SEGMENTATION,

TARGETING,
POSITIONING
INTRODUCTION

Market segmentation

Choice of target markets

Competitive positioning

 Market segmentation : identifying the most

productive bases for dividing a market,
identifying the customers in different segments
and developing segment descriptions
 Choice of target : evaluating the attractiveness
of different market segments, parts of segments
(niches) or group of segments and choosing which
should be targets for our marketing
 Competitive positioning : identifying the
positioning of competitors (in the market and in
target segments or niches), to develop our own
positioning strategy
 Iteration : understanding competitor’s positioning
and the possible positioning strategies open to us
should influence our thinking about the
attractiveness of different market segments and
the choice of market targets and may change the
way we segment our market leading to revised
target choices and positioning approaches.
PRINCIPLES OF COMPETITIVE
POSITIONING
 Positioning is the act of designing the company offering and image so
that they occupy a meaningful and distinct competitive position in
the target customer’s minds
 It’s important to bear in mind that positioning may apply to any of
these levels :
1. Companies
2. Product and service
3. Brands
 Competitive differences will create a strong competitive position: to
create differentiation should meet the following criteria :
1. Important
2. Distinctive and pre-emptive
3. Superior
4. Communicable
5. Affordable
6. Profitable
PRINCIPLES OF MARKET
SEGMENTATION
 Two major features of modern markets are
1. They are capable of being segmented
2. The existence of the vastly superior
technologies of communications,
distribution, and production, which
allow the pursuit of segmentation
strategies
 Underlying requirements for market segmentation :
1. Differ from one another
2. Identified by measureable characteristic
3. Isolated
ALTERNATIVE TARGETING
STRATEGIES
The company can pursue :
 Undifferentiated marketing
 Differentiated marketing
 Concentrated marketing