SEGMENTATION%20AND%20POSITIONING

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SEGMENTATION AND POSITIONING

• MARKETING MANAGEMENT
• SESSION 6
• October 6, 1999

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SESSION OUTLINE

• Segmentation
• Definition
• Steps for segmenting the market
• Criteria of a good segmentation
• Choosing a Target Market
• Positioning
• Definition
• Perceptual maps
• Positioning strategies
• Video case Creating Bread

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DEFINITION OF A SEGMENT

• Group of people
• With similar demand curves
• Which exists in the market
• Can be described with appropriate variables
• Differs from other segments

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STEPS IN SEGMENTING A MARKET

• Define generic and product-markets
• Select behavioral or attitudinal variables to
  identify segments
• Examine segments along qualifying and determining
  dimensions
• Evaluate segments

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CRITERIA OF A GOOD SEGMENTATION PATTERN

• Measurable
• Accesible
• Substantial
• Actionable

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THINGS TO REMEMBER ABOUT SEGMENTATION

• Segments must exist in the marketplace
• More than one segmentation pattern may exist
• Segments can shift over time
• Targeting one or more segments is more profitable
  than targeting the entire market
• Segmentation is at the core of a successful
  marketing strategy

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TARGETING STRATEGIES

• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing

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POSITIONING

• Part of the marketing strategy which allows to
  give the product/service its own identity
• Positioning is a competitive tool
• Positioning can be operated at the physical level
  or at the perceptual level
• A strong position in buyers minds gives the
  product a competitive advantage

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PERCEPTUAL MAPS

• Indicate where a product stands in buyers minds
  relative to its direct and indirect competitors
• Horizontal and vertical axes are perceived
  relevant dimensions of the product category
• Distances between two brands are perceived
  competitive distances
• Ideal tool for positioning strategies

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POSITIONING STRATEGIES

• Move brand closer to ideal point
• Move ideal point closer to brand
• Change relevance of dimensions
• Introduce a new brand close to ideal point

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NEXT CLASS

• Product decisions, chapter 8
• Definition of product, classifications
• Product decisions
• Review for mid-term