Marketing Segmentation, Targeting and Positioning

 Segmentation is the process of classifying customers into groups which share some
common characteristic
 Targeting is the process of evaluating each segment and choosing one or more of the
segments to enter.
 Positioning is arranging for a product to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers.
Advantages of segmentation
 The process of breaking up a homogeneous market into heterogeneous segments forces
the marketer to analyze and consider both the needs of the market and the company’s
ability to competently serve those needs – thereby making the company better informed
about its customers.
 Competitor offerings and marketing positioning must also be analyzed in this context so
the company must consider what its competitive advantages and disadvantages are,
helping it to clarify its own positioning strategy.
Requirement for effective segmentation
1. Measurable
 Size, purchasing power, profiles of segments can be measured.
2. Accessible
 Segments can be effectively reached and served.
3. Substantial
 Segments are large or profitable enough to serve.
4. Differential
 Segments must respond differently to different marketing mix elements &
programs.
5. Actionable
 Effective programs can be designed to attract and serve the segments.
Bases of segmentation
 Geographic segmentation- This type of market segmentation divides people on the basis
of geography. Your potential customers will have different needs based on the geography
they are located in.
 Nations
 States
 Regions or cities
 Demographic segmentation -Demographic segmentation is one of the simplest and
widest type of market segmentation used.
 Age
 Gender
 Income and etc.
 Psychographic segmentation- Psychographic segmentation is one which
uses lifestyle of people, their activities, interests as well as opinions to define a market
segment. Psychographic segmentation is quite similar to behavioral segmentation.
 Social class
 Lifestyle
 Personality
 Behavioral segmentation- This type of market segmentation divides the population on
the basis of their behavior, usage and decision making pattern.
 Occasions
  Benefits
 User status
 Loyalty
Market targeting: Evaluating marketing segments
 Segment size and growth
 Analyze sales, growth rates and expected profitability for various segments.
 Segment structural attractiveness
 Consider effects of: Competitors, Availability of Substitute Products and, the Power of
Buyers & Suppliers.
 Company objectives and resources
Market coverage strategies
 Undifferentiated marketing-The undifferentiated marketing strategy focuses on an
entire target market rather than a segment of it. This strategy employs a single marketing
mix -- one product, one price, one placement and a single promotional effort -- to reach
the maximum number of consumers in that target market.
 Differentiated marketing- A differentiated marketing strategy targets different market
segments with specific marketing mixes designed especially to meet those segments'
needs. Each mix includes a product, price, placement and promotional program
customized specifically for a particular segment.
 Concentrated marketing- the concentrated strategy provides a third-way solution that
allows marketers to target a single market segment with a single marketing mix. The
ability to specialize to this degree has the advantage of allowing a company to focus its
resources on meeting the needs of a single, well-defined and well-understood market,
which makes it more competitive against larger companies.
Marketing mix
A marketing mix consists of the four P's: product, price, placement and promotion. Product is not
only the goods or services you sell but also the traits that make them attractive to consumers,
such as design and packaging. Price considers list price as well as discounts, financing and
options, such as leasing, according to QuickMBA. Placement refers to distribution -- the
locations where your products will be sold and the process you use to get them there. Promotion
communicates the benefits and features of your product to consumers through advertising and
public relations and the media you use to execute them.
Positioning for competitive advantage
 Marketers should:
 Plan positions to give their products the greatest advantage in selected target
markets,
 Design marketing mixes to create these planned positions.
Choosing a position strategy
1. Identify competitive advantage – an advantage over competitors gained by offering
greater customer value, either by having lower prices or providing more benefits that
justify higher prices.
2. Selecting the Right Competitive Advantage-Unique Selling Proposition (USP).
3. Communicating and Delivering the Chosen Position.
4. Support the positioning strategy with a unique marketing mix.

Supporting the positioning strategy

 Developing the marketing mix.
  References:
Google: Leonard Walletzký| Chapter 6. Market Segmentation, Targeting, and Positioning for
Competitive Advantage| pages 3, 5, 6, 9, 13, 16, 18, 21. Retrieved on November 2017 at
https://is.muni.cz/el/1433/jaro2015/PV240/um/PA240_-_L3_-_Market_segmentation.pdf
Google: Daria Kelly Uhlig | What Is the Difference between Differentiated & Undifferentiated
Marketing Strategies?| 2008 Retrieved on November 2017 at
http://smallbusiness.chron.com/difference-between-differentiated-undifferentiated-marketing-
strategies-26197.html