Chapter segmentation, targeting, and positioning nine Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.

chapter

segmentation, targeting, and positioning

nine

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

9-2

LEARNING OBJECTIVES

LO 9-1Outline the different methods of segmenting a market.

LO 9-2Describe how firms determine whether a segment is attractive and therefore worth pursuing.

LO 9-3Articulate the differences among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing.

LO 9-4Determine the value proposition.LO 9-5Define positioning and describe how

firms do it.

9-3

Segmentation, Targeting, Positioning Process

Step 1 • Strategy or Objectives

Step 2 • Segmentation Methods

Step 3 • Evaluate Segment Attractiveness

Step 4 • Select Target Market

Step 5 • Identify and Develop Positioning Strategy

Segmentation

Targeting

Positioning

9-4

Step 1: Establish Overall Strategy or Objectives

Check YourselfDerived from mission

and current state

©M. Hruby.

9-5

Step 2: Segmentation Methods

Segmentation Method Sample Segments

Geographic Continent: North America, Asia, Europe, AfricaWithin U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast

Demographic Age, gender, income

Psychographic Lifestyle, self-concept, self-values

Benefits Convenience, economy, prestige

Behavioral Occasion, loyalty

9-6

Geographic Segmentation

©ImagineChina

9-7

Demographic Segmentation

Most common segmentation

strategy

U.S. Census Bureau Website

©Stockbyte/Getty Images

9-8

Psychographic Segmentation

Psychographic Self-values

Self-concept Lifestyles

©Benetton Group SPA; Photo by: Oliviero Toscani

9-9

Geodemographic Segmentation

Claritas WebsiteSource: Reprinted with permission of The Nielsen Company.

9-10

Benefit Segmentation

©image100/PunchStock©image100/PunchStock Michael Hevesy/Photodisc/Getty Images

9-11

Behavioral Segmentation

Occasion segmentati

on

Loyalty segmentati

on

Royalty-Free/CORBIS

check yourself

9-12

1.What are the various segmentation methods?

9-13

Step 3: Evaluate Segment Attractiveness

SEGMENT ATTRACTIVENESS

Substantial

Reachable

ResponsiveProfitable

Identifiable

9-14

Identifiable

• Who is in their market?• Are the segments unique?• Does each segment require a unique marketing

mix?

Liquidlibrary/Dynamic Graphics/Jupiterimages

Liquidlibrary/Dynamic Graphics/Jupiterimages

Comstock Images/JupiterImages

9-15

Substantial

• Too small and it is insignificant

• Too big and it might need it’s own store

©Je

rry A

rcie

ri/C

orb

is

9-16

Reachable

Know the product exists

Understand what it can do

Recognize how to buy

©Digital Vision/PunchStock

9-17

Responsive

React positively to firm’s offering

Move toward the firms

products/services

Accept the firm’s value proposition

Customers must:

9-18

Profitable

Homeowners

Businesses

Segment size 75,000 1,000

Segment adoption percentage

1% 20%

Purchase behaviorPurchase priceFrequency of

purchase

$100 12 times

$50020 times

Profit margin percentage

60% 80%

Fixed costs $400,000 $1,000,000

Segment profit $140,000 $600,000

9-19

Step 4: Selecting a Target Market

• Conde Nast has more than 20 niche magazines focused on different aspects of life.

©M Hruby

9-20

Segmentation Strategy

Targeting Strategies

Differentiated

ConcentratedMicromarketing

orone-to-one

Undifferentiated or

mass marketing

9-21

Step 5: Develop Positioning Strategy

Positioning Methods

• Value• Salient Attributes• Symbol• Competition Photo by Tiffany Rose/WireImage/Getty

Images

9-22

Positioning Steps

9-23

Perceptual Maps

check yourself

9-24

1.What is a perceptual map?

2.Identify the six positioning steps.