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Market Segmentation and Targeting Guide

1. Market segmentation involves dividing a market into distinct groups based on characteristics like needs, behaviors, or demographics that may require separate products or marketing strategies. 2. Target marketing is selecting specific market segments to enter by evaluating each segment's attractiveness. Market positioning is creating a clear, distinctive place for a product relative to competitors in customers' minds. 3. Major variables used to segment consumer markets include geographic, demographic, psychographic, and behavioral factors. Segmenting business markets also considers operating characteristics, purchasing approaches, and situational/personal factors.

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10 views12 pages

Market Segmentation and Targeting Guide

1. Market segmentation involves dividing a market into distinct groups based on characteristics like needs, behaviors, or demographics that may require separate products or marketing strategies. 2. Target marketing is selecting specific market segments to enter by evaluating each segment's attractiveness. Market positioning is creating a clear, distinctive place for a product relative to competitors in customers' minds. 3. Major variables used to segment consumer markets include geographic, demographic, psychographic, and behavioral factors. Segmenting business markets also considers operating characteristics, purchasing approaches, and situational/personal factors.

Uploaded by

abhiramisc
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd

Segmentation, Targeting &

Positioning: Building the Right


Relationships with The Right
Customers
Market Segmentation
Dividing a market into smaller
groups of buyers distinct needs,
characteristics, or behavior who
might require separate products or
marketing mixes
Target Marketing & Positioning
Target Marketing
– The process of evaluating each market
segment’s attractiveness and selecting
one or more segments to enter
Market Positioning
– Arranging for a product to occupy a
clear, distinctive, and desirable place
relative to competing products in the
minds of target customers
Steps in Market STP

Market Target Marketing Market


Segmentation Positioning
Identify Bases for Develop measure Identify Bases for
Segmenting the of segment Segmenting the
market attractiveness market

Develop segment Select target Develop segment


Profiles segments Profiles
Major Segmentation Variables for
Consumer Markets
Geographic:
– World region or country
– Country region
– City or metro size
– Density
– Climate
Major Segmentation Variables for
Consumer Markets…(cont’d)
Demographic:
– Age
– Gender
– Family size
– Family life cycle
– Income
– Occupation
– Education
– Religion
– Race
– Generation
– Nationality
Major Segmentation Variables for
Consumer Markets…(cont’d)
Psychographic
– Social class
– Lifestyle Multiple
– Personality segmentation
Basis:
Behavioral • Combination of
– Occasions variables
– Benefits
•Re-segmenting
– User status
to narrower sub-
– Loyalty status
segment
– Readiness stage
– Attitude towards products
Segmenting Business Markets
Consumer and business markets use
many of same variables to segment
their markets: G-D-P-B
Additional variables:
– Operating characteristics
– Purchasing approaches
– Situational factors
– Personal characteristics
Requirements for Effective
Segmentation
Measurable:
– Size, purchasing power and profiles
Accessible:
– Can effectively meet and served
Substantial:
– Large and profitable enough
Differentiable:
– Response differently to different marketing mix
Actionable:
– Effective programs can be design for attracting
and serving the segments
Target Marketing
Target market:
– A set of buyers sharing common needs or characteristics
that the company decides to serve

Target marketing Strategies

Undifferenti Differentiat Concentrate Micro


ated (mass) ed d (niche) marketing
marketing (segmented) marketing (local or
marketing individual)
Positioning for Competitive
Advantage
The company must decide what
position it wants to occupy

Marketers wants to develop unique


market position for their products
(POP & POD)
– Positioning Map
Developing Positioning Statement
Positioning statement:
– A statement that summarizes company
or brand positioning
Volvo: the safest, most durable wagon your family
can drive
Visa : It’s Everywhere You Want to Be
Axe : The axe effect
– Format: To (target segment and need) our
(brand) is (concept) that (point of difference)
– Take strong steps to deliver and communicate
the desired position to the target market
(marketing mix)

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