Market
Segmentation,
Targeting,
Positioning
Process
Marketing
Identify Tasks
MARKETING IS …
Select Segmentation Bases
IDENTIFICATION,
ANTICIPATION AND
PROFITABLE SATISFACTION
OF CUSTOMERS’ NEEDS
Market Segmentation
Targeting a Segment
Positioning of Product (Service)
Marketing Mix Choice and Marketing Planning
(Davies, 2012)
Marketing Strategy
Strategic Approaches
MARKETING STRATEGY IS …
 Mass Marketing
ABOUT CHOOSING OPPORTUNITIES
THAT SHOULD BE PURSUED,
SPECIFICATION OF TARGET MARKET ACTIONS
AND CREATION OF A
COMPETITIVE AND PROFITABLE EDGE
 Segmented Marketing
 Concentrated Marketing
(Dibb, 2012)
Confidential – for internal use only
1
Which Segments to Target?
Segmentation
1. Grouping customers
in heterogenic markets
into smaller, more similar or
homogeneous segments
2. Identification of
target groups of customers
with similar requirements and
buying characteristics
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Easy and clearly identifiable
Big enough in size (to make profit)
Growing or at least stable
Effectively accessible (reachable customers)
 Marketing communication channels
 Distribution channels
 In line with company’s objectives and
resources (relevant)
 Durability
 Entry investment needed
 Interdependency with other segments
Segmentation - Procedures
 Define the area of interest
 Identify variables
 Analysis
 Qualitative
 Quantitative
 Define the size of the segment
 Define the accessibility
 Criteria for marketing mix usage
Who Uses Segmentation?
Variables
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Demand
Customer characteristics
Buyer behaviour
Demographics
Geographical
Sociological
Psychological
Consumers
 Personal profile
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Companies – Mercedes (trucks, buses)
UNICEF – on “givers”
Hotels – Hilton (business, conference)
Media – Time (specific ads)
Schools (counter-segmentation, many
in depth courses)
 Demographic
 Socio-economical
 Geographic
 Psychological
 Behavioural side
 Needs and benefits
 Usage
 Perceptions and beliefs
 Purchasing habits
Confidential – for internal use only
2
Personal Profile Segmentation (1)
 Geographic differences
 National
 Regional
 In taste
 In usage
 Socio – economical differences
 Media exposure
 Consumption peculiarities
 Income level
 GDP
Personal Profile Segmentation (2)
 Demographics
 Age
 Life expectancy
 Education
 Sex
 Marital status
 Occupation
 Geodemographics and consumer habits
 Way of life
 Place to live
JICNARS (Joint Industry Committee for
National Readership Surveys)
Social
Grading
Scale
Target
Marketing and
Consumer
Behavior tool
used by media
to profile the
audience
Baines, et al (2008)
Confidential – for internal use only
Behavioural Segmentation
 Benefits needed (not features)
 Brand loyalty
 Usage frequency or rate (heavy, meduim,
light, occasional, non-users)
 Impact of lifestyle groups (memberships)
 Situational importance
 Marketing activities responsiveness
What? Where?
 What
 Volume
 Price
 Places
 Benefits of products or services
 Where
 Distribution channels
 End user points
 Geographical distribution
Who? Why?
 Who
 Demographics
 Purchasing powers
 Brand loyalty
 Type of users
 Personal characteristics and habits
 Lifestyle
 Why
 Attitudes
 Perceptions and opinions
 Interests and needs
3
Types of Consumers
Do it or Do Not! There is No Try!
 Personal Consumer
- and end-user who buys goods or services for his
own (or family) use or as a gift
 Organizational Consumer
- products, services and equipment to run the
organizations:
a) companies
b) non-profitable organizations (charities)
c) government agencies (national and local)
d) institutions (hospitals, schools)
B2B Marketing Segmentation (1)
Targeting
Macro level segmentation
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The decision
which market segments
a company prioritizes
for marketing and sales
Geographic locations
Industry type
Company Size (No of employees, turnover)
Type of purchasing procedures (tenders,
direct negotiations, etc.)
(Dibb, 2012)
B2B Marketing Segmentation (2)
Micro level segmentation
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Market Attractiveness Criteria
Decision making structure
Decision making process
Purchasing organization
Innovativeness
Confidential – for internal use only
Types of Targeting Strategies
 Dependant on the type of marketing
 Mass marketing

