Market Segmentation, Target Marketing, and Positioning

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MARKETING STRATEGYO.C. FERRELL MICHAEL D.
HARTLINE
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Market Segmentation, Target Marketing, and
Positioning
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Market Segmentation Strategies (1 of 2)

• Traditional Approaches to Market Segmentation
• Mass Marketing
• Differentiated Marketing
• Multisegment Approach
• Market Concentration Approach
• Niche Marketing

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Mass Marketing Strategy
From Exhibit 6.1 (1 of 4)
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Multisegment Strategy
From Exhibit 6.1 (2 of 4)
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Market Concentration Strategy
From Exhibit 6.1 (3 of 4)
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Niche Marketing Strategy
From Exhibit 6.1 (4 of 4)
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Market Segmentation Strategies (2 of 2)

• Emerging Approaches to Segmentation
• One-to-One Marketing
• Mass Customization
• Permission Marketing
• Criteria for Successful Segmentation
• Identifiable and Measurable
• Substantial
• Accessible
• Responsive
• Viable

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Bases for SegmentingConsumer Markets

• Behavioral Segmentation
• Segments based on actual behavior or product
  usage
• Demographic Segmentation
• Segments based on demographic factors (e.g.,
  gender, age, income, education, etc.)
• Psychographic Segmentation
• Segments based on state-of-mind issues (e.g.,
  motives, attitudes, opinions, values, lifestyles,
  interests, personality, etc.)
• Geographic Segmentation
• Segments based on geographic location

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Bases for SegmentingBusiness Markets

• Type of Organization
• Organizational Characteristics
• Benefits Sought or Buying Processes
• Personal and Psychological
• Relationship Intensity

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Basic Target Marketing Strategies
Exhibit 6.6
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Differentiation and Positioning (1 of 2)

• Relative perception
• Process of creating favorable relative position
• (1) Identification of target market
• (2) Determination of needs, wants, preferences
  and
• benefits desired
• (3) Examination of competitors characteristics
  and
• positioning
• (4) Comparison of product offerings with
  competitors
• (5) Identification of unique position
• (6) Development of a marketing program
• (7) Continual reassessment

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Differentiation and Positioning (2 of 2)

• Differentiation Strategies
• Product Descriptors
• Product features
• Advantages
• Benefits
• Customer Support Services
• Image
• Positioning Strategies
• Strengthen the Current Position
• Repositioning
• Reposition the Competition