Coke Zero
Why a new
Diet Soda?
pom3-1
Segmentation, Targeting, Positioning
Process
Pom3 - 2
Evaluate Segment Attractiveness
pom3-3
Identifiable
•
•
•
Who is in their market?
Are the segments unique?
Does each segment require a unique marketing mix?
pom3-4
Substantial

Too small and it is insignificant

Too big and it might need it’s own store
pom3-5
Reachable
Know the product
exists
Understand what it
can do
Recognize how to
buy
pom3-6
Responsive
Customers must:
React positively to firm’s
offering
Move toward the firms
products/services
Accept the firm’s value
proposition
pom3-7
Profitable (Lawn Service)
Homeowners
75,000
1%
750
Businesses
1,000
20%
200
Purchase price
Frequency of purchase
Sales per adoption
$100
12 times
1,200
$500
20 times
10,000
Profit margin percentage
Margin per adoption
Margin times adoption
60%
$720
$540,000
80%
$8,000
$1,600,000
Fixed costs
$400,000
1,000,000
Segment profit
$140,000
$600,000
Segment size
Adoption percentage
Adoptions
Types of Segmentation
Geographic – Where they live
Demographic – Objective personal characteristics
Psychographic – how occupy time and what underlying
reasons determine choices
Benefits – Solutions (benefits) sought from products
Geodemographic – combination of geographic, demographic
and lifestyle characteristics
Loyalty – Whether buy exclusively from firm
McDonald's Segmentation, Targeting, and Positioning
Clip 8 Library
VALS Framework
VALS Website
pom3-10
Segmentation Strategy
pom3-11
Step 5: Develop Positioning Strategy
Circles for a Successful Value
Proposition
No Overlap with Competition
Circles for a Successful Value
Proposition
Overlap with Competition
pom3-12
Perceptual Maps
pom3-13
Repositioning
Disposal
freshener
Fridge
freshener
Tooth
cleaner
Stain
remover
Baking
Cleaner
Volcano
maker
pom3-14