Instructor: Amir Ekhlassi (4) Market Segmentation, Targeting, & Positioning

Instructor: Amir Ekhlassi

(4)Market Segmentation, Targeting,

& Positioning

STP Process Market Segmentation: Dividing a market into

smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.

Market Targeting: the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Market positioning: arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

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Market segmentation

Levels of Market segmentation Mass marketing (same product, same way to

all customers)Segment marketing (efficiency, effectiveness,

less competition)Niche marketing (segment subgroup)Micro marketing (no economies of scale,

logistics problems, brand overall image dilute)Local marketingIndividual marketing


Major segmentation variables for consumer markets

GeographicDemographicPsychographic Behavioral


Geographic segmentation

Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.World region or countryCountry regionCity or metro size (under 5000, above 5000)Density (Urban, Suburban, Rural)Climate (Northern, southern)


Demographic segmentation Dividing the market into groups based on demographic

variables such as age, sex, family size, family life-cycle, income, occupation, education, religion, race, and nationality Age Gender (cosmetics, clothing, cars)Family sizeFamily life cycleIncomeOccupationEducationReligionRaceGenerationNationality


Demographic segmentation(cont’d)

Note:Note: marketers must be cautious about segmenting consumers based on their actual age. People’s behavior, affect, and cognitions are more related to their psychological age than to their chronological age. This suggest marketers should analyze subjective or cognitive age (the age one thinks of oneself as being) rather than chronological or actual age.


Psychographic segmentation

Dividing a market into different groups based on social class, lifestyle, or personality characteristics. Social classLifestylePersonality


Behavioral segmentation Dividing a market into groups based on consumer

knowledge, attitude, use, or response to a product. Occasions (regular, special)BenefitsUser status (non-user, ex-user, potential user, first

time user, regular user)User rates (light, medium, heavy)Loyalty status (none, medium, strong, absolute)Readiness stage (unaware, aware, informed,

interested, desirous) Attitude toward product (enthusiastic, positive,

indifferent, negative, hostile) 9 ©Compiled by: Amir Ekhlassi

Multiple segmentation basesMarketers rarely limit their segmentation

analysis to only one or a few variables. Rather, they are increasingly using multiple segmentation bases in an effort to identify smaller, better-defined target groups.

One good example of multivariable is “ geodemographic”“ geodemographic” segmentation.

PRIZM system: segmenting America’s neighborhoods


Requirements for effective segmentation

MeasurableAccessibleSubstantialDifferentiableActionable


Selecting market segments ( A target market) A target marketA target market consists of a set of buyers

who share common needs or characteristics that the company decides to serve.

There are three market-coverage strategies:Undifferentiated marketingDifferentiated marketingConcentrated marketing


Choosing a market-coverage strategy

Company resourceProduct variabilityProduct Life-cycle stageMarket variabilityCompetitor’s marketing strategy


Positioning for competitive advantage

A product’s position:A product’s position: is the way the product is defined by consumers on important attributes – the place the product occupies in consumer’s minds relative to competing products. Positioning involves implanting the brand’s unique benefits and differentiation in customer’s minds.


Choosing a positioning strategy

The positioning strategy consists of three steps:Identifying a set of possible competitive

advantages upon which to build a positionChoosing the right competitive advantages Selecting an overall positioning strategy


Which differences to promote?Important DistinctiveSuperior CommunicablePreemptiveAffordableProfitable


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کالم آخر

نخستین بار گفتش کز کجایی؟بگفت: از دار ملک آشناییبگفت: آنجا به صنعت در چه کوشند؟بگفت: انده خرند و جان فروشندبگفتا: جان فروشی در ادب نیست بگفت: از عشق بازان این عجب

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Instructor: Amir Ekhlassi (4) Market Segmentation, Targeting, & Positioning