1. Segmenting, Targeting and Positioning: Building Right Relationships withRight CustomersChapter 7 Group 4

2. Steps in Segmenting, Targeting andPositioning 3. Market SegmentationDividing a market into smallergroups (segments) of buyerswith distinct needs,characteristics or behavior who might require separate products or marketing mixes. 4. Target MarketingEvaluating each marketsegments attractivenessand selecting one ormore of the market segments to enter. 5. Market PositioningSetting the competitivepositioning for theproduct and creating adetailed marketingmix. 6. Market SegmentationSegmenting Consumer Markets 7. Geographic SegmentationDemographic Segmentation Psychographic Segmentation Behavioral Segmentation 8. Geographic Segmentation Dividing the market intodifferent geographical unit such as nations,regions, states, countries,cities or evenneighborhood 9. lSegmentation McDonald in Middle East offers any kind of meal that is chicken or beef 10. lSegmentationMcDonald in New Zealand, offersKiwiBurger. Kiwi is a local basic food toits country. 11. lSegmentationMain idea to serve coke is when it iscold so Coca-cola focuses on hot areasof the world. . 12. Demographic SegmentationDivides the market into groupsbased on variables such as age,gender, family size, family lifecycle, income, occupation, education, religion, race, generation, and nationality. 13. Demographic SegmentationAge & life-cycleSegmentationGenderSegmentationIncomeSegmentation 14. cSegmentation Age & life Cycle SegmentationColgate for Kids & Colgate Total 15. cSegmentationAge & Life CycleSegmentation Baby Bench &Bench 16. cSegmentation Gender Segmentation 17. icoke has small returnable glasses price ranges from P7-12. For middle people, it has non-returnable bottle. For high income peoSegmentation Income Segmentation: 18. PSYCHOGRAPHICSEGMENTATION Dividing the market intodifferent groups based onsocial class, lifestyle orpersonality characteristics. 19. PSYCHOGRAPHIC SEGMENTTIONSocial Class LifestylePersonality 20. SocialClassDifferent consumersfall in differentsocial classes. This depends mainly on their buying power.The buying power isaffected by thebackground of thecustomer, his income as well ashis spending habits. 21. LifestyleEVERYONE HAS DIFFERENTCLOTHING HABITS BASEDON THEIR LIFESTYLES. THECUSTOMER MIGHT BESCHOOL GOING, COLLEGEGOING, OFFICE GOING OROTHER. 22. Personality Personality in psychographicsegmentation is dependent on both lifestyle as well as social class. A personwill have a rich personality only if he hashigh buying power as well as the taste in clothes to maintain such a lifestyle.( 23. BEHAVIORALSEGMENTATIONDividing a market into groupsbased on consumer knowledge, attitude, use or response to aproduct. 24. BEHAVIORALSEGMENTATIONOccasion SegmentationBenefits SoughtUser StatusUsage Rate Loyalty Status 25. OccasionSegmentation Dividing a market into groupsaccording tooccasions wherebuyers get the idea to buy, actuallymake their purchase or use thepurchased item. 26. BenefitSegmentationDividing the market into groups according to the different benefits that the consumers seek from the product.Requires finding the majorbenefits people look for in the product class, the kindsof people who look for eachbenefits and the majorbrands that deliver each benefit 27. User UsageStatus Rate Markets can be Markets can alsosegmented intobe segmented into groups of nonusers,light, medium and ex-users, potentialheavy productusers, first time usersand regular users of ausers product. 28. Loyalty StatusConsumers can be loyal to brands, store andcompanies. 29. Using MultipleSegmentation BasesExample of mulitvariablesegmentation isGeodemographicsSegmentation. 30. Leading lifestyle segmentation systemsis the PRIZM 31. PRIZM:Potential Rating Index for Zip Markets 32. Marketers can use MyBestSegments to guidemarketing campaigns and media strategiesfor specific market segments by answering: Who are the potential customers? What are they like? Where can I find them? How can I reach them? 33. Examples of PRIZMSegmentation Systems: Blue blood estates suburban areas populated by elite, super-rich families. shotguns & pickups - populated by rural blue-collar workers & families. hispanic mix cluster are highly brand conscious, quality conscious and brand loyal. money & brains they buy a lot of books. 34. Segmenting Business MarketsOperating CharacteristicsPurchasing Approaches Situational Factors Personal Characteristics 35. Segmenting InternationalMarkets Geographic Location Economic Factors Political and Legal Factors Cultural Factors 36. Intermarketsegmentation-Forming segments ofconsumers who have similarneeds and buying behavioreven though they are located in different countries. 37. Requirements for EffectiveSegmentation Measurable AccessibleSubstantialDifferentiableActionable 38. TargetMarketing Evaluating MarketSegments 39. Evaluating Market SegmentsSegment Size and GrowthAnalyze current segment sales, growth rates,and expected profitability.Segment Structural AttractivenessConsider effects of: competitors, existence ofsubstitute products, and the power of buyers &suppliers.Company Objectives and ResourcesExamine company skills & resources neededto succeed in that segment.Offer superior value and gain advantages overcompetitors. 40. Selecting Target MarketSegmentsTarget Marketconsists of a set ofbuyers who share commonneeds or characteristicsthat the company decidesto serve. 41. Target Marketing Strategies 42. Undifferentiated (mass) Marketing Firm decides to ignore market segment differences and target the whole market with one offer.Focus is on common (not different) needs of the consumers. 43. Differentiated (segmented)Marketing Firm targets several marketsegments and designs separate offersfor each.The goal is to have higher sales and a stronger position with each market 44. Concentrated (niche)MarketingFirm goes after a large share ofone or a few segments or niches. 45. Micromarketing Practice of tailoring products &marketing programs to the needs and wants of specific individuals and locations. Tailoring brandsLocal Marketing: and promotions to the needs and wants of local customer groupscities, neighborhoods, specific stores.Individual Marketing: Tailoring products and marketing programs to the needs and preferences of individual customers. 46. Choosing a Target MarketingStrategyCompany ResourcesProduct Variability Products Life-Cycle StageMarket Variability Competitors Marketing Strategies 47. Socially Responsible Target MarketingSmart targeting helps both companiesand consumers.Target marketing sometimes generatescontroversy and concern.Vulnerable and disadvantaged can be targeted. Cereal, cigarette, beer, and fast-food marketers have received criticism. Internet has raised fresh concerns about potential targeting abuses. 48. Positioning forCompetitive Advantage 49. Product Position Is the way the product sdefined by consumers onimportant attributes the place the product occupies inconsumers minds relative to competing products. 50. Positioning MapPositioning maps for Largeluxury SUVs 51. Choosing a Positioning Strategy#1 Identify aset of possible #2 Choose the rightcompetitive advantages oncompetitive advantages which to build a position#3 Select an overallpositioning strategy