SEGMENTATION

TARGETING
POSITIONING
 Chapter Questions:
• What are the different levels of market
segmentation?
• How can a company divide a market into
segments?
• How should a company choose the most
attractive target markets?
• What are the requirements for effective
segmentation?
MARKET SEGMENTATION
Segmenting is the process of knowing the
overview of the entire market and
classifying or grouping consumers based
on their distinct needs, characteristics, and
behaviors.
MARKET SEGMENTATION
MARKET SEGMENTATION
 MARKET TARGETING
Since you cannot serve all the market
segments, you can choose one or more
segments to serve. This process is called
market targeting. In this stage, the firm
thoroughly evaluates the segments and decide
how many and which ones to serve. Target
marketing involves the company’s decision on
what specific market segment to serve. The
chosen segment or segments to serve by your
firm is called target market. Target market is
the set of buyers sharing common
characteristics or needs.
 MARKET POSITIONING
The last important term in the three critical
marketing activities (STP) is positioning. Market
positioning is the way the product is defined
by consumers on important attributes. This
pertains to the special place your product
occupies in consumers’ minds relative to the
products offered by your competitors. This is
more importantly termed as the Brand’s mind-
share.
 SEGMENTATION PROCESS

NEED-BASED SEGMENT SEGMENT SEGMENT

SEGMENTATION IDENTIFICATION ATTRACTIVENESS PROFITABILITY
Identify and understand the Divide the market into Evaluate the attractiveness Assess the profitability of
needs and wants of the distinct segments based on of each segment based on each segment by analyzing
market. This step involves similarities in needs, factors such as size, growth factors such as the
conducting market characteristics, or behaviors. potential, competition, and segment's purchasing
research to gather This step involves grouping compatibility with the power, price sensitivity, cost
information about customers who share company's objectives and to serve, and potential for
customer preferences, common traits that resources. long-term profitability.
behaviors, and differentiate them from
demographics. other segments.
 SEGMENTATION PROCESS

MARKET MIX
SEGMENT SEGMENT ACID TEST STRATEGY
POSITIONING Develop a marketing mix
strategy for each segment
Develop a positioning Conduct a final evaluation based on its needs,
strategy for each segment of each segment to characteristics, and
based on its unique needs determine its viability and positioning. The marketing
and characteristics. potential for success. This mix includes product, price,
Positioning involves step involves analyzing the promotion, and distribution
creating a distinct image or segment's fit with the strategies tailored to each
identity for the product or company's overall strategy segment to maximize
service in the minds of the and its ability to deliver customer satisfaction and
target customers. sustainable growth and profitability.
profitability.
SEGMENTATION
TARGETING
POSITIONING