Segmentation, Targeting &

Positioning: Building the Right

Relationships with The Right
Customers
 Market Segmentation
Dividing a market into smaller
groups of buyers distinct needs,
characteristics, or behavior who
might require separate products or
marketing mixes
Target Marketing & Positioning
Target Marketing
– The process of evaluating each market
segment’s attractiveness and selecting
one or more segments to enter
Market Positioning
– Arranging for a product to occupy a
clear, distinctive, and desirable place
relative to competing products in the
minds of target customers
 Steps in Market STP

Market Target Marketing Market

Segmentation Positioning
Identify Bases for Develop measure Identify Bases for
Segmenting the of segment Segmenting the
market attractiveness market

Develop segment Select target Develop segment

Profiles segments Profiles
Major Segmentation Variables for
Consumer Markets
Geographic:
– World region or country
– Country region
– City or metro size
– Density
– Climate
Major Segmentation Variables for
Consumer Markets…(cont’d)
Demographic:
– Age
– Gender
– Family size
– Family life cycle
– Income
– Occupation
– Education
– Religion
– Race
– Generation
– Nationality
Major Segmentation Variables for
Consumer Markets…(cont’d)
Psychographic
– Social class
– Lifestyle Multiple
– Personality segmentation
Basis:
Behavioral • Combination of
– Occasions variables
– Benefits
•Re-segmenting
– User status
to narrower sub-
– Loyalty status
segment
– Readiness stage
– Attitude towards products
Segmenting Business Markets
Consumer and business markets use
many of same variables to segment
their markets: G-D-P-B
Additional variables:
– Operating characteristics
– Purchasing approaches
– Situational factors
– Personal characteristics
 Requirements for Effective
Segmentation
Measurable:
– Size, purchasing power and profiles
Accessible:
– Can effectively meet and served
Substantial:
– Large and profitable enough
Differentiable:
– Response differently to different marketing mix
Actionable:
– Effective programs can be design for attracting
and serving the segments
 Target Marketing
Target market:
– A set of buyers sharing common needs or characteristics
that the company decides to serve

Target marketing Strategies

Undifferenti Differentiat Concentrate Micro

ated (mass) ed d (niche) marketing
marketing (segmented) marketing (local or
marketing individual)
 Positioning for Competitive
Advantage
The company must decide what
position it wants to occupy

Marketers wants to develop unique

market position for their products
(POP & POD)
– Positioning Map
Developing Positioning Statement
Positioning statement:
– A statement that summarizes company
or brand positioning
Volvo: the safest, most durable wagon your family
can drive
Visa : It’s Everywhere You Want to Be
Axe : The axe effect
– Format: To (target segment and need) our
(brand) is (concept) that (point of difference)
– Take strong steps to deliver and communicate
the desired position to the target market
(marketing mix)