Download What is Segmentation

Module – 5
Segmentation, Targeting
&
Positioning
Resource
Person
MATHISHA HEWAVITHARANA
MBA (Col),BBA Sp.Mktng (Col), PPG DIP.
In Mktng (UK), MCIM (UK), Chartered
Marketer (UK), Practicing Marketer (SL),
ACMA, CGMA CIMA (UK), DBF (IBSL),
AIB (IBSL), MSLIM(SL),
Head of Marketing - Siyapatha Finance
PLC
Chapter Contents

Segmentation & Segmentation Variables

Targeting Strategy

Positioning Strategy
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
1-3
Chapter Contents

Segmentation & Segmentation Variables

Targeting Strategy

Positioning Strategy
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
1-4
What is Segmentation ?
A market segment consists of a group of customers who
share a similar set of needs and wants. Segmentation is….
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the United States edition of Marketing Management, 14e.
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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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the United States edition of Marketing Management, 14e.
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Segmentation variables in Consumer
Markets
o Geographic Segmentation
Geographic segmentation divides the market into
geographical units such as nations, states, regions,
counties, cities, or neighbourhoods.
Refer : Page 190 - 191 ( Marketing Management 14th edition)
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the United States edition of Marketing Management, 14e.
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Segmentation variables in Consumer
Markets
o Demographic Segmentation
Demographic segmentation divides the market based on a
number of demographical factors.
Refer : Page 192 - 196 ( Marketing Management 14th edition)
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the United States edition of Marketing Management, 14e.
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Demographic Segmentation

Age and life cycle

Life stage

Gender

Income

Generation

Social class

Race and Culture
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Segmentation variables in Consumer
Markets
o Psychographic Segmentation
Psychographic segmentation divides the market based on
psychological factors such as Personality, Lifestyle or
Values & people with in the same demographic group can
exhibit different psychographic profiles.
Refer : Page 197 - 198 ( Marketing Management 14th edition)
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the United States edition of Marketing Management, 14e.
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Segmentation variables in Consumer
Markets
o Behavioral Segmentation
In behavioral segmentation, marketers divide buyers into
groups on the basis of their knowledge of, attitude toward,
use of, or response to a product. Following three aspects
are used in assessing behavioral segmentation.
Needs
and Benefits
Decision
User
Roles – Initiator / Influencer / Decider / Buyer / User
and Usage – Occasions / user status / User rate / User readiness
Refer : Page 199 - 200 ( Marketing Management 14th edition)
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Loyalty Status

Hard-core loyals

Split loyals

Shifting loyals

Switchers
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Behavioral Segmentation Breakdown
Refer : Page 201( Marketing Management 14th edition)
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Segmenting for Business Markets

Demographic (Industry / Company size / Location)

Operating variable (Technology / Capacity)

Purchasing approaches (Purchasing Policies / Criteria)

Situational factors (Urgency / Size of order)

Personal characteristics (Risk Appetite / Loyalty)
Refer : Page 202 ( Marketing Management 14th edition)
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Steps in Segmentation Process

Need-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

Market mix strategy
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Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable
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the United States edition of Marketing Management, 14e.
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Chapter Contents

Segmentation & Segmentation Variables

Targeting Strategy

Positioning Strategy
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the United States edition of Marketing Management, 14e.
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What is Targeting ?
Targeting is ……
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Targeting
Targeting includes following;
 Ranking the market segments according to the market
potential
 Selecting the target segments accordingly
Targeting decision will be basically taken after considering the
following two dimensions.
 Market attractiveness – profitability, market growth rate, entry
costs, economies of scale, price competition etc.
 Business strength – relative market share, company image,
learning curve effect, product quality, R&D, financial strength,
patent
rights etc.
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Targeting Strategies

Undifferentiated Targeting
(One product to the Entire market)

Concentrated Targeting
(One product to One segment)

Differentiated Targeting
(Different products to Different segments)
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the United States edition of Marketing Management, 14e.
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Chapter Contents

Segmentation & Segmentation Variables

Targeting Strategy

Positioning Strategy
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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What is Positioning ?
Positioning is ……
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Positioning process
o
Identifying Competitors
o
Analyzing Competitors
o
Defining POP & POD
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Refer : Page 241 - 244 ( Marketing Management 14
the United States edition of Marketing Management, 14e.
edition)
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Defining Associations
Points-of-difference
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
Associations that are
not necessarily unique
to the brand but may
be shared with other
brands
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Re-positioning
Re-positioning is ……
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Positioning Maps
High service quality
Bank A
Bank E
Diverse product
Bank C
Offers
Limited number of
offers
Bank B
Bank D
Poor service quality
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the United States edition of Marketing Management, 14e.
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Chapter Contents

Segmentation & Segmentation Variables

Targeting Strategy

Positioning Strategy
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
1-27
Thank You !
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