Marketing

-Marketing Segmentation, Targeting and Positioning

INSTRUCTOR: YU CHENG, CLAIRE

MARKETING 1
 What kind of the breakfast cereal would you like to choose?

Colorful and sugary, Diet product, Healthy and cheap

Cereal bar
high calorie Low fat
Hot or cold Hot
Hot or cold

MARKETING 2
What customers do they serve?

The Ritz-Carlton targets the top 5

percent of corporate and leisure
travelers
7 days inn targets economic-class
people travelling on a budget.

MARKETING 3
Designing a customer-driven marketing strategy

MARKETING 4
Group discussion-Hotel’s STP
Assume that you are going to run a hotel, discuss below questions with
your group.

1. Which small groups of customer that you can segment?

2. Evaluate and choose your target(one or some of the segments) market?
3. How to differentiate your hotel with your competitors? Using your
imagination to make it unique and special.
4. What is the positioning of your hotel?

MARKETING 5
 Finland

Tanzania
Bali, Indonesia

MARKETING 6
Market segmentation
There is no single way to segment a market. A marketer has to try different
segmentation variables, alone and in combination, to find the best way to view
the market structure.

Major variables listed below:

⚫Geographic segmentation 地理因素
⚫Demographic segmentation 人口统计因素
⚫Psychographic segmentation 心理因素
⚫Behavioral segmentation 行为因素

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Segmentation 市场细分

MARKETING 8
 Market segmentation-Geographic segmentation
Geographic segmentation break the market into sections by nations, regions,
provinces, parishes, cities or even neighborhoods.

Major variables
World region or country Western Europe, Middle East, Pacific Rim, North
America,
Country region China, France, United States
City or metro size Shenzhen, Beijing, Chengdu, Kunming
Density Urban, suburban, rural
Climate Northern, southern
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 Market segmentation-Geographic segmentation
Examples:
Food segmentation by provinces: Language study center
segmentation by nations

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Market segmentation-Demographic segmentation
Major variables
Age Under 6, 6-11, 12-19,20-34, 35-49, 50- 64, 65+
Gender Male, female
Family size 1-2, 3-4, 5+
Family life cycle Young, single, married, no children, married with children, single parents,
unmarried couples, older, married, no child under 18…
income Under ￥2000， ￥2001-5000， ￥5001-8000；…
Occupation Professional and technical; managers, officials, clerical, sales, supervisors,
farmers, retired, students, homemakers, unemployed
Education Primary school or less, secondary school, secondary school graduate,
college graduate.
Religion Jewish, Muslim, Hindu, Buddhist, other
Race Asian, Hispanic, Black, White
Generation Baby boomer, Generation X, Millennial
Nationality South American, British, French,
MARKETING
German, Italian, Japanese 11
Market segmentation-Demographic segmentation
Demographic segmentation divides the market into groups based on variables
such as age, gender, family size, family lifecycle, income, occupation, education,
religion, race, generation and nationality
Income/ occupation
Age and life-cycle

MARKETING 12
Market segmentation-Demographic segmentation
Gender:
Clothing, hairstyle, cosmetics Occupation

MARKETING 13
 Market segmentation-
Psychographic
segmentation
Psychographic segmentation divides
buyers into different groups based on
social class, lifestyle
or personality characteristics. People
in same demographic group can have
very different psychographic makeups.

MARKETING 14
 Market segmentation-Behavioral segmentation
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes,
uses, or responses to a product. Heavy usage, medium usage or low usage…
Occasion segmentation
E.g. Drink milk every day, weekly, monthly.

Usage way Usage status

• Heavy • Potential
• Medium • Non-user
• Light • Ex-users
• Non-user • Regulars
• First-timers
• Users of competitors’
product
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 Market segmentation-Behavioral segmentation
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes,
uses, or responses to a product. Heavy usage, medium usage or low usage…

Benefits segmentation
How do you choose the toothpaste?

e.g. some of the benefits users expect

include reduce sensitivity, teeth
whitening, cavity protection or fresh
breath.

