9-1 chapter segmentation, targeting, and positioning 9
TRANSCRIPT
9-2
L E A R N I N G O B J E C T I V E S
Outline the different methods of segmenting a market.
Describe how firms determine whether a segment is attractive and therefore worth pursuing.
Articulate the difference among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing.
Determine the value proposition.
Define positioning, and describe how firms do it.
Segmentation, Targeting, and Positioning
LO1
LO2
LO3
LO4
LO5
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Segmentation, Targeting, Positioning Process
Step 1 • Strategy or Objectives
Step 2 • Segmentation Methods
Step 3 • Evaluate Segment Attractiveness
Step 4 • Select Target Market
Step 5 • Identify and Develop Positioning Strategy
Segmentation
Targeting
Positioning
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Step 1: Establish Overall Strategy or Objectives
Check YourselfDerived from mission
and current state
©M. Hruby.
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Step 3: Evaluate Segment Attractiveness
SEGMENT ATTRACTIVENESS
Substantial
Reachable
ResponsiveProfitable
Identifiable
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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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Substantial
Too small and it is insignificant
Too big and it might need it’s own store
©Je
rry
Arc
ieri
/Co
rbis
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Reachable
Know the product exists
Understand what it can do
Recognize how to buy
©Digital Vision/PunchStock
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Responsive
React positively to firm’s offering
Move toward the firms products/services
Accept the firm’s value proposition
Customers must:
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Profitable Segments
Segment size = 60 million (<15 yrs)
Segmentation Adoption Percentage = 35%
Purchase Behavior = $500 x 1 time purchase
Profit margin % = 10%
Fixed Cost = $50MIs this segment profitable?
©Comstock/PunchStock
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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
Targeting Strategies
Differentiated
Concentrated
Micromarketingor
one-to-one
Undifferentiated or
mass marketing
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Step 5: Develop Positioning Strategy
• Value• Salient Attributes• Symbol• Competition
Positioning Methods
Photo by Tiffany Rose/WireImage/Getty Images
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Positioning Steps
1. Determine consumers’ perceptions and evaluations in relation to competitors’.
2. Identify the market’s ideal points and size.
3. Identify competitors’ positions.
4. Determine consumer preferences.
5. Select the position.
6. Monitor the positioning strategy.