Principles and Practice of Marketing David Jobber Chapter 7 Market Segmentation and Positioning 1 1

The advantages of market segmentation Target market selection Market segmentation Tailored marketing mix Differentiation Opportunities and threats D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 2

The process of market segmentation and target marketing The disaggregated market The segmented market The target market 1 2 3 1 2 3 c1 c3 c2 c1 c5 c7 c3 c4 c8 c1 c5 c7 c3 c4 c8 c4 c6 c2 c2 Marketing mix targeted at segment 3 c5 c7 c6 c6 c8 The characteristics of individual customers are understood Customers are grouped into segments on the basis of having similar characteristics Segment 3 is judged to be most attractive and a marketing mix strategy is designed for that target market D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 3

Segmenting consumer markets Consumer segmentation Behavioural Psychographic Profile Benefits sought Lifestyle Demographic Purchase occasion Personality Socio-economic Purchase behaviour Geographic Usage Perceptions and beliefs D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 4

Macro and microsegmentation of organizational markets Macrosegment 1 (large companies) Macrosegment 2 (medium-sized companies) Macrosegment 3 (small companies) Macrosegment 1 (prime choice criterion: reliability) Macrosegment 2 (prime choice criterion: convenience) Macrosegment 3 (prime choice criterion: price) D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 5

Segmenting organizational markets Organizational segmentation Organizational size Industry Geographic location Macrosegmentation Microsegmentation Choice Decision-making unit structure Decision-making process Buy class Purchasing organization Organizational innovativeness D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 6

Target marketing strategies Undifferentiated marketing Differentiated marketing Focused marketing Customized marketing D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 7

Target marketing strategies Undifferentiated marketing Marketing mix Whole market D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 8

Target marketing strategies Differentiated marketing Segment 1 Segment 2 Segment 3 Marketing mix 1 Marketing mix 2 Marketing mix 3 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 9

Target marketing strategies Focused marketing Segment 1 Segment 2 Segment 3 Marketing mix D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 10

Target marketing strategies Customized marketing Customer 1 Customer 2 Customer 3 Marketing mix 1 Marketing mix 2 Marketing mix 3 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 11

Keys to successful positioning Clarity Consistency Credibility Competitiveness Successful positioning D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 12

A perceptual map of supermarkets High price A B C D Wide product range Narrow product range G X F E Low price D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 13

Repositioning strategies Product Same Different Image repositioning Product repositioning Same Target market Intangible repositioning Tangible repositioning Different D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 14