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Lecture Note - 05 Segmentation, Targeting And: Positioning

The document discusses segmentation, targeting, and positioning strategies in marketing. It explains that market fragmentation has led companies to use target marketing strategies that involve segmenting the market into groups, selecting target segments, and developing products for those segments. The key steps are segmentation, targeting, and positioning. Segmentation involves dividing the market into subgroups. Targeting involves selecting target segments. Positioning involves distinguishing a product from competitors in consumers' minds.

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Tasnova Zaman
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47 views28 pages

Lecture Note - 05 Segmentation, Targeting And: Positioning

The document discusses segmentation, targeting, and positioning strategies in marketing. It explains that market fragmentation has led companies to use target marketing strategies that involve segmenting the market into groups, selecting target segments, and developing products for those segments. The key steps are segmentation, targeting, and positioning. Segmentation involves dividing the market into subgroups. Targeting involves selecting target segments. Positioning involves distinguishing a product from competitors in consumers' minds.

Uploaded by

Tasnova Zaman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Lecture Note_05

Segmentation, Targeting and


Positioning
(Chapter 07, Kotler &Amstrong 14th ed.)

MKT 202 - A presentation by Mahafuz Mannan 1


Technological and cultural advances in modern
society have created a case of market
fragmentation.
Market fragmentation is the creation of many
customer groups due to a diversity of distinct
needs and wants in modern society.

MKT 202 - A presentation by Mahafuz Mannan 2


Target Marketing Strategy
Instead of trying to sell something to everyone,
marketers select a target marketing strategy
Target marketing strategy is dividing the total
market into different segments on the basis of
customer characteristics, selecting one or
more segments, and then developing products
to meet the needs of those specific segments

MKT 202 - A presentation by Mahafuz Mannan 3


Target Marketing Strategy
Steps in the target marketing strategy:
1. Segmentation
2. Targeting
3. Positioning

MKT 202 - A presentation by Mahafuz Mannan 4


Segmentation
Segmentation is the process of dividing a larger
market into smaller pieces based on one or
more meaningful, shared characteristics
• Segmenting consumer markets
• Segmenting business markets
• Segmenting international markets

MKT 202 - A presentation by Mahafuz Mannan 5


Segmentation
Segmenting Consumer Markets

Demographi
Geographic
c
segmentatio
segmentatio
n
n

Psychographi
Behavioral
c
segmentatio
segmentatio
n
n

MKT 202 - A presentation by Mahafuz Mannan 6


Segmentation
Segmenting Consumer Markets
Geographic segmentation divides the market
into different geographical units such as
nations, regions, states, counties, or cities
- Many companies today are localizing
products, advertising, promotion, and sales
efforts to fit the needs of individual regions,
cities, and even neighborhoods

MKT 202 - A presentation by Mahafuz Mannan 7


Segmentation
Segmenting Consumer Markets
Demographic segmentation divides the market
into groups based on variables such as age,
gender, family size, family life cycle, income,
occupation, education, religion, race,
generation, and nationality
- Popular bases for segmentation as consumer
needs, wants and usage rates often vary
closely with demographic variables

MKT 202 - A presentation by Mahafuz Mannan 8


Segmentation
Segmenting Consumer Markets

Psychographic segmentation divides buyers into


different groups based on social class, lifestyle,
or personality traits
- People in the same geographic or
demographic segment might have different
life styles, personality traits or may belong to
different social class

MKT 202 - A presentation by Mahafuz Mannan 9


Segmentation
Segmenting Consumer Markets
Behavioral segmentation divides buyers into
groups based on their knowledge, attitudes,
uses, or responses to a product
• Occasions
• Benefits sought
• User status
• Usage rate
• Loyalty status

MKT 202 - A presentation by Mahafuz Mannan 10


Segmentation
Segmenting Consumer Markets
Multiple segmentation is used to identify smaller,
better-defined target groups
Examples:
-PRIZM system by Nielson classifies every American
household into 66 unique segments organized into
14 different social groups
- Geodemography is a segmentation technique
marketers use that combines geography with
demographics to segment regional markets precisely

MKT 202 - A presentation by Mahafuz Mannan 11


Segmentation
Segmenting Business Markets
- May use some of the same variables used in
segmenting consumer market
- May use some additional variables such as
customer operating characteristics, purchasing
approaches, situational factors, and personal
characteristics

MKT 202 - A presentation by Mahafuz Mannan 12


Segmentation
Segmenting International Markets

Geographi Economic
c location factors

Political- Cultural
legal factors factors
MKT 202 - A presentation by Mahafuz Mannan 13
Segmentation
Requirements for effective segmentation

Measurabl
Accessible
e

Substantia Differentia
l ble
MKT 202 - A presentation by Mahafuz Mannan 14
Targeting
Once segmentation is done, marketers choose
one or more segments to target
Some of the things marketers consider while
choosing target segments:
• Segment size and growth
• Segment structural attractiveness
• Company objectives and resources

MKT 202 - A presentation by Mahafuz Mannan 15


Targeting
Different types of targeting strategy include:
• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing
• Customized marketing

MKT 202 - A presentation by Mahafuz Mannan 16


Targeting
Different Types of Targeting Strategy
Undifferentiated marketing targets the whole
market with one offer
– Mass marketing
– Focuses on common needs rather than what’s
different
– Efficient if successful as benefits from economies
of scale

MKT 202 - A presentation by Mahafuz Mannan 17


Targeting
Different Types of Targeting Strategy
Differentiated marketing targets several
different market segments and designs
separate offers for each
• Goal is to achieve higher sales and stronger
position
• More expensive than undifferentiated
marketing

MKT 202 - A presentation by Mahafuz Mannan 18


Targeting
Different Types of Targeting Strategy
Concentrated marketing offers one or more
products to a single segment
• Limited company resources
• Knowledge of the market
• More effective and efficient

MKT 202 - A presentation by Mahafuz Mannan 19


Targeting
Different Types of Targeting Strategy
Customized marketing offer products and
services that exactly meet the unique needs of
each individual or company
- Doctors, lawyers, hairdresser

MKT 202 - A presentation by Mahafuz Mannan 20


Positioning
Positioning is the art and science of fitting the product
or service in one or more segments of the broad
market in such a way as to set it meaningfully apart
from competition—the place the product occupies in
consumers’ minds relative to competing products

Positioning maps show consumer perceptions


of their brands versus competing products on
important buying dimensions

MKT 202 - A presentation by Mahafuz Mannan 21


Positioning Map
Differentiation and Positioning
Differentiation and Positioning
Differentiation and Positioning
Differentiation and Positioning
Differentiation and Positioning
Repositioning
• Altering a product’s or brand’s position due to:
– Declining or stagnant sales
– Anticipated opportunities in other market
positions
• Difficult to accomplish because of entrenched
perceptions and attitudes toward the product
or brand

MKT 202 - A presentation by Mahafuz Mannan 28

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