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Segmentation, Targeting, and Positioning

Building the Right Relationships with the Right Customers

Diploma in Marketing Management Jayasekera Management Centre Sahan Malind Perera

Steps in Segmentation, Targeting, and Positioning

6. Develop Marketing Mix for Each Target Segment 5. Develop Positioning for Each Target Segment 4. Select Target Segment(s)

Market Positioning

3. Develop Selection Criteria 2. Develop Profiles of Resulting Segments

1. Identify Bases for Segmenting the Market

Market Targeting

Market Segmentation

Steps in Market Segmentation, Targeting and Positioning

Market Segmentation Identify bases for segmenting the market Develop segment profiles Target Marketing Develop measure of segment attractiveness Select target segments Market Positioning Develop positioning for target segments Develop a marketing mix for each segment

Market Segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behaviour who might require separate products or marketing mixes.

Segmenting Consumer Markets

Geographical segmentation Demographic segmentation Most popular segmentation Psychotropic segmentation Lifestyle, social class, and personalitybased segmentation Behaviour segmentation

Geographic Segmentation Variables

World region or country
Region Neighbourhood City or metro size Density Climate


Demographic Segmentation Variables

Age Gender Family size Family life cycle Income

Occupation Education Religion Race Generation Nationality

Behaviour Segmentation Variables

Occasions Benefits User Status Attitude Toward the Product User Rates Loyalty Status Readiness Stage

Characteristic of an Effective Segmentation



Criteria for Market Segments



Characteristic for Effective Segmentation

Substantiation Identifiability Measurability
Segment must be large enough to warrant a special marketing mix. Segments must be identifiable and their size measurable.

Members of targeted segments must be reachable with Accessibility marketing mix. Unless segment responds to a Responsiveness marketing mix differently, no separate treatment is needed.

Advantages of Segmentation
Helps distinguish one customer group from another within a given market Facilitate proper choice of Target Market Make th marketing effort more effective and economic

Target Marketing

Target Market Consists of a set of buyers who share common needs or characteristics that the company decides to serve

Target Marketing
Evaluating Market Segments Segment size and growth Segment structural attractiveness Level of competition Substitute products Power of buyers Powerful suppliers Company objectives and resources

Market Coverage Strategies

Company Marketing Mix
A. Undifferentiated Marketing


Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3

B. Differentiated Marketing

Segment 1 Segment 2 Segment 3

Company Marketing Mix

C. Concentrated Marketing

Segment 1
Segment 2 Segment 3

Undifferentiated Targeting Strategy

Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.

Differentiated Targeting Strategy

A strategy used to select one segment of a market for targeting marketing efforts.

Concentrated Targeting Strategy

A strategy used to select one segment of a market for targeting marketing efforts.

Choosing a Target Marketing Strategy

Company resources The degree of product variability Products life-cycle stage Market variability Competitors marketing strategies

Developing a specific marketing mix to influence potential customers overall perception of a brand, product line, or organization in general.

Steps to Choosing and Implementing a Positioning Strategy

Step 1. Identifying Possible Competitive Advantages: Competitive Differentiation. Step 2. Selecting the Right Competitive Advantage: Unique Selling Proposition (USP). Step 3. Communicating and Delivering the Chosen Position. Step 4. Support the positioning strategy with a unique marketing mix

Perceptual Mapping
High Price



Low Price