MARKETING 16
 Discuss in group and list examples of product or service that
is segmented by below type.
⚫Geographic segmentation
⚫Demographic segmentation
Test yourself
⚫Psychographic segmentation
⚫Behavioral segmentation

MARKETING 17
Targeting 市场目标

MARKETING 18
Market Targeting
Evaluate market segments
In evaluating different market segments, a firm must look at three factors: segment size and
growth, segment structural attractiveness, and company objectives and resources.
1. Collect and analyze data on current segment sales, growth rates and expected profitability.

2. Examine major structural factors that affect long-run segment attractiveness.

E.g. a segment is less attractive if it already contains many strong and aggressive competitors.

3. The segments should mesh with the company’s long-run objective.

E.g. luxury brand should maintain their marketing positioning.

MARKETING 19
Market Targeting- selecting target market segments
A target market consists of a set of buyers who share common needs or
characteristics that the company decides to serve.

Undifferentiated marketing(mass marketing) Targeting broadly

Differentiated marketing
Concentrated marketing (niche marketing)
Micromarketing (local or individual marketing)
Targeting narrowly

MARKETING 20
Market Targeting- selecting target market segments
Undifferentiated marketing(mass marketing) 无差异营销/大众营销
Using an undifferentiated marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer. The company designs a product and a
marketing program that will appeal to the largest number of buyers.
What is the product/market most people need?
E.g. everyone needs such as bread, soda, toothpaste and household appliances.
Haday flavoring

Q: what is the disadvantage of mass market?

Mass market often has trouble competing with more-focused firms that do a better job of
satisfying the needs of specific segments and niches.

MARKETING 21
 Market Targeting- selecting target market segments
Differentiated marketing (segmented marketing) 差异营销/细分市场
Using a differentiated marketing strategy, a firm decides to target several market segments and
designs separate offers for each.
E.g. Procter & Gamble markets 5 different laundry detergent brands, which compete with each other.

For a brilliant “Color expert”- A powerful Provide a The Original Scent

clean every time. ”Dirt goes. Color laundry gentle clean for You Love with
stays” detergent that is baby’s clothes Great Cleaning
tough on stains Power.
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Market Targeting- selecting target market segments
Differentiated marketing (segmented marketing)
Within each segment, Procter &Gamble has identified even narrower niches. For
example, you can buy regular Tide in different forms.

e.g. forms of detergent

Liquid
Stain remover
Powder
Dish cleaner
Floor cleaner

MARKETING 23
 Market Targeting- selecting target market segments
Concentrated marketing (niche marketing)（集中营销、补缺营销）the firms goes after a large
share of one or a few smaller segments or niches.

1. Niching lets smaller companies

2. Some mega
focus their limited resources on
marketers develop niche
serving niches that may be
markets to create sales
unimportant to or over looked by
growth.
larger competitors.

MARKETING 24
 Market Targeting- selecting target market segments
Micromarketing (local or individual marketing) is the practice of tailoring products and
marketing programs to suit the tastes of specific individuals and locations.
Local marketing (cities, neighborhoods even specific stores)

SoLoMo Social + Local + Mobile

MARKETING 25
 Market Targeting- selecting target market segments
Micromarketing (local or individual marketing) is the practice of tailoring products and
marketing programs to suit the tastes of specific individuals and locations.
Local marketing (cities, neighborhoods even specific stores)

Toyama City, Japan Zurich,Switzerland Chengdu, China

MARKETING 26
 Starbucks in Taikoo li,
Chengdu

MARKETING 27
 Starbucks in
Shinjuku, Tokyo

MARKETING 28
 Starbucks in Bangkok

MARKETING 29
Market Targeting- selecting target market segments
Micromarketing (local or individual marketing)
Individual marketing (one to one marketing), has made relationships with customers.
E.g. tailor custom-made suit, shoes, rings.

http://www.nike.com/cn/zh_cn/c/nikeid

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Positioning市场定位

MARKETING 31
 Differentiation and Positioning
How to create differentiated value for targeted segments and what positions it wants to
occupy in those segments?

