Technological University of the Philippines
City of Talisay, Negros Occidental
Market Segmentation, Target and
Positioning
Prepared By :
Fontanilla, Von Cedric
Faelago, Mary June
Fuentes, Johnrey
Flores, Matthew
Fortuna, Jaryl Vincent
BSET4- F
Submitted To:
Mr. Rengie Claver
Market Segmentation - Principles

Segmentation Variables
- Geographic
- Demographic
- Psychographic
- Behavioral
- Other (anything!)

No single best way to segment a market.

Often best to combine variables and identify smaller, better defined target groups.
Geographic Segmentation

. Divide markets into different geographic units.

Examples:
- World Region or Country: North America, Western
- Europe, European Union, Pacific Rim, Mexico, etc.
- Country Region: Pacific, Mountain, East Coast, etc.
- City or Metro Size: New York, San Francisco
- Population Density: rural, suburban, urban
- Climate: northern, southern, tropical, semi-tropical
Demographic Segmentation

Use Differences in:
- age, gender, family size, family life cycle, income, occupation, education, racve and religion
- Most feruently used segmentation variable

Ease of measurement and high availability.
Psychographic Segmentation
Behavioral Segmentation

Occasion
- Special promotions & labels for holidays.
- Special products for special occasions.

Benefits Sought
- Different segments desire diffrent benefits from the same products.

Loyalty Status
- Nonusers, ex-users,potential users, first-time users, regular

Usage Rate
- Light, medium, heavy.
Requirements for effective segmentation:
Segments must be
Measurable
-Accessible
-Substantial
-Differentiable
- Actionable
Target Marketing
Target Market

Consists of a set of buyers who share common needs or characteristics that the company
decides to serve.
Evaluating Market Segments

Segments size and growth

Segment structural attractiveness


Level of competition

Substitute products

Power of buyers

Powerful suppliers
Company objectives and resources
Selecting Target Market Segments

Undifferentiated (mass) marketing

Differentiated (segmented)

marketing

Concentrated (niche) marketing

Micromarketing (local or individual)
Choosing a Target Marketing Strategy
Considerations include:

Company resources

The degree of product variability

Product’s life-cycle stage

Market variability

Competitors’ marketing strategies
Socially Responsible Targeting

Some segments, especially children,

are at special risk

Many potential abuses on the

Internet, including fraud Internet

shoppers

Controversy occurs when the

methods used are questionable
Some ways of product positioning
1. Know Your Target Audience
Never give your target audience what they need. Give them what they want. People don’t buy
what they need. They buy what they want. It's the marketer's job to discover everything they
possibly can about the target audience. Understanding demographics, lifestyle, and spending
habits can make the difference between reaching and distancing the target audience. If you can
make your product positioning feel natural and unobtrusive, it can add a massive amount of
value to your marketing.
2. Tell Them Who You Are
Establish brand credibility and you can establish a long-term relationship with target audiences.
People that trust a brand are much more inclined to purchase from that brand. Don't make
promises or claims that can't be verified or aren't true. Honesty and transparency are the best
policies and will promote healthier product positioning.
3. Provide Evidence
You can't build brand credibility until you prove that your brand is reliable and trustworthy. The
best way to establish credibility is by presenting evidence. Customer reviews, testimonials, case
studies, sales numbers, and statistics are just a few methods that can be used to great effect.
Reviews are especially powerful. When was the last time you made a significant purchase
without reading reviews on Amazon.com, Ebay, or Quora? 61% of customers read reviews
online before making a purchasing decision..
4. Value Proposition
Your value proposition needs to answer a crucial question: How can your product improve the
lives of your customer? Your target audience will dismiss your product in a a heartbeat if they
don’t perceive any value This is the most important aspect of product positioning and one of the
hardest to execute effectively. Discover the most valuable aspects of your product and then look
for ways to promise and deliver on that value.
5.Unique Selling Proposition
How is your product unique? What distinct problem does it solve? In order to make this work
for your product positioning. you need to pinpoint exactly what makes your products and brand
unique.Then, convey those elements to your target audience. People love to have ownership in
brands and products that are different and can stand out.
STP plays an important role to get your right customers. All these 3 (segmentation, targeting and
positioning are the tools to align your products with the right customers.