Market Segmentation and
Positioning
Presentation Group # 6 :
George-Edouard Duriez
Morten Henriksen
Emma Sjöblom
Kristin Svenhed
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Table of content
•
Introduction to segmentation
•
Segmentation of consumer markets
•
Segmentation of organization markets
•
Target marketing
–
–
•
Evaluation
Strategies
Positioning
–
–
–
Efficient positioning
Position of a brand in a market
Repositioning
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Part #1 : Segmentation
Definition:
“The identification of individuals or
organizations with similar characteristics that
have significant implications for the
determination of marketing strategy”
ÆDivide market into submarkets and develop
a market mix for the different ones
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Why Segmentation ?
Target market
selection
Opportunities
And
threats
Market
segmentation
Tailored
Marketing
mix
Differentiation
4
The process of market
segmentation
Three steps :
• Understand the needs of different
customer segments
• Group customers according to their
needs in order to use appropriate
marketing mix
• Choose target market ; most profitable
market is preferred
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Segmenting consumer markets
Consumer segmentation
Behavioural
Benefit
Sought
Purchase
behaviour
Purchase
occasion
Perceptions
Usage
and beliefs
Psychographic
Lifestyle
Personality
Profile
Demographic
Geographic
Socio-economic
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Behavioural segmentation
• Benefits sought
– Different product benefits
• Purchase occasion
– Gift example
• Purchase behaviour
– Innovator segment
• Usage
– Heavy, light, non-users
• Perceptions, beliefs and
values
– Similarities
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Segmenting consumer markets
Consumer segmentation
Behavioural
Benefit
Sought
Purchase
behaviour
Purchase
occasion
Perceptions
Usage
and beliefs
Psychographic
Lifestyle
Personality
Profile
Demographic
Geographic
Socio-economic
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Psychographic segmentation
• Lifestyle
– Activities, interest and
opportunities
• Personality
– Marlboro example
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Segmenting consumer markets
Consumer segmentation
Behavioural
Benefit
Sought
Purchase
behaviour
Purchase
occasion
Perceptions
Usage
and beliefs
Psychographic
Lifestyle
Personality
Profile
Demographic
Geographic
Socio-economic
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Profile segmentation
• Demographic
• Socio-economic
• Geographic
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Part #2 : Segmenting
Organizational Markets
Definition:
“Business to business marketer profiles
organizations and organizational buyers”
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Method of org. segmentation
Business to
business
Organizational
market
Characteristics of the
buying organization
Macro segmentation
Characteristics of the
decision making within
each macrosegment
Micro –
segmentation
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Macrosegmentation
Three Macrosegments:
• Organizational size
– Small, medium large
• Industry
– Unique requirements
• Geographic location
– East vs. western
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Microsegmentation
Microsementation
Choice
criteria
Decision making
Unit structure
Decision-making
process
Buy class
Purchasing
Organization
Straight rebuy
Modified rebuy
New task
Organizational
innovativeness
Innovator
Follower
Laggard
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Part #3 : Target marketing
Definition:
“Target marketing is a choice of specific
segments to serve and is a key element of
marketing strategy”
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Evaluation of the segmentation
• Market factors
¾ Size
¾ Growth rate
¾ Profitability
¾ Sensitivity
¾ Bargaining power
¾ Barriers to entry and exit
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• Competitive factors
¾ Nature of competition
¾ New entrants
¾ Competitive differentiation
• Political, social and environmental factors
• Capability
¾
¾
¾
¾
Exploitable marketing assets
Cost advantages
Technological edge
Managerial capabilities and commitments
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Target marketing strategies
• Undifferentiated Marketing
Marketing Mix
Whole Market
• Differentiated Marketing
• Focused Marketing
Marketing Mix 1
Segment 1
Marketing Mix 2
Segment 2
Marketing Mix 3
Segment 3
Marketing Mix
• Customized Marketing
Marketing Mix 1
Customer 1
Marketing Mix 2
Customer 2
Marketing Mix 3
Customer3
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Part #4 : Positioning
The Aim :
“To create and maintain a distinctive place in
a market for a firm or a brand”
It answers two main questions :
Where we want to compete ?
ÆTarget market
How we want to compete ?
Æ Differential advantage
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The four criteria of an efficient
positioning :
• Clarity
• Consistency
• Credibility
• Competitiveness
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Tools to determine the position of a
brand in a market
• Perceptual mapping
4 steps :
1. Identify the competing brands
2. Identify important attributes used by
consumers to choose
3. Conduct marketing research to know how
the brands are scored on the different
attributes
4. Plot brands on a two-dimensional map
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• Perceptual mapping :
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• Spidergram positioning map
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Repositioning
• Image repositioning
• Product repositioning
• Intangible repositioning
• Tangible repositioning
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The End !
Any questions ?
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List of reference
• Jobber, D. (2007) Principles and Practice
of Marketing, 5th edition. McGraw-Hill
Education (UK)
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