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.
Segmentation, Targeting, Positioning Process
Step 1: Establish Overall Strategy or Objectives Check Yourself Derived from mission and current state
Step 2: Segmentation Methods
Step 3: Evaluate Segment Attractiveness
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
• • Too small and it is insignificant Too big and it might need it’s own store Substantial
©Digital Vision/PunchStock Reachable Know the product exists Understand what it can do Recognize how to buy
React positively to firm’s offering Move toward the firms products/services Accept the firm’s value proposition
Step 4: Selecting a Target Market • Conde Nast has more than 20 niche magazines focused on different aspects of life.
Step 5: Develop Positioning Strategy Positioning Methods •Value •Salient Attributes •Symbol •Competition Photo by Tiffany Rose/WireImage/Getty Images
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.