A product’s position is the way the product is defined by consumers on important

attributes. “products are created in the factory, but brands are created in the mind”.
Positioning example of automobile market:
⚫Nissan and Honda Fit → Economy
⚫Mercedes → Luxury
⚫Toyota→ Fuel-efficient
⚫Volvo→ Safety

MARKETING 32
 Choosing a Differentiation
and Positioning Strategy

The differentiation and

positioning task consists of
three steps which are
identifying a set of Identifying a set Selecting an
differentiating competitive Choosing the
of differentiating overall
advantages on which to build a right competitive
position, choosing the right competitive positioning
advantages
competitive advantages, and advantages strategy
selecting an overall positioning
strategy.

6 - 33
 Choosing a differentiation and positioning strategy
Building a unique selling proposition that appeals to a substantial group. To the extent
that a company can differentiate and position itself as providing superior customer
value, it gains competitive advantages.

Hello Kitty Jet, EVA airline Jet Star Singapore Airline

MARKETING 34
 Choosing the Right Competitive Advantages
Number of differences to promote
• Developing a unique selling proposition (USP) for each
brand and sticking to it
• Positioning on more than one differentiator

Criteria of differences to promote

• Important
• Distinctive
• Superior
• Communicable
• Preemptive
• Affordable
• Profitable
6 - 35
MARKETING 36
Communicating and Delivering the chosen position
▪All the company’s marketing mix efforts must support the positioning
strategy.
▪Firm must take care to maintain the position obtained through
consistent performance and communication.
▪Product’s position should be monitored and adapted over time to match
changes in consumer needs and competitors’ strategies.

MARKETING 37
Tesco Homeplus Virtual subway store story 5%
Video:Home plus
P.S. This also available in Gatwick airport, London.

Discuss the below questions:

1. What is the STP strategy in the case?
2. Why the company choose this group of target customers instead of others?
3. What superior value the company bring to customers?

MARKETING 38
Summary
⚫Marketing segmentation
⚫Marketing targeting
⚫Differentiation and positioning

MARKETING 39
Presentation Task 5%
Choose 1 of below companies（Or choose one you prefer） and study their products line or
subsidiary companies. You can discuss the whole companies’ brands or products. Or choose
one product line under one brand to describe their marketing segmentation strategies and
the positioning.
1.Procter & Gamble
2. Mars
Requirement:
3. L’Oreal Presentation:12~15 mins
Q & A session: 5 mins
4. Unilever
5.Kraft
6. Intercontinental Hotels Group
7. Tencent

MARKETING 40
Form your group and choose the Company you are going to investigate. When you confirmed, Group leader
please send the Company and your group member in WeChat.
Students Date to Pre Group No. Group Leader
2+2 Students Apr 7th ,2020 (Tue) Group 1 (6 ss) 张静怡

Group 2 (6 ss) 王今池

Group 3 (6 ss) 闫君宇
Group 4 (5 ss) 黎昊霖
Visiting Students Apr 8th ,2020 (Wed) Group 1 (6 ss) 王子琳
Group 2 (6 ss) 欧珈羽
Group 3 (6 ss) 杨飞
Group 4 (6 ss) 曹颖
Foreign Students Apr 9th ,2020 (Thus) Group 1 (6 ss) Sopaul Ram 冉道明
Group 2 (5 ss) Otgonbold Munkhbold周元
Group 3 (5 ss) Cho Daehee 赵大熙
Group 4 (5 ss) Ahmad Bilal 艾一鸣
Group 5 (5 ss ) Dany Vathna 林丹妮

MARKETING 41