Segmentation T arget ing Positioning

1. Segmentation Targeting Positioning 7

2. Definition • Market Segmentation: • Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

3. Steps in Market Segmentation, Targeting, and Positioning

4. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Behavioral segmentation Using multiple segmentation variables Market Segmentation Key Topics

5. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographical segmentation Marketing mixes are customized geographically Demographic segmentation Psychographic segmentation Behavioral segmentation Using multiple segmentation variables Market Segmentation Key Topics

6. Market Segmentation Geographic Segmentation Variables City or Metro Size Neighborhood Density Climate World Region or Country Country Region City

7. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographical segments Demographic segmentation Most popular type Demographics are closely related to needs, wants and usage rates Psychographic segmentation Behavioral segmentation Using multiple segmentation variables Market Segmentation Key Topics

8. Age Gender Family size Family life cycle Income Ethnicity Market Segmentation Demographic Segmentation Variables Occupation Education Religion Generation Nationality

9. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Lifestyle, social class, and personality-based segmentation Behavioral segmentation Using multiple segmentation variables Market Segmentation Key Topics

10. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Behavioral segmentation Typically done first Using multiple segmentation variables Market Segmentation Key Topics

11. Occasions Benefits User Status User Rates Market Segmentation Behavioral Segmentation Variables Loyalty Status Readiness Stage Attitude Toward the Product

12. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Demographic segmentation Industry, company size, location Operating variables Technology, usage status, customer capabilities Purchasing approaches Situational factors Urgency, specific application, size of order Personal characteristics Buyer-seller similarity, attitudes toward risk, loyalty Market Segmentation Key Topics

13. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segmentation Location or region Economic factors Population income or level of economic development Political and legal factors Type / stability of government, monetary regulations, amount of bureaucracy, etc. Cultural factors Language, religion, values, attitudes, customs, behavioral patterns Market Segmentation Key Topics

14. Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Measurable Size, purchasing power, and profile of segment Accessible Can be reached and served Substantial Large and profitable enough to serve Differentiable Respond differently Actionable Effective programs can be developed Market Segmentation Key Topics

15. Target Marketing • Evaluating Market Segments • Segment size and growth • Segment structural attractiveness • Level of competition • Substitute products • Power of buyers • Powerful suppliers • Company objectives and resources

16. Target Marketing Strategies

17. MARKETING MIX Segmentationstrategies All buyers in 1 segment Undifferentiated

18. MARKETING MIX 3 MARKETING MIX 1 MARKETING MIX 2 MARKETING MIX 4 Segment 1 Segment 2 Segment 3 Segment 4 Differentiated

19. MARKETING MIX Segment 1 Concentrated/Micromarketing

20. Target Marketing • Choosing a Target-Marketing Strategy Requires Consideration of: • Company resources • The degree of product variability • Product’s life-cycle stage • Market variability • Competitors’ marketing strategies

21. Positioning • Positioning: • The place the product occupies in consumers’ minds relative to competing products. • Typically defined by consumers on the basis of important attributes.

22. Positioning Map

23. Positioning • Choosing a Positioning Strategy: • Identifying possible competitive advantages -- many potential sources of differentiation exist: • Products • Services • Channels • People • Image

24. IDENTIFY COMPETITIVE ADVANTAGES SELECT POSITIONING STRATEGY CHOOSE RIGHT COMPETITIVE ADVANTAGE Choosing a positioning Strategy

25. Competitive advantage

26. SERVICES DISTRIBUTION PEOPLE PRODUCT IMAGE Differentiation based on:

27. Positioning • Choosing a Positioning Strategy: • Choosing the right competitive advantage • How many differences to promote? • Unique selling proposition • Positioning errors to avoid • Which differences to promote?

28. Differenceto promote should be: DISTINCTIVE IMPORTANT SUPERIOR COMMUNICABLE PREEMPTIVE AFFORDABLE PROFITABLE

29. Points-of-difference (PODs) Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands Defining Associations

30. Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability

31. Deliverability Criteria for PODs Feasibility Communicability Sustainability

32. Positioning • Choosing a Positioning Strategy: • Communicating and delivering the chosen position • Entire marketing mix must support the chosen strategy • May require changes to the product, pricing, distribution or promotion.