Session 6

Levels of Segmentation:

Same Product to All Customers

Different Products to one or more Segments

Different Products to Subgroups within Segments

Products To suite Individuals and Locations

Ways of Segmentation•Geographic

•Demographic

•Psychographic

•Behavioral

Ways of Segmentation•Geographic

World to CountriesCountry to RegionsRegion to CitiesClimate

Ways of Segmentation•Demographic

AgeLife-cycle stageFamily SizeGenderIncome

RaceReligionEducationNationality

Ways of Segmentation•Psychographic

Social ClassLife StylePersonality

Ways of Segmentation•Behavioral

OccasionsUsage rateUser statusDecision roles

InitiatorInfluencerDeciderBuyerUser

Effective Segmentation•Measurable

•Accessible

•Substantial

•Differential

•Actionable

Evaluating Market Segment

Current Segment sales, Growth rates, and Expected Profitability

•Segment size and Growth

•Segment Structural Attractiveness

•Company Objectives and Resources

Consider Effect of Competitors, Availability of Substitute Products, and the Power of Suppliers

Company Skills and Resources

Product PositionPositioning For Competitive

advantagePositioning MapsDeveloping Positioning StrategyIdentifying Possible Competitive

advantageChoosing the right Competitive advantageCommunicate the chosen Position

Identifying Possible Competitive advantageProduct Differentiation

Services DifferentiationChannel DifferentiationPeople DifferentiationImage Differentiation

Choosing the right Competitive advantageDeveloping A Positioning Statement

Form: << TO “target segment and need” our “brand” is “concept” that “Point of difference”