7-1 Density or Climate City or Metro Size World Region or Country Step 1. Market Segmentation...

7-1

Density or Climate

City or Metro Size

World Region or Country

Step 1. Market SegmentationGeographic Segmentation

7-2

Step 1. Market SegmentationDemographic Segmentation

Dividing the market into groups based on variables such as:

AgeLife-cycle stage or family sizeGenderIncomeOccupationEducationReligionRaceNationality

7-3

Step 1. Market SegmentationPsychographic Segmentation

Divides Buyers Into Different Groups Based On:

7-4

Step 1. Market SegmentationBehavioral Segmentation

Dividing the market into groups based on variables such as:

OccasionsBenefits soughtUser statusUsage rateLoyalty status

7-5

Identifying Possible Competitive Advantages

Key to winning and keeping customers is to understand their needs and buying processes better than competitors do and deliver more value.

Competitive advantage – extent that a company can position itself as providing superior value to selected target markets.

7-6

ServicesDifferentiation

i.e. Delivery, Installation, Repair Services,

Customer Training Services

Product Differentiation

i.e. Features, Performance, Style & Design, Attributes

Identifying Possible Competitive Advantages

People Differentiationi.e. Hiring, Training Better People Than

Competitors Do

ImageDifferentiation

i.e. Symbols, Characters

ChannelDifferentiati

on

7-7

VolvoThis ad demonstrates how Volvo positions on the specific product attribute of safety.http://www.volvocars.com

7-8

Communicating and Delivering the Chosen Position

Take strong steps to deliver and communicate the desired position to target consumers.

Entire marketing mix must support the positioning strategy.

Positioning strategy must be monitored and adapted over time to match changes in consumer needs and competitors’ strategies.