Chapter 9: Segmentation, targeting, and positioning. After reading this chapter, you should be able to: Outline the different methods of segmenting a market; describe how firms determine whether a segment is attractive and therefore worth pursuing; articulate the differences among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing; determine the value proposition.
chapter nine segmentation, targeting, and positioning Copyright © 2015 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education LEARNING OBJECTIVES LO 9-1 Outline the different methods of segmenting a market LO 9-2 Describe how firms determine whether a segment is attractive and therefore worth pursuing LO 9-3 Articulate the differences among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing LO 9-4 Determine the value proposition LO 9-5 Define positioning and describe how firms it 92 Segmentation, Targeting, Positioning Process Step • Strategy or Objectives Segmentation Step • Segmentation Methods Step • Evaluate Segment Attractiveness Targeting Step • Select Target Market Step • Identify and Develop Positioning Strategy Positioning 93 Step 1: Establish Overall Strategy or Objectives Check Yourself Derived from mission and current state ©M Hruby 94 Step 2: Segmentation Methods Segmentation Method Sample Segments Geographic Continent: North America, Asia, Europe, Africa Within U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast Demographic Age, gender, income Psychographic Lifestyle, self-concept, self-values Benefits Convenience, economy, prestige Behavioral Occasion, loyalty 95 Geographic Segmentation ©ImagineChina 96 Demographic Segmentation Most common segmentation strategy ©Stockbyte/Getty Images U.S Census Bureau Website 97 Psychographic Segmentation ©Benetton Group SPA; Photo by: Oliviero Toscani 98 Geodemographic Segmentation Source: Reprinted with permission of The Nielsen Company Claritas Website 99 Benefit Segmentation ©image100/PunchStock ©image100/PunchStock Michael Hevesy/Photodisc/Getty Images 910 Responsive Customers must: 917 Profitable Homeowners Businesses 75,000 1,000 1% 20% $100 12 times $500 20 times 60% 80% Fixed costs $400,000 $1,000,000 Segment profit $140,000 $600,000 Segment size Segment adoption percentage Purchase behavior Purchase price Frequency of purchase Profit margin percentage 918 Step 4: Selecting a Target Market • Conde Nast has more than 20 niche magazines focused on different aspects of life ©M Hruby 919 Segmentation Strategy 920 Step 5: Develop Positioning Strategy Photo by Tiffany Rose/WireImage/Getty Images 921 Positioning Steps 922 Perceptual Maps 923 check yourself • • What is a perceptual map? Identify the six positioning steps 924 Glossary Benefit segmentation groups consumers on the basis of the benefits they derive from products or services Return to slide 925 Glossary Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, and education Return to slide 926 Glossary Geodemographic segmentation uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers Return to slide 927 Glossary Geographic segmentation organizes customers into groups on the basis of where they live Return to slide 928 Glossary Behavioral segmentation divides customers into groups based on how they use the product or service Return to slide 929 Glossary Psychographic segmentation, or psychographics, allows people to describe themselves using characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine these choices Return to slide 930 Glossary The Value and Lifestyle Survey (VALS) is a psychographic tool that classifies consumers into eight categories based on their answers to a questionnaire Return to slide 931 ... differentiated, concentrated, or micromarketing LO 9-4 Determine the value proposition LO 9-5 Define positioning and describe how firms it 92 Segmentation, Targeting, Positioning Process Step • Strategy...LEARNING OBJECTIVES LO 9-1 Outline the different methods of segmenting a market LO 9-2 Describe how firms determine whether a segment is attractive and therefore worth pursuing LO 9-3 Articulate the... Target Market Step • Identify and Develop Positioning Strategy Positioning 93 Step 1: Establish Overall Strategy or Objectives Check Yourself Derived from mission and current state ©M Hruby 94