Copyright © 2012 Pearson Canada Inc.7 - 1 Chapter 7 Segmentation, Targeting and Positioning.

Copyright © 2012 Pearson Canada Inc.7 - 1

Chapter 7

Segmentation, Targeting and Positioning


Getting it right?


Designing a Customer-Driven Marketing Strategy


Finding Market Opportunities

“needs” all customers have

similar needsdissimilar products

mobility

generic markets

similar needssimilar products

product-

market

product-

market

humantransport

bikes | cars | trucks

narrow

market

narrow

market

product-

market

product-

market

increasingly-homogeneous“needs”

job | recreation


product-

market

product-

market


“needs” all customers have

generic markets

narrow

market

narrow

market

transportationriders

exercisers

off-roadadventurers environmentalists

socializers

disaggregating


dependability

stat

usdisaggregatingre-aggregating



Newer Techniques

– data mining• http://www.anderson.ucla.edu/faculty/jason.frand/

teacher/technologies/palace/datamining.htm

– CRM (Customer Relationship Management)• http://www.maximizer.com/

– shopping behaviour analysis• http://www.sbxl.com/


Market Segmentation

– Dividing a market into groups with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

• Key consumer variables:– Geographic– Demographic– Psychographic– Behavioral


Market Segmentation

• Behavioral segmentation• Use multiple segmentation bases to

identify smaller, better-defined target groups– Start with a single base and then expand to

other bases– Multivariable segmentation systems such as

PRIZM NE (New Evolution) are becoming more common


Segmenting International Markets

• Factors used:– Geographic location– Economic factors– Political and legal factors– Cultural factors

• Intermarket segmentation:– Segmenting consumers who have similar

needs and buying behavior even though they are located in different countries


Effective Segmentation

– Measurable

– Accessible

– Substantial

– Differentiable

– Actionable


Market Targeting

• Market targeting involves:– Evaluating marketing segments

• Consider segment size and growth, segment structural attractiveness, and company objectives and resources

– Selecting target market segments• Alternatives range from undifferentiated marketing

to micromarketing

– Being socially responsible


Selecting Target Market Segments

• Targeting strategies include:– Undifferentiated (mass) marketing– Differentiated (segmented) marketing– Concentrated (niche) marketing– Micromarketing (local or individual marketing)


Choosing a Targeting Strategy

• Factors to consider:– Company resources– Product variability– Product’s life-cycle stage– Market variability– Competitors’ marketing strategies


Ethical Issues in Targeting

exploitation

“desires”– needs– wants– cravings

harm– emotional– financial– other?


Differentiation and Positioning

• Product’s position:– Important attributes defined by consumers– The place the product occupies in consumers’

minds relative to competing products

“Product are created in a factory, but brands are created in the mind”


PositioningHigh moisturizing

low moisturizing

nondeodorant deodorant

ZestOlay

Safeguard

DialLifebuoy

Jergens

Dove

LuxCoast

Ivory

2

1

4

5

7

38

6



• Competitive advantage:– gained by offering greater customer value,

either through lower prices or by providing more benefits that justify higher prices



• Identifying possible value differences and competitive advantages:– Key to winning - understand their needs better

than competitors do and to deliver more value– Examine the entire customer experience



• Types of differentiation:– Product: Features, performance, style, design– Services: Speedy, convenient or careful

delivery– Channels: Coverage, expertise, performance– People: Training staff better than the

competitors– Image: Convey distinctive benefits and

positioning



• Worthwhile differences to promote:– Important– Distinctive– Superior– Communicable– Preemptive– Affordable– Profitable





• Developing a positioning statement:– Format: “To (target segment and need)

our (brand) is (a concept) that (point of difference).”

– Example: “To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go.”


Communicating and Delivering the Position

• All marketing-mix efforts must support the positioning strategy

• Companies must monitor and adapt the position over time– Required to match changes in consumer

needs and competitors’ strategies

Copyright © 2012 Pearson Canada Inc.7 - 1 Chapter 7 Segmentation, Targeting and Positioning.

Documents

pearson canada

positioning slide

common slide

responsible slide

mind slide

individual marketing

marketing segments

positioning statement