Market Segments

and Targets

AJ.PHINYAR
 • Market Segmentation

• Targeting

• Positioning

• Customer Persona

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S

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 “When you try to be everything

to everyone, you accomplish being

nothing to anyone.”

- Bonnie Gillespie -

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You cannot sell all things to all people.

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Credit Picture: STP, consumerpsychologist USC Marshal (2018)
 • A market segment consists of a group of customers who share
a similar set of needs and wants.

• A customer segmentation model allows for the effective

allocation of marketing resources and the maximization
of cross-selling and up-selling opportunities.
(Searchcustomerexperience.techtarget.com, 2019)

Consumer Market Business Market

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 • Geographic Segmentation

• Demographic Segmentation

• Psychographics Segmentation

• Behavior Segmentation

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 • Nations

• States

• Regions

• Counties

• Cities

• Neighborhoods

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 • Age and Life-Cycle Stage

• Life Stage: Family Size, Family Life Cycle

• Gender

• Income

• Race and Culture: Nationality, Religion, Nationality, Social Class

• Occupation

• Education

10 • Generation
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Credit Picture: vecteezy.com
 • Personal Attitude

• Values

• Interest

• Personal traits

• Strategic Business Insight’s (SBI)

VALS™ framework: An Eight Part Typology
http://www.strategicbusinessinsights.com/vals/surveynew.shtml

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 • Needs and Benefits: Not everyone who buys a product has the same needs or
wants the same benefits from it.
• Decision Roles: Initiator, Influencer, Decider, Buyer, and User

• User and Usage-Related Variables:

• Occasions (Frequency)
• User Status (ex-, new, regular)
• Usage Rate (light, medium, heavy)
• Buyer-readiness Stage (5 stages funnel)
• Loyalty Status (Hardcore, split, shifting, switcher)
• Attitude • Multiple Bases
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 • Demographic: Industry, Company size, Location
• Operating Variables: Technology, User or nonuser status,
Customer capabilities
• Purchasing Approaches: Purchasing-function organization,
Power structure, Nature of existing relationship, General
purchasing policies, Purchasing criteria
• Situational Factors: Urgency, Specific application, Size or order
• Personal Characteristics: Buyer-seller similarity, Attitude toward
risk, Loyalty
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T

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 • Targeting: Process of selecting the segment to serve
• The firm's goals and strengths must fit with the needs of the
segment
• Firms have understood their strengths and weaknesses, then
match with a specific segment >> Competitive advantage

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 • Measurable - How many people in this segment?
• Substantial - large and profitable enough to serve
• Accessible - effectively reached (communication) and served
(distribution)
• Differentiable - distinguishable and respond differently to
different marketing-mix
• Actionable - effective programs can be formulated for
attracting and serving
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 • Michael Porter has identified five
forces that determine the intrinsic
long-run attractiveness of a market
or market segment
• Threat of intense segment rivalry
• Threat of new entrants
• Threat of substitute products
• Threat of buyers’ growing bargaining
power
• Threat of suppliers’ growing bargaining
power

18 Credit Picture: mindtools.com (2019)

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 Continuum of possible levels of segmentation that can guide
their target market decisions.
• Full Market Coverage: Mass Market
• Multiple Segment Specialization: Segmentation
• Single-Segment Concentration: Niche
• Individual Marketing: One-to-One

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 Some consumers resist being labeled:
old, poor-rich, race etc.

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P

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 • An “act of designing the company’s offering and image to
occupy a distinct place in the mind of the target market.”
• The objective of positioning is to locate the brand into the
minds of stakeholders; customers and prospect in particular.
• A recognizable and trusted customer-focused value
proposition can be the result of a successful positioning without
doing something to the product itself.
• It’s the rational and persuasive reason to buy the brand in
highly competitive target markets.
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 • Positioning create a customer-focused value proposition, a
cogent reason why the target market should buy a product or
service.
• Positioning requires that marketers define and communicate
similarities and differences between their brand and its
competitors. Specifically, deciding on a positioning requires:
1. Choosing a frame of reference
2. Identifying the optimal points-of-parity
3. Creating a brand mantra
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 By identifying the target market and relevant competition.

• Identifying Competitors

• Analyzing Competitors - SWOT

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 Identifying Potential Points-of-Difference and Points-of-Parity and
points of difference brand associations given that frame of
reference.
• Points-of-difference (PODs) - are attributes or benefits that
consumers strongly associate with a brand, positively evaluate,
and believe they could not find to the same extent with a
competitive brand.
• Points-of-parity (POPs) - are attribute or benefit associations
that are not necessarily unique to the brand but may in fact be
shared with other brands.
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Credit Picture: DMITRIISYTYI, rockstarsbm.wordpress.com (2014)
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 • Segmentation allows a brand to understand different sets or
groups of customers. This might tell us where a particular group
lives, their age range, and maybe even some of their typical
buying behavior.
• A customer persona (also known as a buyer persona) allows
brands to better understand these homogenous groups, and to
recognize key traits within them.

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 1. Researching / brand storming
2. Analyzing data: registration, current customer, sale
representative
3. Create customer persona platform:
• Who: customer profile / demographic
• What: Interest / Challenge / Concern / Goal
• Why: Pain Point / Needs & Expectations / Decision Criteria /
Perceived Barriers
• How: Customer Journey / Content type / Social media /
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Influences
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 Chapter 5: Marketing strategies and plan

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