McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Segmentation, Targeting, and
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.
Step 1: Establish Overall
Strategy or Objectives
Derived from mission and current state
Step 2: Segmentation Methods
Step 3: Evaluate Segment
• Who is in their market?
• Are the segments unique?
• Does each segment require a unique marketing mix?
• Too small and it is insignificant
• Too big and it might need it’s own store
Know the product exists
Understand what it can do
Recognize how to buy
React positively to firm’s offering
Move toward the firms products/services
Accept the firm’s value proposition
Step 4: Selecting a Target Market
• Conde Nast has more than 20 niche magazines focused on different aspects of life.
Step 5: Develop Positioning Strategy
Photo by Tiffany Rose/WireImage/Getty Images
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.