1. MARKETING STRATEGY O.C. FERRELL MICHAEL D. HARTLINE 6 Market Segmentation, Target Marketing, and Positioning

2. 6-2 Market Segmentation Strategies (1 of 2) Traditional Approaches to Market Segmentation –Mass Marketing –Differentiated Marketing Multisegment Approach Market Concentration Approach –Niche Marketing

3. 6-3 Mass Marketing Strategy From Exhibit 6.1 (1 of 4)

4. 6-4 Multisegment Strategy From Exhibit 6.1 (2 of 4)

5. 6-5 Market Concentration Strategy From Exhibit 6.1 (3 of 4)

6. 6-6 Niche Marketing Strategy From Exhibit 6.1 (4 of 4)

7. 6-7 Market Segmentation Strategies (2 of 2) Emerging Approaches to Segmentation –One-to-One Marketing –Mass Customization –Permission Marketing Criteria for Successful Segmentation –Identifiable and Measurable –Substantial –Accessible –Responsive –Viable

8. 6-8 Bases for Segmenting Consumer Markets Behavioral Segmentation –Segments based on actual behavior or product usage Demographic Segmentation –Segments based on demographic factors (e.g., gender, age, income, education, etc.) Psychographic Segmentation –Segments based on state-of-mind issues (e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.) Geographic Segmentation –Segments based on geographic location

9. 6-9 Bases for Segmenting Business Markets Type of Organization Organizational Characteristics Benefits Sought or Buying Processes Personal and Psychological Relationship Intensity

10. 6-10 Basic Target Marketing Strategies Exhibit 6.6

11. 6-11 Relative perception Process of creating favorable relative position: –(1) Identification of target market –(2) Determination of needs, wants, preferences and benefits desired –(3) Examination of competitors’ characteristics and positioning –(4) Comparison of product offerings with competitors –(5) Identification of unique position –(6) Development of a marketing program –(7) Continual reassessment Differentiation and Positioning (1 of 2)

12. 6-12 Differentiation Strategies –Product Descriptors Product features Advantages Benefits –Customer Support Services –Image Positioning Strategies –Strengthen the Current Position –Repositioning –Reposition the Competition Differentiation and Positioning (2 of 2)