVANTAGE
3 THE STAGES OF THE
SEGMENTATION PROCESS
THE 5 STEPS OF SEGMENT ANALYSIS:

To evaluate the current position of every potential

VARIABLES
3 target market in every factor.

SEGMENTATION
TYPE
100
SEGMENTATION

MARKET ATTRACTIVENESS
TECHNIQUE

SEGMENT
VALIDATION 50

SEGMENT
ANALYSIS

0
100 50 0
COMPANY’S COMPETITIVE POSITION
3 THE STAGES OF THE
SEGMENTATION PROCESS
THE 5 STEPS OF SEGMENT ANALYSIS:

To project the future position of each market

VARIABLES
4 based on expected environmental, customer and
competitive trends.
SEGMENTATION
TYPE
100
SEGMENTATION

MARKET ATTRACTIVENESS
TECHNIQUE

SEGMENT
VALIDATION 50

SEGMENT
ANALYSIS

0
100 50 0
COMPANY’S COMPETITIVE POSITION
3 THE STAGES OF THE
SEGMENTATION PROCESS
THE 5 STEPS OF SEGMENT ANALYSIS:

To select segments and to assign resources:

VARIABLES
5 TARGET MARKETS

SEGMENTATION
TYPE

SEGMENTATION
TECHNIQUE

SEGMENT
VALIDATION

TARGET NOT TARGET DEPENDS:

SEGMENT
ANALYSIS

• THE HOPE OF IMPROVEMENT

• INTER-RELATED SEGMENTS
• ATTACK STRATEGIES TO COMPETITOR
3 THE STAGES OF THE
SEGMENTATION PROCESS
THE 5 STEPS OF SEGMENT ANALYSIS:

Select factors and criteria to measure the market

VARIABLES
1 attractiveness and the competitive position.

SEGMENTATION
TYPE To weight the factors of the market attractiveness
2 and the competitive position to reflect its relative
importance.
SEGMENTATION
TECHNIQUE

To evaluate the current position of every potential

SEGMENT 3 target market in every factor.
VALIDATION

To project the future position of each market

SEGMENT
ANALYSIS 4 based on expected environmental, customer and
competitive trends.

To select segments and to assign resources:

5 TARGET MARKETS
 4.
SEGMENTATION
STRATEGIES
 4 SEGMENTATION STRATEGIES

BUYER FOCUS P1 P1 P1

P2 P2 P2

P3 P3 P3

S1 S2 S3 S1 S2 S3 S1 S2 S3
FULL MARKET SINGLE SEGMENT MARKET NICHE
COVERAGE CONCENTRATION

P1
MARKET FOCUS

P1 P1
PRODUCT-

P2 P2 P2

P3 P3 P3

S1 S2 S3 S1 S2 S3 S1 S2 S3
SELECTIVE PRODUCT MARKET
SPECIALIZATION SPECIALIZATION SPECIALIZATION
 4 SEGMENTATION STRATEGIES

FULL MARKET
COVERAGE UNDIFFERENTIATED
• TREAT THE MARKET AS A WHOLE (IGNORE SEGMENTS)
P1
• STANDARDIZED PRODUCTS (SCALE ECONOMIES)
P2
• ONE STRATEGY FOR MOST POSSIBLE BUYERS

P3 • RISK OF COUNTER-SEGMENTATION

S1 S2 S3
DIFFERENTIATED
ALL SEGMENTS
ALL PRODUCTS • IT RECOGNISED DIFFERENT SUBMARKETS

• ADAPTED PRODUCTS (HIGHER COSTS)

• A SET OF STRATEGIES ADAPTED TO EVERY SEGMENT

• RISK OF HYPER-SEGMENTATION
4 SEGMENTATION STRATEGIES

UNDIFFERENTIATED
4 SEGMENTATION STRATEGIES

DIFFERENTIATED
 4 SEGMENTATION STRATEGIES

SINGLE SEGMENT
OFTEN ADOPTED BY SMES (SMALL AND MEDIUM
CONCENTRATION
ENTERPRISES)

P1 THE FIRM LOOKS FOR A STRONG MARKET

PRESENCE, DUE TO A STRONG KNOWLEDGE OF
THE SEGMENT’S NEEDS AND A BETTER IMAGE
P2

P3 THIS “DIRECTED” SPECIALIZATION CAN RELY ON A

FUNCTION OR ON A SPECIFIC GROUP OF BUYERS
S1 S2 S3

ONE SEGMENT ADVANTAGE: SCALE ECONOMIES (PRODUCTION

ONE PRODUCT AND MARKETING)

DISADVANTAGE: HIGHER RISKS THAN NORMAL (AS

OPERATING IN JUST ONE SEGMENT)
4 SEGMENTATION STRATEGIES
 4 SEGMENTATION STRATEGIES

MARKET
A MARKET GAP OR NICHE IS IN FACT A MICRO-SEGMENT, A
NICHE
VERY SPECIFIC SEGMENT

P1
A MARKET GAP HAS A COMPLEX AND SPECIFIC SET
OF NEEDS
P2

P3
A MARKET GAP (OR NICHE) STRATEGY IS
INCREASINGLY MORE FREQUENT
S1 S2 S3

ADVANTAGE: THE LEADER FIRM IS NORMALLY NOT

ONE VULNERABLE TO COMPETITORS ATTACKS
SUBSEGMENT
ONE PRODUCT
DISADVANTAGE: THE NARROWER THE GAPS ARE
DEFINED, THE FEWER POTENTIAL BUYERS WILL
STAY AND, IN CONSEQUENCE, THE POTENTIAL
BENEFIT WILL BE LOWER
4 SEGMENTATION STRATEGIES
 4 SEGMENTATION STRATEGIES

SELECTIVE
SPECIALIZATION

P1 ADVANTAGE: DIVERSIFICATION OF THE FIRM’S

RISK
P2

DISADVANTAGE: LACK OF SYNERGY (VERY OFTEN)

P3

S1 S2 S3

SOME SEGMENTS
SOME PRODUCTS
4 SEGMENTATION STRATEGIES
 4 SEGMENTATION STRATEGIES

PRODUCT
SPECIALIZATION

P1 ADVANTAGE: STRONG REPUTATION IN THE

SPECIFIC PRODUCT AREA
P2
DISADVANTAGE: RISK THAT THE PRODUCT MAY BE
P3 SUPPLANTED BY A NEW TECHNOLOGY

S1 S2 S3

ONE PRODUCT
ALL SEGMENTS
4 SEGMENTATION STRATEGIES
4 SEGMENTATION STRATEGIES
 4 SEGMENTATION STRATEGIES

MARKET
SPECIALIZATION

P1 ADVANTAGE: STRONG REPUTATION OF THE

COMPANY SPECIALIZED IN A GROUP OF
CUSTOMERS
P2

P3 DISADVANTAGE: RISK OF CONCENTRATION (THE

CUSTOMER GROUP MAY SUFFER BUDGET CUTS OR
S1 S2 S3 SHRINK IN SIZE)

ALL PRODUCTS
ONE SEGMENT
 4 SEGMENTATION STRATEGIES

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Unit 3: Positioning Unit 3: Positioning