chapter
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Segmentation, Targeting, and
Positioning
L E A R N I N G O B J E C T I V E S
LO1 Identify the five steps in the segmentation, targeting and positioning process.
LO2 Outline the different methods of segmenting a market.
LO3 Describe how firms determine whether a segment is attractive and therefore worth pursuing.
LO4 Articulate the difference among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing.
LO5 Define positioning, and describe how firms do it.
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Segmentation, Targeting,
Positioning Process
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Step 1: Establish Overall
Strategy or Objectives
Check Yourself
Derived from mission and current state
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Step 2: Segmentation Methods
8-5

Step 3: Evaluate Segment
Attractiveness
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Identifiable
• Who is in their market?
• Are the segments unique?
• Does each segment require a unique marketing mix?
Liquidlibrary/Dynamic
Graphics/Jupiterimages
Liquidlibrary/Dynamic
Graphics/Jupiterimages
Comstock Images/JupiterImages
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• Too small and it is insignificant
• Too big and it might need it’s own store
Substantial
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©Digital Vision/PunchStock
Reachable
Know the product exists
Understand what it can do
Recognize how to buy
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Responsive
Customers must:
React positively to firm’s offering
Move toward the firms products/services
Accept the firm’s value proposition
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Profitable
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Step 4: Selecting a Target Market
• Conde Nast has more than 20 niche magazines focused on different aspects of life.
©M Hruby
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Segmentation Strategy
8-13

Step 5: Develop Positioning Strategy
Positioning
Methods
•Value
•Salient Attributes
•Symbol
•Competition
Photo by Tiffany Rose/WireImage/Getty Images
8-14

Perceptual Maps
8-15

Positioning Steps
1. Determine consumers’ perceptions and evaluations in relation to competitors’.
2. Identify competitors’ positions
3. Determine consumer preferences.
4. Select the position.
5. Monitor the positioning strategy.
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