Principles and Practice of Marketing

David Jobber

Chapter 7
Market Segmentation and Positioning
 The advantages of market
segmentation
Target
market
selection

Market Tailored
Differentiation marketing
segmentation
mix

Opportunities
and threats

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 2

 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 c3 c1 c3
c4
c6 c5 c2 c4 c5 c2 Marketing
c4
c5 mix

c7 c8 c7 c6 c8 c7 c6 targeted at
segment 3 c8

The characteristics of Customers are Segment 3 is judged

individual customers grouped into segments to be most attractive
are understood on the basis of having and a marketing mix
similar characteristics strategy is designed
for that target market

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 3

 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

 Macro and microsegmentation of
organizational markets
Organizational market

Macrosegment 2
Macrosegment 1 Macrosegment 3
(medium-sized
(large companies) (small companies)
companies)

Macrosegment 1 Macrosegment 2 Macrosegment 3

(prime choice criterion: (prime choice criterion: (prime choice criterion:
reliability) convenience) price)

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 5

 Segmenting organizational markets
Organizational segmentation

Macrosegmentation Microsegmentation

Choice
Organizational size
Decision-making unit structure

Industry
Decision-making process

Geographic location
Buy class

Purchasing organization

Organizational innovativeness

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 6

 Target marketing strategies

● Undifferentiated marketing

● Differentiated marketing

● Focused marketing

● Customized marketing

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 7

 Target marketing strategies

● Undifferentiated marketing

Marketing mix Whole market

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 8

 Target marketing strategies

● Differentiated marketing

Marketing mix 1 Segment 1

Marketing mix 2 Segment 2

Marketing mix 3 Segment 3

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 9

 Target marketing strategies

● Focused marketing

Segment 1

Segment 2 Marketing mix

Segment 3

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 10

 Target marketing strategies

● Customized marketing

Marketing mix 1 Customer 1

Marketing mix 2 Customer 2

Marketing mix 3 Customer 3

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 11

 Keys to successful positioning

Clarity Consistency

Successful positioning

Credibility Competitiveness

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 12

 A perceptual map of supermarkets
High
A price

Wide Narrow
product product
range G range

X
F
E
Low
price
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 13
 Repositioning strategies

Product
Same Different

Image Product
Same
repositioning repositioning

Target
market
Intangible Tangible
Different
repositioning repositioning

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 14