3. LEARNING OBJECTIVES Explain the criteria for effective segmentation Identify the various approaches to market segmentation Describe the steps in target marketing Understand the continuum of approaches to target marketing strategy Define positioning and link it to the use of the marketing mix Use and interpret perceptual maps Identify sources of differentiation Avoid potential positioning errors 9-3
5. Market Segmentation, Target Marketing, and Positioning EXHIBIT 9.1 Market Segmentation Dividing a market into meaningful smaller markets or submarkets based on common characteristics. Target Marketing Evaluating the market segments, then making decisions about which among them is most worthy of investment for development. Positioning Communicating one or more sources of value to customers in ways that connect needs and wants to what the product has to offer. Positioning strategies are executed through the development of unique combinations of the marketing mix variables. 9-5
6. WHAT IS SEGMENTATION? Segmentation seeks to find one or more factors about members of a heterogeneous market that allow for dividing of the market into smaller, more homogeneous subgroups The purpose would be to develop different marketing strategies to best meet the segments’ distinct needs and wants. 9-6
7. Criteria for Effective Segmentation Is the segment of sufficient size? Is the segment readily identifiable and can it be measured? Is the segment clearly differentiated on one or more important dimensions? Can the segment be reached in order to deliver the value of the product? 9-7
11. VALS™ Framework EXHIBIT 9.11 Reprinted with permission from VALSTM Program, SRI Consulting Business Intelligence (SRIC-BI); www.sric-bi.com/VALS. 9-11
13. SEGMENTING CONSUMER MARKETS Firms use Multiple Segmentation Approaches Simultaneously Firms develop a profile of a segment that might include aspects of any or all of the segmentation approaches we have learned. 9-13
24. POSITIONING The firm must turn its attention to creating, communicating, and delivering the value offering to the target markets. Positioning the product so that consumers understand its ability to fulfill their needs and wants. 9-24
