Market Segmentation and Positioning - univie.ac.at · • Introduction to segmentation • Segmentation of consumer markets ... • Target marketing – Evaluation ... behaviour Usage

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Market Segmentation and Positioning

Presentation Group # 6 :

George-Edouard Duriez

Morten Henriksen

Emma Sjöblom

Kristin Svenhed

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Table of content

• Introduction to segmentation

• Segmentation of consumer markets

• Segmentation of organization markets

• Target marketing– Evaluation– Strategies

• Positioning– Efficient positioning– Position of a brand in a market– Repositioning

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Part #1 : Segmentation

Definition:

“The identification of individuals or organizations with similar characteristics that

have significant implications for the determination of marketing strategy”

Divide market into submarkets and develop a market mix for the different ones

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Why Segmentation ?

OpportunitiesAnd

threats

Differentiation

Tailored Marketing

mix

Target market selection

Marketsegmentation

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The process of market segmentation

Three steps :

• Understand the needs of different customer segments

• Group customers according to their needs in order to use appropriate marketing mix

• Choose target market ; most profitable market is preferred

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Segmenting consumer marketsConsumer segmentation

Behavioural

Psychographic

Profile

BenefitSought

Purchaseoccasion

Purchasebehaviour

UsagePerceptionsand beliefs

Lifestyle Personality

Demographic Socio-economicGeographic

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Behavioural segmentation

• Benefits sought– Different product benefits

• Purchase occasion– Gift example

• Purchase behaviour– Innovator segment

• Usage– Heavy, light, non-users

• Perceptions, beliefs and values– Similarities

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Segmenting consumer marketsConsumer segmentation

Behavioural

Psychographic

Profile

BenefitSought

Purchaseoccasion

Purchasebehaviour

UsagePerceptionsand beliefs

Lifestyle Personality

Demographic Socio-economicGeographic

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Psychographic segmentation

• Lifestyle– Activities, interest and

opportunities

• Personality– Marlboro example

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Segmenting consumer marketsConsumer segmentation

Behavioural

Psychographic

Profile

BenefitSought

Purchaseoccasion

Purchasebehaviour

UsagePerceptionsand beliefs

Lifestyle Personality

Demographic Socio-economicGeographic

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Profile segmentation

• Demographic

• Socio-economic

• Geographic

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Part #2 : Segmenting Organizational Markets

Definition:

“Business to business marketer profiles organizations and organizational buyers”

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Method of org. segmentation

Organizationalmarket

Macro -segmentation

Micro –segmentation

Characteristics of the decision making within each macrosegment

Characteristics of the buying organization

Business to business

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Macrosegmentation

Three Macrosegments:

• Organizational size– Small, medium large

• Industry– Unique requirements

• Geographic location– East vs. western

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Microsegmentation

Microsementation

Choice criteria

Decision makingUnit structure

Decision-making process

Buy classPurchasing

Organization Organizationalinnovativeness

Straight rebuyModified rebuyNew task

InnovatorFollowerLaggard

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Part #3 : Target marketing

Definition:

“Target marketing is a choice of specific segments to serve and is a key element of

marketing strategy”

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Evaluation of the segmentation

• Market factorsSize

Growth rate

Profitability

Sensitivity

Bargaining power

Barriers to entry and exit

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• Competitive factorsNature of competition

New entrants

Competitive differentiation

• Political, social and environmental factors

• CapabilityExploitable marketing assets

Cost advantages

Technological edge

Managerial capabilities and commitments

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Target marketing strategies

Marketing Mix Whole Market

Marketing Mix

Marketing Mix 1

Marketing Mix 2

Marketing Mix 3

Customer 1

Customer 2

Customer3

Marketing Mix 1

Marketing Mix 2

Marketing Mix 3

Segment 1

Segment 2

Segment 3

• Undifferentiated Marketing

• Differentiated Marketing

• Customized Marketing

• Focused Marketing

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Part #4 : Positioning

The Aim :“To create and maintain a distinctive place in

a market for a firm or a brand”

It answers two main questions :

Where we want to compete ?Target market

How we want to compete ?Differential advantage

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The four criteria of an efficient positioning :

• Clarity

• Consistency

• Credibility

• Competitiveness

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Tools to determine the position of a brand in a market

• Perceptual mapping

4 steps :1. Identify the competing brands

2. Identify important attributes used by consumers to choose

3. Conduct marketing research to know how the brands are scored on the different attributes

4. Plot brands on a two-dimensional map

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• Perceptual mapping :

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• Spidergram positioning map

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Repositioning

• Image repositioning

• Product repositioning

• Intangible repositioning

• Tangible repositioning

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The End !

Any questions ?

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List of reference

• Jobber, D. (2007) Principles and Practice of Marketing, 5th edition. McGraw-Hill Education (UK)