2. Market Segmentation, Targeting, and Positioning
Chapter 6
Market Segmentation, Targeting, and Positioning
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Chapter Goals
Related concepts: market segmentation, target marketing, and positioning
Process of market segmentation, its benefits and conditions for use
Target-market strategies
Steps in developing a positioning strategy
Methods of forecasting demand of market segments
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

4. Markets MARKET SEGMENTS TARGET MARKET MARKET SEGMENTATION
Groups of customers with different wants,
buying preferences or product-use behavior
TARGET MARKET
A market segment for which
the seller designs a marketing mix
MARKET SEGMENTATION
The process of identifying and describing
potential target markets

5. Market Segmentation Process of dividing the total market
for a good or service into several smaller,
internally homogeneous groups
Members of each group are
similar with respect to the factors
that influence demand

6. Process of Market Segmentation
Identify wants within a market
Identify characteristics
Determine size and satisfaction

7. Market Segmentation Conditions
Measurable
and
Obtainable Data
Large enough
to be
Profitable
Segment is
Accessible
MICROMARKETING
Treat each single customer
as a separate segment

8. Market Segmentation - First Cut
Customer’s reason for buying
CONSUMER
Purchase for personal use
BUSINESS
Purchase to use in organizations,
to resell, or to make other products

9. Segmentation Bases for Consumer Markets

10. Segmenting Business Markets

11. Target-Market Strategy
Market-aggregation
Strategy
“mass-market”
“undifferentiated-market”
and
Product differentiation
Single
Marketing
Strategy
“shotgun”

12. Target-Market Strategy
One
Marketing
Mix
Single-Segment
Strategy
“concentration ”
NICHE
MARKETERS

13. Target-Market Strategy
Multiple
Marketing
Mixes
Multiple-Segment
Strategy

14. Selecting a Target Market Guidelines
Compatible
with company’s goals
Match
market opportunity
with resources
Profit that
justifies investment
Competitors
are few and/or weak

15. Positioning Firm creating and maintaining
in the minds of a target market a particular
image relative to competing products
Select position concept
THREE STEPS
Design the feature that
conveys position
Coordinate the marketing mix
to convey position

16. Perceptual Map

17. Forecasting Market Demand
MARKET SHARE
Proportion of total sales of a product
during a stated period
in a specific market
that is captured by a single firm
MARKET FACTOR
1) exists in the market
2)is measurable
3)is related to the demand
for a product in a known way

18. Forecasting Market Demand
MARKET POTENTIAL
Total product sales
of a product
during a period
in a market
under ideal conditions

19. Forecasting Market Demand
SALES POTENTIAL
Portion of market potential
that a specific company
could expect
under ideal conditions

20. Forecasting Market Demand
SALES FORECAST
Estimate of sales
For one company
a stated period
during a period
in a specific market
assuming
a defined marketing plan

21. Methods of Sales Forecasting
Market-Factor
Analysis
Survey of
Buyer Intentions
Test
Marketing
Past Sales
and
Trend Analysis
Sales-Force
Composite
Executive
Judgment

22. Key Terms and Concepts Market segments Target market
Market segmentation
Micromarketing
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Personality
Lifestyle
Values
Behavioral segmentation
Market-aggregation strategy
Product differentiation
Single-segment strategy
Niche marketers
Niche markets
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

23. Key Terms and Concepts Multiple-segment strategy Position Positioning
Repositioning
Demand forecasting
Market share
Market factor
Market potential
Sales potential
Sales forecast
Market-factor analysis
Direct-derivation method
Correlation analysis
Multiple correlation
Survey of buyer intentions
Test marketing
Past sales analysis
Trend analysis
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

24. Key Terms and Concepts Sales-force composite Executive judgment
Delphi method
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.