STP 2010 June

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Segmentation, Targeting and Positioning

Yasas Hewage

Snr. Lecturer Strategy

8/8/2019 STP 2010 June


• Mass Marketing• Segmented Marketing

• Niche Marketing

• Micro Marketing

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Segmentation• Segmentation is

the process of breaking down the mass market into

meaningful buyer groups

based on selected attributes

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Bases for Segmentation

• Consumer bases

– Demographics – Socio-economic

– Geographic

– Personality andlifestyle

– Purchase occasion

– User status

– Usage rate

– Benefits sought

• B2B bases

– Demographic(industry/size)

– Geographic

– PurchasingApproaches

– User status

– Usage rate

– Order size

– Benefits sought

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• Is theidentification of market segmentsbased on where

people live andtheir lifestyles.

Geodemographics

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Psychographics InnovatorsInnovators are successful, sophisticated,take-charge people with high self-esteem…

ThinkersThinkers are motivated by ideals.They are mature, satisfied, comfortable….AchieversMotivated by the desire for achievement,Achievers have goal-oriented lifestyles and

a deep commitment to career and family…ExperiencersExperiencers are motivated byself-expression. As young, enthusiastic,and impulsive consumersBelieversLike Thinkers, Believers are motivated byideals. They are conservativeStriversStrivers are trendy and fun loving. Becausethey are motivated by achievement, Striversare concerned about the opinions andapproval of others.

MakersLike Experiencers, Makers are motivated by self-expression. They express themselves and experiencethe world by working on itSurvivorsSurvivors live narrowly focused lives. With few

resources with which to cope,

VALS Framework(SRIC- BI) SRI consultants Business Intelligence

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Sporty/O

ut door

1M +

Status

Symbol

Unique

& Classy

Speed & PowerStyle &

Fashion

Economy &

PracticalityBenefit Sought

Super

star

300K – 1M

lowMediumHighUser Rate

Ethical

animal

Master of

universe

Executive

Boss

Working

familyman/Women

Upwardly

mobileexecutive

Personality &Lifestyle

151k - 300K101K – 150k51K – 100K \35K to 50KIncome (monthly)

Transvestites

She maleFemaleMaleGender

46 +36- 4529 - 3523 - 28Age

Bases of

Segmentation

Segment A

Female, Age 23 to 35 with an income 35K to 50K,Working with Family looking for Economy and Practicality and High use

Segment BFemale, Age 28 to 45 with an income 100K to 300K,Working with Family looking for Style and Fashion and High use

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• Measurable - The segments revealed

should be easy to measure.

• Substantial - The segments revealed

should be large enough to serve.

•Accessible -

The marketer should beable to reach the segments revealed.

• Differentiable – Conceptually

distinguishable and respond to differently

to different marketing mix elements

programs

• Actionable – Effective programs

should be able to be formulated

To be useful…segments should be

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What about B2B or an NGO ?

• Can you carve outSegments

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DevelopersGovernment &

Education

ExecutivesSmallBusiness

Now handled by ‘Lenovo’

SMEEnterpriseResidential

ProjectsEmergingCorporates

CorporateConsumer

Education &

Healthcare

(public

sector)

Government,Medium &LargeBusiness

Small

Business

Home &Home Office

BusinessConsumer

Suntel

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Targeting

• Once Segments areIdentified it mustdecide how many and

which ones to target

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Targeting• (1) Evaluate each

Segment

- Segmentattractiveness

- Companies objectivesan resources

• (2)Targeting Strategies

– single segment to fullmarket coverage

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• Red Bull ® Energy Drink fortired minds and exhaustedbodies – Supplies lost substances and reduces

harmful substances. – Provides immediate energy and vitamins.

• Its More than just a hot secret for the – Night owl and the non-stop party-animal.

– It is appreciated by a wide range of people,such as the

• Overworked taxi driver,

• The stressed manager,• The exam-anxious student• The pressured journalist….• Surfers in the summer• Snowboarders in the winter.

Red Bull® is an Energy Drink that works.

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Coca Cola Company

Soft DrinksCoke,Nalu,zenzavo

Sprite,Fanta

Energy DrinksFull throttle, TAB energy,

Burn

Sports drinksPOWERADE,Aquarius

Juices/Juice DrinksMazza, Hi-C,Andina,

Minute Maid

Tea & CoffeeGeorgia, Golden Peak,

Haru Green tea

WaterCiel,Valser

Share of thirst/Beverage Market

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Positioning

Yasas Hewage

Snr. Lecturer Strategy

8/8/2019 STP 2010 June


Positioning

• Positioning is

Designing thecompanies Offeringand Image to

occupy a Distinctiveplace in the Mind ofthe Target Customer

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Positioning Concepts• Positioning concepts

• Functional positions – Solve problems – Provide benefits to customers

• Symbolic positions

– Self-image enhancement – Ego identification – Belongingness and social

meaningfulness

• Experiential positions – Provide sensory stimulation – Provide cognitive stimulation

• Further Concepts

• Re-positioning: involveschanging the identity of aproduct, relative to the identityof competing products, in thecollective minds of the targetmarket.

• De-positioning: involvesattempting to change theidentity of competing products,

relative to the identity of yourown product, in the collectiveminds of the target market.

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• Perceptual mapping is agraphics technique usedby marketers thatattempts to visuallydisplay the perceptions ofcustomers or potential

customers.

• This sample of consumers feltPorsche was the sportiest andclassiest of the cars in the study (top

right corner).

• They felt Plymouth was most practicaland conservative (bottom left corner).

• Cars that are positioned close to eachother are seen as similar on therelevant dimensions by the consumer

• For example consumers see Buick,

Chrysler, and Oldsmobile as similar

Documents

STP 2010 June