Transcript Slides for Session 3

SEGMENTATION AND
POSITIONING
MARKETING MANAGEMENT
SESSION 3
September 19, 1997
SESSION OUTLINE
 Segmentation:
– Definition
– Steps for segmenting the market
– Criteria of a good segmentation
 Choosing a Target Market
 Positioning
– Definition
– Perceptual maps
– Positioning strategies
DEFINITION OF A SEGMENT
 Group of people
 With similar demand curves
(see Exhibit 3-9, page 97)
 Which exists in the market
 Can be described with appropriate variables
 Differs from other segments
STEPS IN SEGMENTING A
MARKET
 Define generic and product-markets
(See Exhibit 3-13, page 89)
 Select behavioral or attitudinal variables to
identify segments
 Examine segments along qualifying and
determining dimensions (See Exhibit 3-13,
page 102)
 Evaluate segments
CRITERIA OF A GOOD
SEGMENTATION PATTERN
 See Exhibit 3-6, page 94
 See Exhibit 3-7, page 95
THINGS TO REMEMBER
ABOUT SEGMENTATION
 Segments must exist in the marketplace
 More than one segmentation pattern may
exist
 Segments can shift over time
 Targeting one or more segments is more
profitable than targeting the entire market
 Segmentation is at the core of a successful
marketing strategy
TARGETING STRATEGIES
 See Exhibit 3-8, page 96
POSITIONING
 Part of the marketing strategy which allows
to give the product/service its own identity
 Positioning is a competitive tool
 Positioning can be operated at the physical
level or at the perceptual level
 A strong position in buyers’ minds gives the
product a competitive advantage
PERCEPTUAL MAPS
 Indicate where a product stands in buyers’
minds relative to its direct and indirect
competitors
 Horizontal and vertical axes are perceived
relevant dimensions of the product category
 Distances between two brands are perceived
competitive distances
 Ideal tool for positioning strategies
POSITIONING STRATEGIES
 Move brand closer to ideal point
 Move ideal point closer to brand
 Change relevance of dimensions
 Introduce a new brand close to ideal point
FOTTLE, FOLDABLE BOTTLE
NEXT CLASS
 Consumer and Buyer Behavior
 Chapters 6, 7, and 8
 Key concepts:
– major socio-demographic figures in Canada
– model of buyer behavior (Exhibit 7-1)
– classical problem-solving buying process
(Exhibit 7-9)
– organizational buying: buying centres