This document outlines the steps of segmentation, targeting, and positioning in marketing. It discusses:
1) Segmentation involves establishing objectives, using methods like geographic, demographic, psychographic, benefit, and behavioral segmentation to divide the market.
2) Targeting evaluates segment attractiveness and selects a target market using approaches like undifferentiated, differentiated, concentrated, or micromarketing.
3) Positioning identifies a strategy communicating the product or service's value proposition, attributes, symbols, and competitive differences.
2. Segmentation, Targeting, and Positioning
Step Process
Establish Strategy or objectives Segmentation
Use segmentation methods Segmentation
Evaluate segment attractiveness Targeting
Select target market Targeting
Identify and develop positioning strategy Positioning
3. Segmentation
Step 1: Establish the Overall Strategy or Objectives
◦ The goals of the marketing strategy must be clearly defined
◦ This strategy must not conflict with the organization’s mission
◦ The SWOT method will assess the current status of the organization
5. Geographic Segmentation
◦ Based on where people live
◦ Could be separated by country, state, region, city, etc.
◦ Assumes that certain products are more likely to be used by people in a certain location
6. Demographic Segmentation
◦ Includes objective categories such as age, race, gender
◦ Works for products or services used more by one categories than another, less useful for products that are universally used
7. Psychographic Segmentation
◦ Groups reflect how consumers see themselves
◦ Three types of psychographic segmentation
◦ Self-values
◦ Goals the consumer has for their life
◦ Self-concept
◦ How people want to see themselves
◦ Lifestyle
◦ The things consumers actually spend their time doing
◦ Measured and evaluated using Strategic Business Insights’ Values and Lifestyles Survey
8. Benefit Segmentation
◦ Consumers are grouped based on what they will get out of the product or service
◦ Matches consumers with the products and services that meet their needs
◦ An easy marketing method involves portraying the benefits to consumers
9. Behavioral Segmentation
◦ Consumers are grouped based on how they will use the product or service
◦ Occasion segmentation takes into account when a consumer will use the product
◦ Loyalty segmentation focuses on retaining loyal customers
10. Targeting
Step 3: Evaluate segment attractiveness
◦ Each segment must be judged by 5 characteristics
◦ Identifiable – can identify who is in the segment, with clear distinctions between segments
◦ Substantial – large enough to generate profit, worthy of the effort of the marketing mix
◦ Reachable – can be reached by marketing efforts
◦ Responsive – receptive to planned marketing approach
◦ Profitable – expected to create profit
11. Targeting
Step 4: Select target market
◦ Undifferentiated marketing, also known as mass marketing – used for products and services that appeal to most consumers
equally
◦ Differentiated marketing – uses different marketing strategies for different groups of consumers
◦ Concentrated marketing – focuses on providing for one target market
◦ Micromarketing – customizes products or services for a specific customer
12. Positioning
Step 5: Identify and develop positioning strategy
◦ Value proposition – providing the highest quality for the price
◦ Salient attributes – communicating features that are important to the consumer
◦ Symbols – recognizable logos and trademarks
◦ Competition – highlighting differences that set the product apart from its competitors
◦ May use Perceptual Mapping to gauge the product in consumer’s minds
