CHAPTER 7

MARKET SEGMENTATION AND

POSITIONING
 WHAT I KNOW?
Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.
 
1. The process of dividing the market into homogenous parts or groups.
a.Demographic Segmentation
b.Market Segmentation
c.Segmentation Variables
d.Target Market

 
2. Segmentation variable that is most indicative of purchase action.
a.Alternative market
b.Behaviorgraphic
c.Demographic
d.Psychographic
3. The variables that represents the psychological profile of the consumers.
a.Alternative market
b.Behaviorgraphic
c.Demographic
d.Psychographic

 
4. The selected target market must be large enough in terms of quantity or total consumption capability. What does target
market means?
a.Target market must be ideal
b.Target market must be financially capable
c.Target market must be substantial
d.Target market must be user friendly

 
5. Consumer segmentation variables which describes the age, gender, social class and economic situation.
a.Behaviorgraphic
b.Demographic
c.Economic status
d.Socio-political
Target Market Segmentation
The necessity to divide the total population into parts or segments, each with different
characteristics is done in order to identify the segments whose marketing efforts will be focused on.

Figure . Market Segmentation Variables

ELEMENTS OF AN IDEAL TARGET MARKET
A company may decide its selection of its target market after consideration of its conformity with the
following elements:

SUBSTAN - Should be large enough in terms of

TIAL numbers
FINANCI - Must have the financial means to purchase
ALLY
CAPABL
E
REACHA - Must be within physical means to be
BLE informed of the product through
advertisements, and thus can afford to
purchase of the product

HOMOG - Must have similar positive reaction about

ENOUS the product
 WHAT’S MORE?
Read the following statement. Write A if you think that person described is an ideal target market
for the product and write D if not.
 
1. Naomi, a grade 11 student of Ismael Mathay, Sr. High School was offered Apple Macbook.
____
2. A Tricycle Toda Drivers were given orientation on the importance of using Bench Men’s Classic
Deo Spray. ____
3. Call center agents were given special installment scheme if they purchase Samsung A51 mobile
phone. ____
4. Grab Food Drivers were granted a free “Biker Insurance” for 3 months. ___
5. Wet Market vendors were offered a buy 1 take 1 Pasta voucher from Old Spaghetti House
Restaurant
Positioning is the act of establishing a strong brand image for a product. This includes telling the
market exactly what your product is, who it is for, what product category it belongs to, what its most
essential attributes or benefits are, and what is not. (Ilano, 2016)
Elements of a Good Brand Position
The word “brand” is not always well understood. Some people use the term
interchangeably with “company” as a kind of shorthand term. A “brand” is
actually something very specific. It is, in essence, a promise to the buyer about
the kind of product or experience they are purchasing. These are elements of a
good brand position. • A brand must select a
position that is not
UNIQUE currently occupied by
another brand.

• Customers consideration
BENEFICIAL on the kind of service
offered by the company.

• Once a brand position is

selected, it must ensure
CREDIBLE that it performs and fulfills
the promise of its position.
Category Membership
The kind of brand positioning involves properly defining what category your product belongs
to. It helps the consumer mentally prepare themselves to place products into distinct categories.
As marketer would want to have full control over how consumers would define or categorize
their products.
Red Bull is an energy drink. This category is different from fruit juice drinks and cola
beverages. Consumer will use this product for specific function of staying awake or boosting
energy.
Flintstones Chewable Vitamins is referred to as a childrens’ vitamins which is still within the
large vitamins and supplements market.
McDonald is a fast food restaurant business along with other large fast food restaurants like
Jollibee, KFC and Chowking.
Identifying and Selecting Competitive Advantage

There are three major types of competitive advantage:

Cost Advantage – results when a firm has the ability to produce a product or service at a lower cost
compared to its competitors.
Differential Advantage – when a company’s product or service differs from its competitors and are
perceived by consumers to be better or of greater value.
Focus Advantage – when a company knows its target market very well, and can service its needs
better than any of its competitors
Learning the Skill: Identify the most obvious element used in creating a good brand position or Tagline.
Write A for Unique, B for Beneficial, and C for Credible

_________
1. “You’re in Good Hands” – MetroBank
_________
2. “Say Hello to the Future” – Iphone
_________
3. “The roasted chicken that taste better even without the sauce” –
Chooks-to-Go

_________
4. “A drink that offers refreshing drink with healthy benefits for
one’s well being” – C2 green tea

_________
5. “Loving Every Moment” – Toyota Innova
 INDIVIDUAL ACTIVITY
Communicate their Brand’s Position
Choose at least 2 popular brand of any category. Identify and describe the elements present in
communicating the product’s brand position
  BRAND 1:_________________ BRAND 2:________________

Packaging    

Labeling    

Selling Price    

Advertising    

Brand Endorser    

Tagline    
 QUIZ NO. 5
_________
1. It is pointless to adopt a brand position if it is not
communicated properly to its target market.
__________
2. For up and coming brands, perceptual mapping is useful in
segmenting the industry perceived by the c onsumers.
_________
3. The purpose of brand positioning is for consumer to recall
the product.
_________
4. A brand position must ensure that it performs and fulfills the
promise of its position.
_________
5. The secret to effectively position your product is by making
sure that your product is placed in a product category to have a
firm knowledge of the product’s strength as compared to other
brand.