mkt segmentaton

7/27/2019 mkt segmentaton

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Market Segmentation,

Targeting, and Positioningfor Competitive Advantage


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Steps in Segmentat ion ,

Target ing , and Pos it ion ing

1. Identify Basesfor Segmenting the Market

2. Develop Profiles

of Resulting Segments

3. Develop Measuresof Segment Attractiveness

4. Select TargetSegment(s)

5. Develop Positioning

for Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation


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Step 1. Market Segmentation

Levels o f Market Segmentat ion

Mass MarketingSame product to al l consum ers

(no segmentat ion)

Segment Marketing

Different produc ts to one or more segments(som e segmentat ion)

MicromarketingProducts to su i t the tastes of indiv iduals or loc at ions

(com plete s egmentat ion)

Niche MarketingDifferent products to subgroups w ith in segments

( more segmentat ion)


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Step 1. Market SegmentationBases for Segment ing Consumer Markets

Geographic

DemographicAge, gender,

family size andlife cycle, or income

PsychographicSocial class, lifestyle,

or personality

BehavioralOccasions, benefits,uses, or responses

Nations, states,regions or cities


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Using Mult iple Segmentat ion

Bases: Geodemog raph ics


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Step 1. Market Segmentat ionBases fo r Segment ing Bus iness Markets

Basesfor Segmenting

Business

Markets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches


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Step 1. Market SegmentationBases for Segmenting Internat ional Markets

Political/Legal

Cultural Intermarket

EconomicGeographic

Industrial Markets


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Step 1. Market SegmentationRequ irements for Effect ive Segmentat ion

Size, purchasing power, profilesof segments can be measured.

Segments must be effectivelyreached and served.

Segments must be large orprofitable enough to serve.

Measurable

Accessible

Substantial

Differential

Actionable

Segments must responddifferently to different marketingmix elements & actions.

Must be able to attract and servethe segments.


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Step 2. Market TargetingEvaluat ing Market Segments

Segment Size and Growth Analyze sales, growth rates and expected profitability.

Segment Structural Attractiveness Consider effects of: Competitors, Availability of Substitute

Products and, the Power of Buyers & Suppliers.

Company Objectives and Resources Company skills & resources relative to the segment(s).

Look for Competitive Advantages.


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Step 2. Market TargetingMarket Coverage Strategies

Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3

Company

MarketingMix

CompanyMarketing

Mix

Company

Marketing Mix 1

Company

Marketing Mix 2Company

Marketing Mix 3

Market

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing


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Step 2. Market Targeting

Choos ing a Market-Coverage Strategy

CompanyResources

ProductVariability

Products Stagein the Product Life Cycle

MarketVariability

CompetitorsMarketing Strategies


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Step 3. Posit ion ing for Compet i tive

Advantage

Products Position - the place the productoccupies in consumers minds relative to

competing products; i.e. Volvo positionson safety.

Marketers must:Planpositions to give products the greatest advantage

Develop marketing mixes to create planned positions


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Step 3. Posi t ion ing fo r Competi t ive

Advan tage: Strateg ies

Against a

Competitor

Usage

Occasions

Away fromCompetitors

Product

Attributes

Product

Class

BenefitsOffered

Users

B

A

E

D

CH

G

F


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Steps to Choos ing and Implement ing

a Pos i t ioning Strategy

Step 1. Identifying a set of possiblecompetitive advantages: Competitive

Differentiation.

Step 2. Selecting the right competitiveadvantage.

Step 3. Effectively communicating adndelivering the chosen position to the

market.


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Develop ing Competi t ive

Differentiat ion

Product Service

Personnel Image

Areas for Competitive

Differentiation


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Select ing the Righ t Compet i t ive

Advantages

Criteria

forDetermining

WhichDifferences

to

Promote

Affordable Superior

Profitable

Preemptive

Distinctive

Important

Communicable

Documents

mkt segmentaton