1. Chapter 7 Market Segmentation, Targeting, and Positioning for Competitive Advantage

3. Steps in Market Segmentation, Targeting, and Positioning (Fig. 7-1)

4. Step 1. Market Segmentation Levels of Market Segmentation Dividing Markets into Smaller Segments that Can be Reached More Efficiently And Effectively With Products and Services That Match Their Unique Needs. Mass Marketing Same product to all consumers (no segmentation, i.e Coca-Cola at one time) Segment Marketing Different products to one or more segments (some segmentation, i.e. Marriott)

5. Step 1. Market Segmentation Levels of Market Segmentation Niche Marketing Different products to subgroups within segments (more segmentation, i.e. Standard or Luxury SUV’s) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Local Marketing Tailoring brands/promotions to local customer groups, i.e Sears Individual Marketing Tailoring products and programs to the needs of individual customers, i.e. Dell

6. Step 1. Market Segmentation Geographic Segmentation Density or Climate City or Metro Size World Region or Country

8. Step 1. Market Segmentation Psychographic Segmentation Social Class Lifestyle Personality Divides Buyers Into Different Groups Based On:

11. Segmenting Business Markets Operating Characteristics Purchasing Approaches Situational Factors Personal Characteristics Business Marketers Use Many of the Same Consumer Variables, Plus:

12. Segmenting International Markets May Also Use Intermarket Segmentation Factors Used to Segment International Markets Geographic Location Economic Factors Political and Legal Factors Cultural Factors

15. Step 2. Selecting Market Segments Market Coverage Strategies (Fig. 7-3)

16. Step 2. Selecting Market Segments Choosing a Market-Coverage Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies

19. Step 3. Choosing a Positioning Strategy Step 2. Choosing the Right Competitive Advantage Step 3. Communicating and Delivering the Chosen Position Step 1. Identifying Possible Competitive Advantages

21. Identifying Possible Competitive Advantages Services Differentiation i.e. Delivery, Installation, Repair Services, Customer Training Services Product Differentiation i.e. Features, Performance, Style & Design, Attributes People Differentiation i.e. Hiring, Training Better People Than Competitors Do Image Differentiation i.e. Symbols, Characters Channel Differentiation

24. Choosing the Right Competitive Advantages Criteria For Determining Which Differences To Promote Affordable Superior Profitable Preemptive Distinctive Important Communicable Unique Selling Proposition

25. Selecting an Overall Positioning Strategy (Fig. 7-4)