1. Segmentation, Targeting, Positioning
• Segmentation
– Divide the market into segments
– Gather further information on segments
• Targeting
– Determine most attractive target(s)
– Select targeting strategy
• Positioning
– Develop positioning for each targeted segment
– Develop marketing mix for each targeted segment

2. Segmentation, Targeting, Positioning
• Reasons to segment
– Allows firm to craft marketing mixes that better appeal to specific groups
• Understand competitive conditions
• Customize products
• Customize distribution, pricing
• Customize marketing communications
• Reasons not to segment
– Cost

3. Segmentation, Targeting, Positioning
• Criteria for segmentation
– Similar within, different across
– Measurable
– Substantial
– Actionable
– Accessible
• Bases for segmentation
– Demographic
• Age, income, gender, family size, ethnicity, nationality, etc.
– Geographic

4. Segmentation, Targeting, Positioning
• Bases for segmentation
– Psychographic
• AIO, lifestyle, life cycle
– Behavioral
• Usage, occasion for use, benefits sought
– Organizational markets
• Many of the same, geography, size, etc.
• SIC/NAICS

5. Segmentation, Targeting, Positioning
Sensory Sociables Worriers Independents
Benefit Bright Cavity
Sought Flavor Teeth Prevention Price
Demographic Teens, Young
Strengths Children Adults Families Men
Other Like Heavy Heavy
Behavioral Spearmint Smokers Users Users
Personality, Self-involved, High Hypochondriac, High
Lifestyle hedonistic sociability, conservative autonomy,
active value-oriented
Brand Colgate, Rembrandt, Crest, Brand on sale
Preference Aim Close-up Mentadent

6. Segmentation, Targeting, Positioning
• Evaluating segments
– Additional data beyond primary basis of segmentation
– Size
– Growth
– Structural attractiveness
• Five forces model:
– Rivalry
– Suppliers
– Vendors
– Substitutes
– New entrants

7. Segmentation, Targeting, Positioning
• Targeting
– Undifferentiated
– Differentiated
– Niche
• Micromarketing
– Mass customization

8. Segmentation, Targeting, Positioning

9. Segmentation, Targeting, Positioning

10. Segmentation, Targeting, Positioning
• Positioning
– Customer perception
• Back to generic strategy, core competencies
• Piece of customer’s mind
– Basis for all further Marketing decisions
• Product
• Distribution
• Price
• IMC
– Multidimensional scaling

11. Segmentation, Targeting, Positioning
Multidimensional Scaling
Touch of class
Proud to own
Distinctive looking
Lincoln
Porsche
Cadillac
BMW
Mercedes
Chrysler
Pontiac
Buick
Conservative looking Oldsmobile Spirited performance
Appeals to older people Appeals to young people
Fun to drive
Sporty looking
Ford Chevrolet
Datsun
Toyota
Dodge
Plymouth
VW
Very practical
Provides good gas mileage
Affordable