Segmentation
and Positioning
Principles
Buku : MARKETING STRATEGY
AND COMPETITIVE POSITIONING
Bab 10
Key issues
• Competition positioning
• Market segmentation
• Customer needs
2
Competitive positioning and
market segmentation
How
Competitivecustomers
positioningperceive
alternative
Market
offerings
Customer
needs
How
marketers
identify Market
groupssegmentation
of
customers
Market
3
Positioning and segmentation
•
•
•
•
Market segmentation
Choice of target markets
Competitive positioning
Iteration
4
Segmentasi Pasar
Pemilihan Pasar Sasaran
Posisi Berdayasaing
Stages in segmentation and positioning
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Principles of competitive positioning
Positioning is the act of designing the
company’s offering and image so that
they occupy a meaningful and distinct
competitive position in the target
customers’ minds (Kotler, 1997)
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Principles of competitive positioning
The essential principle of competitive positioning
is that it is concerned with how customers in
different parts of the market perceive the
competing companies, products / services or
brands.
It is important to bear in mind that positioning
may apply to any of these levels:
•Companies
•Products and services
•Brands
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Criteria to create
differentiation
• Importance
• Distinctive and pre-emptive
• Superior
• Communicable
• Affordable
• Profitable
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The four pillars of
company’s distinctive value proposition :
•Direct
• Hassle free
• Peace of mind
•Courtesy
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• Under-positioning
• Over-positioning
• Confused positioning
• Doubtful positioning
Kesalahan Utama Positioning
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Positioning risk and errors
Uniqueness claimed
Believable
Credibility
Narrow
Broad
Over-positioning
Too exclusive or
narrow
Under-positioning
Nothing special
Doubtful positioning
Less
Improbable claims
believable
Confused positioning
Unclear what the
position is
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The underlying premises of
market segmentation
– three basic propositions
1. Differ from one another
2. Identified by measurable characteristics
3. Isolate
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Major issues in market segmentation
1.
2.
The methodology of market segmentation
The criteria for testing segments as
robust market targets
3. The strategic segmentation decision
itself
4. The implementation of segmentation
strategy in the company
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Segmenting consumer markets
1.
Background customer characteristics
Objective measures
subculture, etc.
Socio economics
Occupation, income, education
Marketing
specific
2.
3.
Consumer life cycle
ACORN
media usage
Psychographics
Non-marketing Demographics
Sex, age, geography,
specific
Subjective measures
Personality
inventories
lifestyle
Customer attitudes
Customer behaviour
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The Warner index of status characteristics
Class
name
Description
Consumption characteristics
Upperupper
Elite social class with inherited
social position
Expensive, irrelevant, but purchase
decision not meant to impress;
conservative
Lowerupper
Nouveau riche; highly successful
business and professional;
position acquired through wealth
Conspicuous consumption to
demonstrate wealth, luxury cars, large
estates, etc.
Uppermiddle
Successful business and
professional
Purchases directed at projecting
successful image
Lowermiddle
White-collar workers, small
businesspeople
Concerned with social approval;
purchase decisions; conservative;
home and family oriented
Upperlower
Blue-collar workers, technicians,
skilled workers
Satisfaction of family roles
Lowerlower
Unskilled labour, poorly educated Attraction to cheap, ‘flashy’, lowpoorly off
quality items; heavy exposure to TV
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Stages of the family life cycle
Stage
Bachelor
Young, single, not living at parental home
Newly wed
Young couples, no children
Full nest 1
Youngest child under 6
Full nest II
Financial Circumstances And Purchasing Characteristics
Few financial burdens, recreation oriented; holidays;
entertainment outside home
Better off financially, two incomes; purchase home, some
consumer durables
Home purchasing peak; increasing financial pressures, may
have only one income earner; purchase of household
‘necessities’
Financial position improving; some working spouses
Youngest child over 6
Full nest III
Older married couples with dependent children
Empty nest I
Older married couples, no children at home
Empty nest II
Financial position better still; update household products and
furnishings
Home ownership peak; renewed interest in travel and leisure
activity; buy luxuries
Drastic cut in income; medical services bought
Older couples, no children at home, retired
Solitary survivor
Income good, but likely to sell home
Still in labour force
Solitary survivor
Retired
Special needs for medical care, affection and security
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Customer attitudinal characteristics
for segmentating markets
• Benefit segmentation
• Perceptions and preferences
• Summary of attitudinal bases of
segmentation
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Customer behavioural characteristics
for segmenting markets
• Purchase behaviour
Innovators
Brand loyalty
•
•
•
•
•
Consumtion behaviour
Communication behaviour
Response to element of the marketing mix
Relationship – seeking characteristic *
Summary of behavioural bases for segmentation
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Relationship – seeking characteristic *
Variables
Segments
•Relationship seekers
•Deal-makers
•Relationship
exploiters
•Loyal buyers
•Price-seekers
•Arm’s – length
transaction customers
•Brand loyalists
•Luxury innovator
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Segmenting business markets
•
•
•
•
Background company characteristics
Industry type
Company size
Customer location
Company technology
Customer capabilities
Purchasing organisation
Power structures
Purchasing policies
Product application
Attitudinal characteristics
Behavioural characteristics
Buyer-seller similarity
Buyer motivation
Buyer risk perceptions
Summary of bases for segmenting business markets
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Identifying and describing market segments
First order and second order segmentation
The benefits of segmenting markets
• Segmentation is a particularly useful approach to
marketing for the smaller company
• It helps to identify gaps in market
• In mature or declining markets it may be possible to
identify specific segments that are still in growth
• Segmentation enables the marketer to match the
product or service more closely to the needs of the
target market
• The dangers of not segmenting the market when
competitors do should also be emphasised
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IMPLEMENTING MARKET SEGMENTATION
1. The scope and purpose of market segmentation
Strategic intent,
vision and mission
Strategic
segmentation
Managerial
segmentation
Marketing planning,
budgeting and
resource allocation
Operational
segmentation
Operational sales,
marketing and
distribution management
Levels of segmentation
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IMPLEMENTING MARKET SEGMENTATION
2. Strategic, managerial and operational levels of
segmentation
• Strategic segmentation
• Managerial segmentation
• Operational segmentation
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IMPLEMENTING MARKET SEGMENTATION
3. Sources of implementation problems
• Organisation structure
• Internal politics
• Corporate culture
• Information and reporting
• Decision-making processes
• Corporate capabilities
• Operational systems
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MARKET SEGMENT ATTRACTIVENESS AND
ORGANISATIONAL RESOURCE STRENGTH
Organisational resource strength
High
Market
segment
attractiveness
Low
Best prospects
Attractive segments
that fit well with
High
organisational
resources
Build strength first
Attractive markets
but with poor fit with
organisational
resources
Poor prospects
Unattractive
Low segments that fit well
with organisational
resources
Worst prospects
Unattractive
segments with a poor
fit with organisational
resources
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