chapter

eight

segmentation, targeting, and positioning

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Segmentation, Targeting, and Positioning

L E A R N I N G O B J E C T I V E S

LO1 Identify the five steps in the segmentation, targeting and positioning process. LO2 Outline the different methods of segmenting a market.

LO3 Describe how firms determine whether a segment is attractive and therefore worth pursuing.

LO4 Articulate the difference among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing.

LO5 Define positioning, and describe how firms do it.

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Segmentation, Targeting, Positioning Process

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Step 1: Establish Overall Strategy or Objectives Check Yourself Derived from mission and current state

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Step 2: Segmentation Methods

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Step 3: Evaluate Segment Attractiveness

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Identifiable • • • Who is in their market?

Are the segments unique?

Does each segment require a unique marketing mix?

Liquidlibrary/Dynamic Graphics/Jupiterimages Liquidlibrary/Dynamic Graphics/Jupiterimages Comstock Images/JupiterImages

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• • Too small and it is insignificant Too big and it might need it’s own store Substantial

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©Digital Vision/PunchStock Reachable Know the product exists Understand what it can do Recognize how to buy

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Responsive

Customers must:

React positively to firm’s offering Move toward the firms products/services Accept the firm’s value proposition

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Profitable

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Step 4: Selecting a Target Market • Conde Nast has more than 20 niche magazines focused on different aspects of life.

©M Hruby

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Segmentation Strategy

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Step 5: Develop Positioning Strategy Positioning Methods •Value •Salient Attributes •Symbol •Competition Photo by Tiffany Rose/WireImage/Getty Images

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Perceptual Maps

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Positioning Steps 1. Determine consumers’ perceptions and evaluations in relation to competitors’.

2. Identify competitors’ positions 3. Determine consumer preferences.

4. Select the position.

5. Monitor the positioning strategy.

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