Transcript Segmentation and Positioning

CHAPTER
nine
Segmentation and
positioning
Principles of Marketing
FIFTH EUROPEAN EDITION
Kotler, Armstrong,
Wong, Saunders
Previewing concepts (1)
• Define the four major steps in designing
a customer-driven marketing strategy:
market segmentation, market targeting,
differentiation, and positioning
• List and discuss the major bases for
segmenting consumer and business markets
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Previewing concepts (2)
• Explain how companies identify
attractive market segments and choose
a market targeting strategy
• Discuss how companies position their
products for maximum competitive advantage
in the marketplace
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Prelude case:
Classic Car Club
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Figure 9.1 Steps in market
segmentation, targeting and positioning
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What is market segmentation?
Market segmentation involves
dividing large, heterogeneous markets
into smaller segments that can be
reached more efficiently and effectively
with products and services that match
their unique needs.
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Segmenting consumer markets
Geographic
Demographic
Psychographic
Behavioral
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Segmenting consumer markets
Marketing Birmingham
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Calvin Klein uses several
layers of segmentation
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What is
geographic segmentation?
Geographic segmentation means
dividing the market into different
geographical units such as nations,
regions, states, counties, cities, or
neighbourhoods.
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Geographic segmentation
• Tesco Metro
• Tesco Express
• One Stop
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What is
demographic segmentation?
Demographic segmentation means
dividing the market into groups based
on variables such as age, gender,
family size, family life cycle, income,
occupation, education, religion, race,
generation and nationality.
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What is
psychographic segmentation?
Psychographic segmentation means
dividing the market into groups based
on social class, lifestyle or personality
characteristics.
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Duck Head targets with
lifestyle segmentation
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What is
behavioural segmentation?
Behavioural segmentation means
dividing the market into groups based
on their knowledge, attitudes, uses or
responses to a product.
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Forms of
behavioural segmentation
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Occasions
User status
Usage rate
Loyalty status
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Geodemographic segmentation
Marketers can use
multiple segmentation
bases to identify
smaller, betterdefined target groups
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Primary segmentation variables
for business markets
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Demographics
Operating variables
Purchasing approaches
Situational factors
Personal characteristics
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What is
intermarket segmentation?
Intermarket segmentation means
forming segments of consumers who
have similar needs and buying
behaviour even though they are from
different countries.
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Requirements for
effective segmentation
Measurable
Accessible
Substantial
Differentiable
Actionable
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What is market targeting?
Market targeting involves evaluating
the various segments identified during
the segmentation process and deciding
how many and which segments it can
serve best.
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Figure 9.2
Target marketing strategies
Undifferentiated
marketing
Differentiated (segmented)
marketing
Concentrated (niche)
marketing
Micromarketing
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Individual marketing
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Factors affecting the choice of
market targeting strategy
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Company resources
Product variability
Product’s life cycle stage
Market variability
Competitor’s marketing strategy
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Differentiation and positioning
Companies must decide on a value
proposition – how it will create
differentiated value for targeted
segments and what positions it wants
to occupy in those segments.
A product’s position is the way the
product is defined by consumers on
important attributes.
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Figure 9.3 Positioning map
of large luxury SUVs
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Steps in choosing a differentiation
and positioning strategy
• Identify possible value differences and
competitive advantages
• Choose the right competitive advantages
• Select an overall positioning strategy
• Develop a positioning statement
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Sources of differentiation
Product
Services
Channels
People
Image
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Criteria for choosing
which differences to promote
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Important
Distinctive
Superior
Communicable
Pre-emptive
Affordable
Profitable
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Figure 9.4
Possible value propositions
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What is a positioning statement?
A positioning statement is a
statement that summarises company or
brand positioning.
It takes this form: To (target segment
ad need) our (brand) is (concept) that
(point of difference).
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Mountain Dew’s
positioning statement
To young, active softdrink consumers who
have little time to sleep,
Mountain Dew is the soft
drink that gives you more
energy than any other
brand because it has the
highest level of caffeine.
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Discussing the concepts (1)
• What are the benefits of mass marketing
versus market segmentation for a
business?
• Is the EU an attractive and distinctive geographic
market segment? Can businesses market in the
same way to different consumers in member
states?
• How can financial service providers segment their
markets and implement targeting strategies?
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Discussing the concepts (2)
• What examples of famous personalities
used for advertising products can you
think of and what value does the
personality bring to the brand?
• How can segmentation help with the adoption of
environmentally friendly ideas like black bins and
chipping bins?
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