1. Segmenting, Targeting and positioning
Topic Six: Identifying customer values
Segmenting, Targeting and positioning

2. Objectives Identifying Market Segments Choosing Target Markets
Positioning for competitive advantages

3. Steps in Market Segmentation, Targeting,and Positioning
5. Identify
possible
positioning
concepts for
each target
segment
6. Select,
develop, and
communicate
the chosen
concept
Market
Positioning
1. Identify
segmentation
variables and
segment the
market
2. Develop
profiles of
resulting
segments
Market
Segmentation
3. Evaluate
attractiveness
of each
segment
4. Select the
target
segment(s)
Market
Targeting

4. Basic Market-Preference Patterns
(a) Homogeneous
preferences
Sweetness
Creaminess
(b) Diffused
preferences
Creaminess
Sweetness
(c) Clustered
preferences
Creaminess
Sweetness

5. Market-Segmentation Procedure
Survey
Motivations
Attitudes
Behavior
Analysis
Factors
Clusters
Profiling

6. Bases for Segmenting Consumer Markets
Geographic
Region, City or Metro
Size, Density, Climate
Demographic
Age, Gender, Family size and Life cycle, Race, Occupation, or Income ...
Lifestyle or Personality
Psychographic
Occasions, Benefits, Uses, or Attitudes
Behavioral

7. Bases for Segmenting Business Markets
Demographic
Operating Variables
Purchasing Approaches
Situational Factors
Personal Characteristics

8. Effective Segmentation
Measurable
Effective Segmentation
Substantial
Size, purchasing power, profiles of segments can be measured.
Accessible
Segments must be large or profitable enough to serve.
Differential
Segments can be effectively reached and served.
Actionable
Segments must respond differently to different marketing mix elements & actions.
Must be able to attract and serve the segments.

9. Additional Segmentation Criteria
Ethical Choice of Market Targets
Segment Interrelationships & Supersegments
Segment-by-Segment Invasion Plans
Intersegment Cooperation

10. Five Patterns of Target Market Selection
Single-segment
concentration
Selective
specialization
M1 M2 M3 P1 P2 P3
Product
specialization
M1 M2 M3 P1 P2 P3 P1 P2 P3
M1 M2 M3
P = Product
M = Market
Market
specialization
M1 M2 M3 P1 P2 P3
M1 M2 M3
Full market
coverage P1 P2 P3

11. Segment-by-Segment Invasion Plan
Customer Groups
Truckers
Railroads
Airlines
Large
computers
Product Varieties
Personal
Mid-size
Company B
Company C
Company A

12. Product Differentiation
Form
Fea-
tures
Perfor-
mance
Quality
Conform-
ance
Quality
Dura-
bility
Relia-
bility
Repair-
ability
Style
Design

13. Services Differentiation
Ordering
Ease
Installation
Customer
Consulting
Miscellaneous
Services
Delivery
Customer
Training
Maintenance
& Repair

14. Image Differentiation
Media
Symbols
Atmosphere
Events

15. Differences Worth Establishing
Important
Profitable
Distinctive
Differences Worth
Establishing
Affordable
Superior
Preemptive

16. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind.

17. Perceptual Map Live shows Easy to reach Little waiting Good food
1.0
0.8
0.6
0.4
0.2
-0.2
-0.4
-0.6
-0.8
Economical
Fun rides
Exercise
Fantasy
Good food
Easy to reach
Educational,
animals
Little waiting
Live shows
Magic
Mountain
Japanese
Deer Park
Busch
Gardens
Knott’s
Berry
Farm
Lion
Country
Safari
Marineland
of the
Pacific
Disneyland