2. Topics for
Today:
Segmentation,
Targeting,
Positioning
1. Segmentation
1.1 Geographic Segmentation
1.2 Demographic Segmentation
1.3 Psychographic Segmentation
1.4 Behavioural Segmentation
2. Requirements for Effective Segmentation
3. Targeting
3.1 Undifferentiated Targeting
3.2 Focused Targeting
3.3 Differentiated Targeting
4. Positioning
4.1 Case Studies: Gillette, Apple, Dove, United Colors of
Benetton
4.2 Keys to Effective Positioning
4.3 Perceptual Maps
3. • Market segmentation
and targeting is a
fundamental part of
marketing strategy.
• It helps organisations
deal with the factor that
not all consumers or
business customers
share identical needs,
buying behaviour or
product requirements.
4. • Limited resources results in
organisations being unable to
serve all the needs of all the
people in the market.
• Markets must make choices
based on the relative merits of
different market segments in
determining which groups to
prioritise.
11. Psychographic Segmentation would tell you more about your
customer’s mindset
• Does he want value for money (very particular about price)
• Is she looking for prestige, status?
• Is he pleasure-loving? Wants fun, a good time.
• Does she value aesthetics – love beautiful things?
• Loves high technology products?
• Loves Eco friendly products – conscious of the environment
You can add qualities depending on your product
12. Behavioural
Segmentation
Behavioral segmentation is
the observation of each
customer’s actions.
Once users are identified by
their specific behavior,
marketers can target
messages and campaigns
specifically tailored to these
audiences.
19. Targeting
• Targeting involves breaking the target
audience into segments and then
designing marketing activities that will
reach the segments most likely to be
responsive to your efforts.
• Target marketing can greatly increase
the success
20. Targeting
strategies
• UNDIFFERENTIATED Targeting
• Targets the entire market with one marketing
mix
• You have the same product, the same price, the
same place, and the same promotion for the
entire market – e.g. McDonald’s
22. Targeting
strategies
• DIFFERENTIATED Targeting
Targets two or more segments with a different
marketing mix for each segment
• The Toyota brand sells high-quality cars for a
reasonable price.
• The Lexus Car brand, that Toyota owns, aims at
the premium end of the car market.
23. Targeting
strategies
• FOCUSED
• Targets a single segment
• UNDIFFERENTIATED
• Targets the entire market with one marketing
mix
• DIFFERENTIATED
• Targets two or more segments with a different
marketing mix for each segment
29. • The Positioning of Apple Inc.
• Apple has positioned itself to be a lifestyle
product for wealthy people, innovators and
people with good jobs.
• Apple has become a desired product but not
easily affordable.
• This premium positioning helps Apple in the
long term.
• When people can afford to buy Apple products
they do not haggle about price, price would be
secondary and the image of having an Apple
product is more important.
52. Perceptual Mapping
A visual representation of
consumers perceptions of a market
How?
Identify the competing brands
Identify important attributes
Conduct research
Plot on two-dimensional map
53.
54. Perceptual Map - UK Car market
Prestige, Status
Economy
Personal,
Emotional
Basic,
Rational
