Yasas Hewage

Snr. Lecturer Strategy

Segmentation, Targeting and Positioning

• Mass Marketing
• Segmented Marketing
• Niche Marketing
• Micro Marketing
 Segmentation
• Segmentation is
the process of
breaking down the
mass market into
meaningful buyer
groups
based on selected
attributes
 Bases for Segmentation
• Consumer bases • B2B bases
– Demographics – Demographic
– Socio-economic (industry/size)
– Geographic – Geographic
– Personality and – Purchasing
lifestyle Approaches
– Purchase occasion – User status
– User status – Usage rate
– Usage rate – Order size
– Benefits sought – Benefits sought
Geodemographics

• Is the
identification of
market segments
based on where
people live and
their lifestyles.
Psychographics Innovators
Innovators are successful, sophisticated,
take-charge people with high self-esteem…
VALS Framework Thinkers
(SRIC- BI) SRI consultants Business Thinkers are motivated by ideals.
They are mature, satisfied, comfortable….
Intelligence Achievers
Motivated by the desire for achievement,
Achievers have goal-oriented lifestyles and
a deep commitment to career and family…
Experiencers
Experiencers are motivated by
self-expression. As young, enthusiastic,
and impulsive consumers
Believers
Like Thinkers, Believers are motivated by
ideals. They are conservative
Strivers
Strivers are trendy and fun loving. Because
they are motivated by achievement, Strivers
are concerned about the opinions and
approval of others.
Makers
Like Experiencers, Makers are motivated by self-
expression. They express themselves and experience
the world by working on it
Survivors
Survivors live narrowly focused lives. With few
resources with which to cope,
Bases of
Segmentation
23 - 28 29 - 35 36- 45 46 +
Age
Male Female She male Transvestit
Gender es
\35K to 50K 51K – 100K 101K – 150k 151k - 300K 300K 1M +
Income (monthly) – 1M

Upwardly Working Executive Master of Super Sporty/O Ethical

Personality & mobile family universe ut door animal
Boss star
Lifestyle executive man/Women

Economy & Style & Speed & Power Unique Status

Benefit Sought Fashion
Practicality & Classy Symbol

High Medium low

User Rate

Segment A
Female, Age 23 to 35 with an income 35K to 50K,
Working with Family looking for Economy and Practicality and High use
Segment B
Female, Age 28 to 45 with an income 100K to 300K,
Working with Family looking for Style and Fashion and High use
To be useful…segments should be

• Measurable - The segments revealed

should be easy to measure.

• Substantial - The segments revealed

should be large enough to serve.

• Accessible - The marketer should be

able to reach the segments revealed.

• Differentiable – Conceptually
distinguishable and respond to differently
to different marketing mix elements
programs

• Actionable – Effective programs

should be able to be formulated
What about B2B or an NGO ?

• Can you carve out

Segments
 Consumer Business
Home & Small Medium & Government, Education &
Home Office Business Large Healthcare
Business (public
sector)
Consumer Corporate Emerging Projects
Corporates

Now handled by Small Executives Government & Developers

‘Lenovo’ Business Education

Residential Enterprise SME

Suntel
 Targeting

• Once Segments are

Identified it must
decide how many and
which ones to target
Targeting
• (1) Evaluate each
Segment
- Segment
attractiveness
- Companies objectives
an resources
• (2)Targeting Strategies
– single segment to full
market coverage
 Red Bull® is an Energy Drink that works.

• Red Bull ® Energy Drink for

tired minds and exhausted
bodies
– Supplies lost substances and reduces
harmful substances.
– Provides immediate energy and vitamins.

• Its More than just a hot secret for the

– Night owl and the non-stop party-animal.

– It is appreciated by a wide range of people,

such as the
• Overworked taxi driver,
• The stressed manager,
• The exam-anxious student
• The pressured journalist….
• Surfers in the summer
• Snowboarders in the winter.
 Coca Cola Company

Soft Drinks Energy Drinks Sports drinks

Coke,Nalu,zenzavo Full throttle, TAB energy, POWERADE,Aquarius
Sprite,Fanta Burn

Juices/Juice Drinks Tea & Coffee Water

Mazza, Hi-C,Andina, Georgia, Golden Peak, Ciel,Valser
Minute Maid Haru Green tea
Share of thirst/Beverage Market
Positioning

Yasas Hewage
Snr. Lecturer Strategy
 Positioning
• Positioning is
Designing the
companies Offering
and Image to
occupy a Distinctive
place in the Mind of
the Target Customer
 Positioning Concepts
• Positioning concepts
• Functional positions
– Solve problems
– Provide benefits to customers
• Symbolic positions
– Self-image enhancement
– Ego identification
– Belongingness and social
meaningfulness
• Experiential positions
– Provide sensory stimulation
– Provide cognitive stimulation
• Further Concepts
• Re-positioning: involves
changing the identity of a
product, relative to the identity
of competing products, in the
collective minds of the target
market.
• De-positioning: involves
attempting to change the
identity of competing products,
relative to the identity of your
own product, in the collective
minds of the target market.
• Perceptual mapping is a
graphics technique used
by marketers that
attempts to visually
display the perceptions of
customers or potential
customers.

• This sample of consumers felt

Porsche was the sportiest and
classiest of the cars in the study (top
right corner).

• They felt Plymouth was most practical

and conservative (bottom left corner).

• Cars that are positioned close to each

other are seen as similar on the
relevant dimensions by the consumer

• For example consumers see Buick,

Chrysler, and Oldsmobile as similar