Download Market Segmentation

Marketing: An Introduction
Market Segmentation, Targeting, and
Positioning for Competitive Advantage
•Chapter Seven
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Marketing: An Introduction
Looking Ahead
• After studying this chapter, you should
be able to:
• Define the three steps of target marketing: market
segmentation, market targeting, and market
positioning
• List and discuss the major levels of market
segmentation and bases for segmenting consumer
and business markets
• Explain how companies identify attractive market
segments and choose a market coverage strategy
• Discuss how companies position their products for
maximum competitive advantage in the marketplace
7-2
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Segmentation, Targeting, and Positioning
Identify bases for
segmenting market
Develop profiles of
resulting segments
Develop measures of
segment attractiveness
Select the
target segment(s)
Develop positioning
for each segment
Develop marketing mix
for each segment
7-3
Market
Segmentation
Market
targeting
Market
positioning
©Copyright 2004, Pearson Education Canada Inc.
Figure 7-1
Marketing: An Introduction
Levels of Market Segmentation
Mass marketing
Segment marketing
Niche marketing
Micromarketing
7-4
©Copyright 2004, Pearson Education Canada Inc.
Figure 7-2
Marketing: An Introduction
Major Segmentation Variables
• Consumer market:
– Geographic
• National, regional, local, city size, density of
population, and climate
– Demographic
• Age, gender, family size/life cycle, income,
occupation, education, religion, and ethnic origin
– Psychographic
• Lifestyle, personality
– Behavioural
• Purchase occasion, benefits sought, user status,
usage rate, loyalty status, readiness state, and
attitude towards product
7-5
©Copyright 2004, Pearson Education Canada Inc.
Table 7-1
Marketing: An Introduction
Effectiveness of Segmentation
•
To be useful, market segments must be:
–
–
–
–
–
•
7-6
Measurable
Accessible
Substantial
Differentiable
Actionable
Segments should be evaluated for:
–
–
–
Size
Growth characteristics
Structural attractiveness
–
Compatibility with company objectives and resources
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Selecting Market Segments
Undifferentiated marketing
Company
Marketing Mix
Market
Differentiated marketing
Company
Marketing Mix 1
Company
Marketing Mix 2
Company
Marketing Mix 3
Segment 1
Segment 2
Segment 3
Concentrated marketing
Company
Marketing Mix
7-7
Segment 1
Segment 2
Segment 3
©Copyright 2004, Pearson Education Canada Inc.
Figure 7-3
Marketing: An Introduction
Choosing a Market Coverage Strategy
•
7-8
Will depend upon:
– Company resources
– Degree of product variability
– Product life cycle stage
– Market viability
– Competitors’ marketing strategies
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Positioning for Competitive Advantage
•
Product position: the way the product is defined by
consumers on important attributes, relative to competing
products
•
Three Important Steps:
–
–
–
7-9
Identifying a set of possibly competitive advantages
upon which to build a position
Choosing the right competitive advantages
Selecting an overall positioning strategy
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Choosing a Positioning Strategy
•
Differences need to be:
–
–
–
–
–
–
–
•
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
Value proposition: the full mix of benefits on which a
product/brand is positioned
7-10
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Possible Value Propositions
Price
More
More
More
for
more
The same
More
for the
same
Less
More
for
less
Benefits
7-11
The same
The same
for
less
Less
Less for
much
less
©Copyright 2004, Pearson Education Canada Inc.
Figure 7-4
Marketing: An Introduction
Looking Back
• Market segmentation,
targeting, and
positioning
• Levels of segmentation
• Bases of segmentation
• Market coverage
strategy
• Positioning products for
competitive advantage
7-12
©Copyright 2004, Pearson Education Canada Inc.