segmentation, targeting, positioning

Objectives

• Market segmentation strategies

• Variables used to segment markets
• Steps involved in segmenting and targeting
• Positioning in the marketplace
• Market/product grid as a positioning tool
Segmentation Strategies
• Market segmentation defined:
◦ The organization of consumers into groups based on
what those in each group have in common.
• Segmentation strategies:

Undifferentiated:
Mass market

Multi-segment:
Two or more products for two
or more segments

Concentrated:
Niche
Consumer segmentation variables
Psychographi
Demographic Behavioural Geographic
c
• age • attitude • innate need • country
• gender • value • action • urban/rural
• ethnicity • lifestyle • usage • population
• income • beliefs • loyalty density
• climate

Organizational segmentation variables

Industry Company Geographic Economics
• raw materials • sales volume • proximity to • supply and
• manufacturin • clientele shipping demand
g • culture • logistics
• resellers • product type • supply chain
• services
Steps in Segmentation & Targeting

Select a market Choose Choose

or product for variables to descriptors
analysis analyze within variables

Analyze Select target Implement plan

segment market to reach
Positioning Products
• Position:
◦ A place a product, brand or company occupies in the
mind of the target customer – relative to competitive
offerings
• Positioning:
◦ Attempt by company to influence perception of how it is
seen by target market
• Differentiation:
◦ Distinguishing a product or firm from competitors
usually on one or more bases/attributes
• Attributes:
◦ Characteristics given to product or firm
 Positioning (Perceptual) Map
- choose variable categories meaningful to target market
- examples: high price/low price; expressive/conservative

Variable A (High)

Variable B (Low) Variable B (High)

Variable A (Low)
Positioning Products
• Perceptual Map:
◦ Placement of competing firms or products on a matrix,
defined by attributes important to consumer
Market/Product Grid
• A planning and organizing tool used by firms to
assign products to markets

Trucks Mini Vans Hybrids

Male/25-45 Primary

Parents Primary

Gen Y/Millenials Primary

 Situation Analysis Application
• Analyze the segmentation characteristics of the
market targeted for the company’s product.
• Provide a full analysis of its demographic,
psychographic, geographic and the behavioral
characteristics.
• Using a positioning map, demonstrate the
company/product’s position relative to competitors.