Market Segmentation and Product Positioning Chaprter 5

Jao M. BalatbatBSA - II

Market Segmentation and Product PositioningCHAPTER 5

The Marketing Segmentation and Positioning Process

Scan the firms current situation

Determine consumer needs and wants

Determine consumer needs and wants

Develop product positioning

Choose segmentation strategy

Implement segmentation strategy

Undertake periodic evaluation

Nucleus of marketing

planning and decision making

Scan the firm’s current situation

•the firm has to honestly look into its strengths and weaknesses and consider opportunities that can be taken advantage of.

Determine consumer needs and wants

•the needs and wants are significant determinants of successful marketing

Segment the market

•Market segmentation - is the act of subdividing the market into a group or groups of people who have similar needs within the group, but dissimilar needs across the groups. An example would be people wanting cars, but different types of cars. The different types of cars may be luxury, sports, or SUV's.

Three Ways in Which a MarketerCan Segment the Market

•Benefit Segmentation

•Usage Segmentation

•Behavioral/Psychographic Segmentation

•Benefit Segmentation – inherently unique, consumers are similar in their desire to derive benefits from items offered by different companies.

•Usage Segmentation – the subdivision of the market based on how often a consumer uses the product.

•Behavioral/Psychographic Segmentation – the segmentation of users based on various personality and behavioral traits.

Different Categories

•Believers

•Strivers

•Makers

•Strugglers

•Actualizers

•Fulfilleds

•Achievers

•Experiencers

Actualizers

Fulfilleds

Achievers

Experiencers

Believers

Strivers

Makers

Strugglers

Develop product positioning

• is the point in the segmentation process where the marketer creates the product offering in a way that hits the consumers mind and separates the offering from competition.

Choose segmentation strategy

• First the company may decide not to join the market. In that case, no segmentation activity happens.

• Second, the firm may decide not to segment at all but instead to simply mass the market. For example, branded items may not need to segment because of their popularity and product acceptance or if the market is so limited, segmenting may prove to be disadvantage.

• Third, the firm may decide to market to one segment and fourth, it may want to market to more than one segment.

Implement segmentation strategy andUndertake Periodic Evaluation