1 Marketing Mix – 1 Market
 Multi-segment marketing

Different Marketing Mix per each Segment
 Concentrated marketing

1 Marketing Mix per each Segment
4
Target Market Strategy Factors (1)
Targeting Strategies (1)
Mass Marketing
(Cravens, cited in
Dibb, 2012)
(Dibb, 2012)
Target Market Strategy Factors (2)
Targeting Strategies (2)
Multisegment
Marketing
 Market factors – size in value and units, annual
growth rate, price sensitivity, cyclicality, seasonality,
bargaining power of suppliers
 Competition – types of competitors, degree of
concentration, entries and exits, market share
 Financial and economic – contribution margin,
economies of scale, barriers to entry or exit, capacity
usage
 Technology – maturity, patents and copyrights
 Socio-political and regulatory – attitudes, pressure
groups, government, regulatory bodies, laws, EU
(Dibb, 2012)
(McDonald, cited in Dibb, 2012)
Market Attractiveness
Criteria (UK)
Targeting Strategies (3)
Companies’marketattractivenesscriteria
Concentrated Marketing
Firsttier:
• Profitability
Secondtier:
• Marketgrowth
• Marketsize
• Likelycustomersatisfaction
• Salesvolume
(Dibb, 2012)
Confidential – for internal use only
Thirdtier:
• Likelihoodofasustainable
differentialadvantage
• Easeofaccessforthebusiness
• Opportunitiesintheindustry
• Productdifferentiation
• Competitiverivalry
•
•
•
•
Marketshare
Relativestrength/keyfunctions
Customer’price sensitivity
Customerimageofcompany
Fourthtier:
• Technologicalfactors
• Fitwithbusinessstrategy
• Stabilityofmarket
• Environmentalfactors
• Threatofsubstitutes
• Barrierstoentry
• Negotiatingpowerofbuyer
• Easeofprofilingcustomers
• Supplierpower
(Dibb, 2012)
5
Opportunities Identification
and Selection
 Where is the biggest growth?
 Have all opportunities been assessed?
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Steps in Brand Positioning
1. Identify positioning of the competitors
2. Determine the desired positioning for your brand
3. Work out a set of actions to achieve desired
positioning
PESTEL
SWOT
Ansoff Matrix
BCG Grid
Porter’s 5 forces
4. Decide on the USP (the right positioning statement)
5. Marketing Plan – promote the brand to the target
market segment and key stakeholders within best
marketing channels
(Dibb, 2012)
Consumer Preferences
Positioning Map
Ansoff’s Matrix
Product
Present
Market
Present
New
New
Marketpenetration
Productdevelopment
‐ Higherdepotdensity
‐ MoresalesofproductX
‐ Protectionfrom“XYZ”
foroutdoorcustomers
Marketdevelopment
Diversification
‐ NewrangeofproductY
usingcurrenttechnology
todeliver“ABC”
‐ Brandedclothingrange
‐ Environmental
consulting
(Dibb, 2012)
(Dibb, 2012)
Wisdom Comes Gradually
Positioning
The process
of building an image
for a product or service
in the minds
of the target customers,
reflecting their expectations
and emphasizing on their importance.
(Dibb, 2012)
Confidential – for internal use only
6
References
1. Baines, P., Fill, C. & Page, K. (2011). Marketing. (2nd ed.).
New York: Oxford University Press
2. Davies, E. (2014). Successful Marketing in A Week.
Reading: Hodder & Stoughton
3. Dibb, S., Simkin, L., Pride, W. & Ferrell, O. (2012).
Marketing. Concepts and Strategies. (6th ed.). Hampshire:
Cengage Learning
4. Schiffman, L., Kanuk, L. & Hansen, H. (2012). Consumer
Behaviour: A European Outlook, International Edition.
(2nd ed.). Upper Saddle River: Pearson
Confidential – for internal use only
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