Lecture 3,Market Segmentation,
Targeting and Positioning
Lecture Objectives
?Segmentation - what/why/how?
?Target market strategies
?Positioning and re-positioning
strategies
2
The advantages of market
segmentation
Opportunities
and threats
Target
market
selection
Market
segmentation
Tailored
marketing
mix
Differentiation
3
c1
c5
c7
c2
c6
c3
c4
c8
The process of market segmentation
and target marketing
c1
c5
c7
c2
c6
c3
c4
c8
c1
c5
c7
c2
c6
c3
c4
c8
The disaggregated market The segmented market The target market
The characteristics of
individual customers
are understood
Customers are
grouped into segments
on the basis of having
similar characteristics
Segment 3 is judged
to be most attractive
and a marketing mix
strategy is designed
for that target market
1 2 3 1 2 3
Marketing
mix
targeted at
segment 3
4
Segmenting consumer markets
Consumer segmentation
Behavioural
Benefits sought
Purchase occasion
Purchase behaviour
Usage
Perceptions and beliefs
Lifestyle
Personality
Demographic
Socio-economic
Geographic
Psychographic Profile
5
Claritas
Lifestyle data
helps to
segment and
target markets.
7
Segmenting organizational
markets
Organizational segmentation
Microsegmentation
Decision-making process
Buy class
Purchasing organization
Organizational innovativeness
Organizational size
Industry
Geographic location
Macrosegmentation
Decision-making unit structure
Choice
9
Target marketing strategies
Undifferentiated marketing
Marketing mix Whole market
Example of Undifferentiated Strategy
Example
Post
Office
?Product
?Price
?Promotion
?Distribution
Everybody
ORGANISATION MARKETING MIX TARGET MARKET
10
11
Target marketing strategies
Differentiated marketing
Marketing mix 1 Segment 1
Segment 2
Segment 3
Marketing mix 2
Marketing mix 3
Utilitarian
Customer
Trendy-
Casual
Price
shopper
Mainstream
Tradition-
alist
LEVI’s
Marketing
Mix 1
Marketing
Mix 2
Marketing
Mix 3
Marketing
Mix 4
Marketing
Mix 5
Example of Differentiated Strategy
12
13
Target marketing strategies
Focused marketing
Segment 1
Segment 2
Segment 3
Marketing mix
Example of Focused Strategy
?Product
?Price
?Promotion
?Distribution
Cement
Manufacturer BuildersMerchants
Independent
DIY
Shops
National
DIY
Chains
ORGANISATION MARKETINGMIX
14
15
Target marketing strategies
Customized marketing
Marketing mix 1 Customer 1
Customer 2
Customer 3
Marketing mix 2
Marketing mix 3
Example of Customized Strategy
Marketing
Mix 1
Marketing
Mix 2
Marketing
Mix 3
Marketing
Mix 4
Nissan
Birdseye
Heinz
Levis
Industrial
Electronic
Systems
Supplier
INDIVIDUAL
MIXESORGANISATION INDIVIDUAL CUSTOMERS
16
17
Key tasks in positioning
1,Market segmentation
2,Target market
3,Differentiated advantage
Positioning
Where and how we compete
18
Keys to successful positioning
Clarity Consistency
Credibility Competitiveness
Successful positioning
19
Magnum
Positioning the
Magnum brand
using the sensual
properties of ice
cream.
21
Repositioning strategies
Image
repositioning
Product
repositioning
Intangible
repositioning
Tangible
repositioning
Same Different
Same
Different
Target
market
Product