6-1
Chapter 6
Market
Segmentation,
Targeting, and
Positioning
6-2
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Goals
• Related concepts: market segmentation,
target marketing, and positioning
• Process of market segmentation, its benefits
and conditions for use
• Target-market strategies
• Steps in developing a positioning strategy
• Methods of forecasting demand of market
segments
6-3
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Markets
MARKET SEGMENTS
Groups of customers with different wants,
buying preferences or product-use behavior
TARGET MARKET
A market segment for which
the seller designs a marketing mix
MARKET SEGMENTATION
The process of identifying and describing
potential target markets
6-4
Market Segmentation
Process of dividing the total market
for a good or service into several smaller,
internally homogeneous groups
Members of each group are
similar with respect to the factors
that influence demand
6-5
Process of Market Segmentation
Identify wants within a market
Identify characteristics
Determine size and satisfaction
6-6
Market Segmentation Conditions
Measurable
and
Obtainable Data
Segment is
Accessible
Large enough
to be
Profitable
MICROMARKETING
Treat each single customer
as a separate segment
6-7
Market Segmentation - First Cut
Customer’s reason for buying
CONSUMER
Purchase for personal use
BUSINESS
Purchase to use in organizations,
to resell, or to make other products
6-8
Segmentation Bases
for Consumer Markets
6-9
Segmenting Business Markets
6-10
Target-Market Strategy
Market-aggregation
Strategy
“mass-market”
“undifferentiated-market”
and
Product differentiation
Strategy
6-11
Single
Marketing
Strategy
“shotgun”
Target-Market Strategy
Single-Segment
Strategy
“concentration ”
NICHE
MARKETERS
6-12
One
Marketing
Mix
Target-Market Strategy
Multiple-Segment
Strategy
Multiple
Marketing
Mixes
6-13
Selecting a Target Market
Guidelines
Compatible
with company’s goals
Match
market opportunity
with resources
Profit that
justifies investment
Competitors
are few and/or weak
6-14
Positioning
Firm creating and maintaining
in the minds of a target market a particular
image relative to competing products
THREE STEPS
Select position concept
Design the feature that
conveys position
Coordinate the marketing mix
to convey position
6-15
Perceptual Map
6-16
Forecasting Market Demand
MARKET SHARE
Proportion of total sales of a product
during a stated period
in a specific market
that is captured by a single firm
brand x
our company
brand y
brand z
MARKET FACTOR
1) exists in the market
2)is measurable
3)is related to the demand
for a product in a known way
6-17
Forecasting Market Demand
MARKET POTENTIAL
Total product sales
of a product
during a period
in a market
under ideal conditions
6-18
Forecasting Market Demand
SALES POTENTIAL
Portion of market potential
that a specific company
could expect
under ideal conditions
6-19
Forecasting Market Demand
SALES FORECAST
Estimate of sales
For one company
a stated period
during a period
in a specific market
assuming
a defined marketing plan
6-20
Methods of Sales Forecasting
Market-Factor
Analysis
Test
Marketing
Sales-Force
Composite
6-21
Survey of
Buyer Intentions
Past Sales
and
Trend Analysis
Executive
Judgment
Key Terms and Concepts
•
•
•
•
•
Market segments
Target market
Market segmentation
Micromarketing
Geographic
segmentation
• Demographic
segmentation
• Psychographic
segmentation
6-22
McGraw-Hill/Irwin
•
•
•
•
•
•
•
•
•
Personality
Lifestyle
Values
Behavioral segmentation
Market-aggregation
strategy
Product differentiation
Single-segment strategy
Niche marketers
Niche markets
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Terms and Concepts
• Multiple-segment
strategy
• Position
• Positioning
• Repositioning
• Demand forecasting
• Market share
• Market factor
• Market potential
• Sales potential
6-23
McGraw-Hill/Irwin
•
•
•
•
•
•
Sales forecast
Market-factor analysis
Direct-derivation method
Correlation analysis
Multiple correlation
Survey of buyer
intentions
• Test marketing
• Past sales analysis
• Trend analysis
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Terms and Concepts
• Sales-force composite
• Executive judgment
• Delphi method
6-24
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.