Lecture M: Marketing (4/e) - Chapter 9: Segmentation, targeting, and positioning

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