1. Segmenting, Targeting
and Positioning:
Building Right
Relationships with
Right Customers
Chapter 7
Group 4

2. Steps in Segmenting, Targeting and
Positioning

3. Market Segmentation
Dividing a market into smaller
groups (segments) of buyers
with distinct needs,
characteristics or behavior who
might require separate
products or marketing mixes.

4. Target Marketing
Evaluating each market
segment’s attractiveness
and selecting one or
more of the market
segments to enter.

5. Market Positioning
Setting the competitive
positioning for the
product and creating a
detailed marketing
mix.

6. Market
Segmentation
Segmenting Consumer
Markets

7. Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation

8. Geographic Segmentation
Dividing the market into
different geographical
unit such as nations,
regions, states,
countries,cities or even
neighborhood

9. l
Segmentatio
n
McDonald in Middle East offers any
kind of meal that is chicken or beef

10. l
Segmentatio
n
McDonald in New Zealand, offers
KiwiBurger. Kiwi is a local basic food to
its country.

11. l
Segmentatio
n
Main idea to serve coke is when it is
cold so Coca-cola focuses on hot areas
of the world. .

12. Demographic Segmentation
Divides the market into groups
based on variables such as age,
gender, family size, family life
cycle, income, occupation,
education, religion, race,
generation, and nationality.

13. Demographic Segmentation
•Age & life-cycle
Segmentation
•Gender
Segmentation
•Income
Segmentation

14. c
Segmentatio
n
Age & life Cycle
Segmentation
Colgate for Kids & Colgate Total

15. c
Segmentatio
n
Age & Life Cycle
Segmentation
Baby Bench &Bench

16. c
Segmentatio
n
Gender
Segmentation

17. ic
oke has small returnable glasses price ranges from P7-12. For middle people, it has non-returnable bottle. For high income peo
Segmentati
on
Income
Segmentation:

18. PSYCHOGRAPHIC
SEGMENTATION
Dividing the market into
different groups based on
social class, lifestyle or
personality characteristics.

19. PSYCHOGRAPHIC
SEGMENTTION
•Social Class
•Lifestyle
•Personality

20. Social
Class
Different consumers
fall in different
social classes. This
depends mainly on
their buying power.
The buying power is
affected by the
background of the
customer, his
income as well as
his spending habits.

21. Lifestyle
EVERYONE HAS DIFFERENT
CLOTHING HABITS BASED
ON THEIR LIFESTYLES. THE
CUSTOMER MIGHT BE
SCHOOL GOING, COLLEGE
GOING, OFFICE GOING OR
OTHER.

22. Personality
Personality in psychographic
segmentation is dependent on both –
lifestyle as well as social class. A person
will have a rich personality only if he has
high buying power as well as the taste in
clothes to maintain such a lifestyle.
(

23. BEHAVIORAL
SEGMENTATION
•Dividing a market into groups
based on consumer knowledge,
attitude, use or response to a
product.

24. BEHAVIORAL
SEGMENTATION
•Occasion Segmentation
•Benefits Sought
•User Status
•Usage Rate
•Loyalty Status

25. Occasion
Segmentatio
n
Dividing a market
into groups
according to
occasions where
buyers get the idea
to buy, actually
make their
purchase or use the
purchased item.

26. Benefit
Segmentatio
n
Dividing the market into
groups according to the
different benefits that the
consumers seek from the
product.
Requires finding the major
benefits people look for in
the product class, the kinds
of people who look for each
benefits and the major
brands that deliver each
benefit

27. User Usage
Status Rate
• Markets can be • Markets can also
segmented into be segmented into
groups of nonusers, light, medium and
ex-users, potential
heavy product
users, first time users
and regular users of a users
product.

28. Loyalty Status
Consumers can be loyal to
brands, store and
companies.

29. Using Multiple
Segmentation Bases
Example of mulitvariable
segmentation is
Geodemographics
Segmentation.

30. Leading lifestyle segmentation systems
is the PRIZM

31. PRIZM:
Potential Rating Index
for Zip Markets

32. Marketers can use MyBestSegments to guide
marketing campaigns and media strategies
for specific market segments by answering:
Who are the potential
customers?
What are they like?
Where can I find them?
How can I reach them?

33. Examples of PRIZM
Segmentation Systems:
•“Blue blood estates” – suburban areas
populated by elite, super-rich families.
•“shotguns & pickups” - populated by rural
blue-collar workers & families.
•“hispanic mix” – cluster are highly brand
conscious, quality conscious and brand loyal.
•“money & brains” – they buy a lot of
books.

34. Segmenting Business Markets
Operating CharacteristicsPurchasing Approaches
Situational Factors Personal Characteristics

35. Segmenting International
Markets
Geographic Location
Economic Factors
Political and Legal Factors
Cultural Factors

36. Intermarket
segmentation-
Forming segments of
consumers who have similar
needs and buying behavior
even though they are located
in different countries.

37. Requirements for Effective
Segmentation
Measurable Accessible
Substantial
Differentiable Actionable

38. Target
Marketing
Evaluating Market
Segments

39. Evaluating Market
Segments
Segment Size and Growth
Analyze current segment sales, growth rates,
and expected profitability.
Segment Structural Attractiveness
Consider effects of: competitors, existence of
substitute products, and the power of buyers &
suppliers.
Company Objectives and Resources
Examine company skills & resources needed
to succeed in that segment.
Offer superior value and gain advantages over
competitors.

40. Selecting Target Market
Segments
Target Market
consists of a set of
buyers who share common
needs or characteristics
that the company decides
to serve.

41. Target Marketing Strategies

42. Undifferentiated (mass) Marketing
Firm decides to ignore market segment
differences and target the whole market with
one offer.
Focus is on common (not different) needs
of the consumers.

43. Differentiated (segmented)
Marketing
Firm targets several market
segments and designs separate offers
for each.
•The goal is to have higher sales and
a stronger position with each market

44. Concentrated (niche)
Marketing
Firm goes after a large share of
one or a few segments or niches.

45. Micromarketing
Practice of tailoring products &
marketing programs to the needs and
wants of specific individuals and
locations. Tailoring brands
Local Marketing:
and promotions to the needs and wants
of local customer groups—cities,
neighborhoods, specific stores.
Individual Marketing: Tailoring
products and marketing programs to the
needs and preferences of individual
customers.

46. Choosing a Target Marketing
Strategy
Company Resources
Product Variability
Product’s Life-Cycle Stage
Market Variability
Competitors’ Marketing Strategies

47. Socially Responsible Target
Marketing
Smart targeting helps both companies
and consumers.
Target marketing sometimes generates
controversy and concern.
•Vulnerable and disadvantaged can be
targeted.
•Cereal, cigarette, beer, and fast-food
marketers have received criticism.
•Internet has raised fresh concerns about
potential targeting abuses.

48. Positioning for
Competitive Advantage

49. Product Position
Is the way the product s
defined by consumers on
important attributes – the place
the product occupies in
consumers’ minds relative to
competing products.

50. Positioning Map
Positionin
g maps for
Large
luxury
SUVs

51. Choosing a Positioning
Strategy
#1 Identify a
set of possible #2 Choose the right
competitive advantages on competitive advantages
which to build a position
#3 Select an overall
positioning strategy