bmgt 205 chapter_9

BMGT 205: Principles of Marketing

Segmentation, Targeting, and Positioning

Review Segment Examples and Discuss

Learning Objectives

Segmentation, Targeting, Positioning Process

Step 1 ••Strategy or Objectives

Step 2 ••Segmentation Methods

Step 3 ••Evaluate Segment Attractiveness

Step 4 ••Select Target Market

Step 5 ••Identify and Develop Positioning Strategy

Segmentation

Targeting

Positioning

Step 1: Establish Overall Strategy or Objectives

SWOT Analysis Derived from mission and current state

http://youtu.be/YDCY56azew8

Step 2: Segmentation Methods

CHECK YOURSELF

1. What are the various segmentation methods?

Step 3: Evaluate Segment AttractivenessSEGMENT ATTRACTIVENESS

Substantial Reachable Responsive Profitable Identifiable

Identifiable

• Who is in their market?

• Are the segments unique?

• Does each segment require a unique marketing mix?

Substantial

• Too small and it is insignificant

• Too big and it might need it’s own store

Reachable

Know the product exists

Understand what it can do

Recognize how to buy

Responsive

React positively to firm’s offering

Move toward the firms products/services

Accept the firm’s value proposition

Customers must:

Profitable

Step 4: Selecting a Target Market

Target Segment

Segmentation StrategyTargeting Strategies

Differentiated ConcentratedMicromarketing

orone-to-one

Undifferentiated ormass marketing

Step 5: Develop Positioning Strategy

Positioning Methods • Value • Salient Attributes • Symbol • Competition

Positioning Steps

1. Determine consumers’

perceptions and evaluations in

relation to competitors’.

2. Identify the market’s ideal

points and size.

3. Identify competitors’

positions.

4. Determine consumer

preferences.

5. Select the position.

6. Monitor the positioning strategy.

Positioning Maps Example

CHECK YOURSELF

1. What is a perceptual map? 2. Identify the six positioning steps.

Key Terms

• Benefit segmentation groups consumers on the basis of the benefits they derive from products or services.

• Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, and education.

• Geodemographic segmentation uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers.

• Geographic segmentation organizes customers into groups on the basis of where they live.

Key Terms

• Behavioral segmentation divides customers into groups based on how they use the product or service.

• Psychographic segmentation, or psychographics, allows people to describe themselves using characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine these choices.

• The Value and Lifestyle Survey (VALS) is a psychographic tool that classifies consumers into eight categories based on their answers to a questionnaire.