Chapter 6: Segmentation, targeting and positioning

Market: group of individuals or organisation with needs, wants, ability to buy and desire to spend

Segmentation: dividing large market/mass market into smaller homogenous markets (segments)
based on commonalities
- We do this because there are too many buyers with different interest needs and
preferences
- To better allocate limited resources

Segmentation bases
Demographic

Geographical
Behavioural

Psychographic
Based on personalities, lifestyle, values, opinions, activates

Targeting strategies: evaluating attractiveness of each segment and selecting one or more
segments.
- Undifferentiated (one label for all)
- Concentrated, focus, niche (one label
one type of buyer)
- Multi-segment (many labels many
different clients)
- Micromarketing (reach a target group
in a niche market; 99.9% match with
the idea the customer has of the
product)
Target markets must be identified, reachable;
firms must respond to needs large enough to
pursue

Choose target market based on

- size of segment
- attractiveness of segments
- potential growth and its sustainability
- company’s objective and resources
- accessibility to the segment
- differentiability and competition

Positioning: the idea you clients have about you, what attributes are attributed to you brand
versus the competition
- Brand leadership
- Head-on or challenger