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

2. 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

3. 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

4. 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

5. 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

6. 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

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

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

9. 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

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

11. 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

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

13. 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

14. 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