Segmentation, Targeting, and PositioningObjectivesSlide 3Slide 3DefinitionSlide 5Market SegmentationSlide 8Slide 8Slide 10Slide 11Slide 11Slide 13Slide 13Slide 15Slide 16Slide 16Slide 17Slide 19Slide 19Slide 21Slide 22Slide 23Target MarketingSlide 24Slide 26Slide 27PositioningSlide 29Slide 29Slide 31Slide 32Slide 32Slide 33Slide 35Slide 36BusinessNowSegmentation, Segmentation, Targeting, and Targeting, and PositioningPositioningChapter 8Chapter 88- 2ObjectivesBe able to define the three steps Be able to define the three steps of target marketing: market of target marketing: market segmentation, target marketing, segmentation, target marketing, and market positioning.and market positioning.Understand the major bases for Understand the major bases for segmenting consumer and segmenting consumer and business markets.business markets.8- 3ObjectivesKnow how companies identify Know how companies identify attractive market segments attractive market segments and how they choose a target and how they choose a target marketing strategy.marketing strategy.Comprehend how companies Comprehend how companies position their products for position their products for maximum competitive maximum competitive advantage.advantage.8- 4Sells multiple brands Sells multiple brands within the same within the same product category for product category for a variety of productsa variety of productsBrands feature a Brands feature a different mix of different mix of benefits and appeal to benefits and appeal to different segmentsdifferent segments Has also identified Has also identified different niches different niches withinwithin certain segments certain segments Tide offers seven Tide offers seven different product different product formulations to serve formulations to serve different niches’ different niches’ needsneedscProcter & GambleProcter & Gamble8- 5DefinitionMarket Segmentation:Market Segmentation:Dividing a market into distinct Dividing a market into distinct groups with distinct needs, groups with distinct needs, characteristics, characteristics, or behavior who or behavior who might require might require separate products separate products or marketing or marketing mixes.mixes.8- 6Figure 8-1: Steps in Market Segmentation, Targeting, and Positioning8- 7Market SegmentationSegmenting Segmenting Consumer MarketsConsumer MarketsSegmenting Segmenting Business MarketsBusiness MarketsSegmenting Segmenting International MarketsInternational MarketsRequirements for Requirements for Effective SegmentationEffective SegmentationGeographical Geographical segmentationsegmentationMarketing mixes are Marketing mixes are customized geographicallycustomized geographicallyDemographic Demographic segmentationsegmentationPsychographic Psychographic segmentationsegmentationBehavioral segmentationBehavioral segmentationUsing multiple Using multiple segmentation variablessegmentation variablesKey TopicsKey Topics8- 8Market SegmentationGeographic Geographic Segmentation VariablesSegmentation VariablesCity or City or Metro SizeMetro SizeNeighborhoodNeighborhoodDensityDensityClimateClimateWorld Region World Region or Countryor CountryU.S. RegionU.S. RegionStateStateCityCity8- 9Geographical climate is Geographical climate is a legitimate means of a legitimate means of segmentation for many segmentation for many products or services.products or services.Name several examples of Name several examples of products for which need products for which need (and demand) would vary (and demand) would vary on a geographical basis. on a geographical basis. Discussion Question8- 10Market SegmentationSegmenting Segmenting Consumer MarketsConsumer MarketsSegmenting Segmenting Business MarketsBusiness MarketsSegmenting Segmenting International MarketsInternational MarketsRequirements for Requirements for Effective SegmentationEffective SegmentationGeographical segmentsGeographical segmentsDemographic segmentationDemographic segmentationMost popular typeMost popular typeDemographics are closely Demographics are closely related to needs, wants and related to needs, wants and usage ratesusage ratesPsychographic Psychographic segmentationsegmentationBehavioral segmentationBehavioral segmentationUsing multiple Using multiple segmentation variablessegmentation variablesKey TopicsKey Topics8- 11Market SegmentationDemographic Demographic Segmentation VariablesSegmentation VariablesAgeAgeGenderGenderFamily sizeFamily sizeFamily life cycleFamily life cycleIncomeIncomeRaceRaceOccupationOccupationEducationEducationReligionReligionGenerationGenerationNationalityNationality8- 12What type of demographic segmentation is reflected by this ad?8- 13Market SegmentationSegmenting Segmenting Consumer MarketsConsumer MarketsSegmenting Segmenting Business MarketsBusiness MarketsSegmenting Segmenting International MarketsInternational MarketsRequirements for Requirements for Effective SegmentationEffective SegmentationGeographic segmentsGeographic segmentsDemographic Demographic segmentation segmentation Psychographic Psychographic segmentationsegmentationLifestyle, social class, and Lifestyle, social class, and personality-based personality-based segmentationsegmentationBehavioral segmentationBehavioral segmentationUsing multiple Using multiple segmentation variablessegmentation variablesKey TopicsKey Topics8- 14Swatch targets those with an active lifestyle8- 15Market SegmentationSegmenting Segmenting Consumer MarketsConsumer MarketsSegmenting Segmenting Business MarketsBusiness MarketsSegmenting Segmenting International MarketsInternational MarketsRequirements for Requirements for Effective SegmentationEffective SegmentationGeographic segmentsGeographic segmentsDemographic Demographic segmentation segmentation Psychographic Psychographic segmentationsegmentationBehavioral segmentationBehavioral segmentationTypically done firstTypically done firstUsing multiple Using multiple segmentation variablessegmentation variablesKey TopicsKey Topics8- 16Market SegmentationBehavioral Behavioral Segmentation VariablesSegmentation VariablesOccasionsOccasionsBenefitsBenefitsUser StatusUser StatusUser RatesUser RatesLoyalty StatusLoyalty StatusReadiness StageReadiness StageAttitude Toward Attitude Toward the Productthe Product8- 17Occasion segmentation: Altoids’ “Love Tin” is a “curiously strong valentine”8- 18Checkout Direct offers retailers & manufacturers an excellent method of reaching segments of heavy users, as well as users of the