1. Kodak Film products Products Consumers Kodak Ektar - $4.69
Kodak Royal Gold - $4.19
Kodak Gold Plus - $3.49
Kodak Funtime - $2.79
Consumers
Advanced amateurs and Professionals
Ordinary consumers for special occasions
Flagship
Both brand conscious and price-sensitive

2. Market Segmentation
There will be sub-groups of customers having similar needs and behaviours.
Each sub-group will have needs that are different to those of the other sub-groups.
The trick is to know how to define the sub-groups and what to do next.

3. Market Segmentation
Is the process of selecting appropriate segmentation variables to sub-dividing customers in a market
For the purpose of designing product/service propositions and marketing programmes to achieve organisational goals, satisfy customers and beat rivals

4. Segmentation Variables
Consumer
Customer Characteristics
Demographics
Socio-Economics
Geographic location
Personality and lifestyle
User capabilities
Product Related
Purchasing Behaviour
Usage Situation
Benefit Sought
Price sensitivity
Business-to-Business
The size and growth potential of the account
Geographic location
Sector and trade category
Supply chain relationship
User capabilities
Good solution = one which influences strategy and results in increased sales and profit

5. Segments - Not like This!
The overly simplistic view:
Big Cars
Medium Cars
Small Cars
Then, the additional cars
This is still Rover’s view!
Most car manufacturers have identified customer-driven segments:
Value: Skoda, Suzuki
Lifestyle: MX 5, Land Rover
Snob Appeal: Porsche, Bently
Technos: Audi, Saab
Safety & Security: Volvo, VW

6. Resulting Segments Must be...
Measurable - how many customers?
Substantial - worth targeting?
Accessible - can they be got at?
Stable - likely hood for rapid change?
Useful!

7. Market Segmentation Is... - Summaries
Essential! - because most markets are heterogeneous
Important! - because most companies have resource constraints
Changing! - because market evolves and new competition emerges over time
Only useful! - when it is linked to strategy and results in increased sales and profit

8. Marketing Strategy Market Segmentation Targeting
Branding and Positioning
Differential advantage

9. What Will I Learn Today?
To understand the rationale behind target marketing and positioning
To be familiar with the process of selecting target market segments and developing a positioning plan
To appreciate the dynamics of market evolution and the effect on target marketing and (re)positioning strategies

10. So, Why Do It? Helps with Ansoff Strategic Options:
Market penetration: more from existing customers at the expense of rivals.
Product development: better products to existing customers.
Market development: existing products to new customers.
Diversification: new products to new customers.

11. Target Marketing Strategies
A: Undifferentiated marketing Company marketing mix
B: Differentiated marketing Company marketing mix 1 Company marketing mix 2 Company marketing mix 3
C: Concentrated marketing Company marketing mix
Market
Segment 1
Segment 2
Segment 3

12. Midland Bank (HSBC) Corporate Small Business Private Private - Big!
Insurance
Mortgage
Investment
Type of relationship
Type of service mix
Therefore:
Full service segment
Current Account only
Internet customers
Telephone banking

13. The PLC and Segmentation Variables
Introduction stage
Personality and life style
User capabilities
Growth stage
Customers are responsive to a wide range of variables
Maturity stage
Price sensitivity
Service need
Decline stage
Personality and lifestyle
Consumer attitude

14. Positioning - Not Like This!
Whisky and brandy: Underpositioning
EMI Scanner: Overpositioning
Burger King: Confused positioning

15. Resulting positioning Must be
One or more of the following:
Important
Distinctive
Superior
Communicable
Pre-emptive
Affordable
Profitable

16. Things to remember...
Segmentation involves analysing the market; Positioning is an outcome of combining the marketing mix for a selected target market.
All elements of the marketing mix, as well as the actions of competitors and word-of-mouths, influence the image people hold of a brand.
Markets evolve over time, hence the need to re-assess a company’s target marketing and positioning.