Business Skills

MARKETING STRATEGY
Segmentation, Targeting, and
Positioning
 Segmentation

 Process of categorising customers into different groups, or segments, within

which customers with similar characteristics and have similar needs. By
doing this, each one can be targeted and reached with a distinct marketing
mix.
What if No segmentation….
Your products hardly sell.
Mass-production approach

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Lifestyle, preference, behavior etc.
Each of Consumers has different ones.

Green
Minimal
Products! “Cheap” is
Luxury Lifestyle!
Brand!! the best!

European Asian
Design!! Taste! Ethical
Products!

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Segmentation – why? And benefits

Attractiveness for Business Attractiveness for

customers
Increased sales and profits
 Value for money
Capture of market share  Brand/reputation

Loyalty and retention.  Reliability and security

Four Types of Segmentation

1. Geographic

2. Demographic

3. Psychographic

4. Behavioural
Factors for Segmentation:
Several factors are used for segmentation.

 Demographic factors  Behavioral factors

Gender, Ages, Occupation, Income Channel, Frequency,
family size, religion, language, culture etc. Occasion, usage rate etc.

 Geographical factors
Country/Area, Population, Economy,
Weather etc.

 Psychographic factors
Lifestyle, values, Interests,
personalities, attitudes, etc.

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Geographic Segmentation

 Region
Example of how geographic segmentation
 City
might affect marketing activities for an
automobile manufacturer:  Rural or urban

Town could be used to target drivers with

electric cars.

Rural area could be used to target drivers

with four-wheel drive vehicles.
 Demographic Segmentation

Example of how demographic might affect Age

marketing activities: Gender
Occupation
Income could be used to target high Income
earners with luxury goods or low earners Religion
with economy brands.

Age could be used (e.g. finance) to target

“youth” with creative products or
“mature” with investment products.
Psychographic Segmentation

Classify people according to their personalities and lifestyles. Some personality

traits are reflected in lifestyles so are therefore considered as psychographic
variables.
Originally psychographic segmentation represented people’s AIO:
Activities
Interests
Opinions
Behavioural Segmentation

Classify segments by consumption behaviour:

Buying attitudes- enthusiastic, positive, negative, hostile

Patterns of buying practices- when ( every day or occasional purchasing), where

and why purchase

Patterns of product/service uses- light or heavy users, first time or potential users

Patterns of spending money and time- how much, how many

Tr Khin Phone Kyaw Ko Ko 13
Targeting

The process of deciding how many and which segments it can serve best

Targeting Strategy

1. Differentiated

2. Undifferentiated

3. Concentrated
Target Marketing Strategy
Differentiated marketing
Undifferentiated marketing
Concentration/focus/niche marketing
Undifferentiated targeting strategy

 For affordable to everyone

 Everyone can be readily available
 Provide the same product/service, benefits to all customers

Concentrated targeting strategy

 The needs and wants of only one segment

 Focusing all its efforts on that segment
 To satisfy the needs of one group

Differentiated targeting strategy

 Multi -segment targeting

 Can satisfy all different types of customers
What is Positioning?
All you need to do is “Differentiation”.
Major Factors for
Differentiation
1 Product Differentiation 4 Price Differentiation
(More like Functions/Spec) (Lower price, Dynamic pricing etc.)

2 Service Differentiation 5 Image Differentiation

(Customer Service, Delivery, (More like Branding)
expertise, Hospitality etc.)

3 Channel Differentiation
(Coverage, Easy to access etc.)

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