MKTG 6130 Customer-Driven Marketing Management Dr.

Wes Martz

Market Segmentation, Target Market Selection, and Positioning

CLASS 3 01.30.12

Market Segmentation
2

The division of the total market into smaller, relatively homogeneous groups Two major types of segmentation
Benefits sought by customers Observable characteristics of customers

2012 Wes Martz.

MKTG 6130 Customer-Driven Marketing Management Dr. Wes Martz

Benefits Sought: Pain Relievers

3

Gentleness

Effectiveness

2012 Wes Martz.

Basic Steps To Segment Markets

4

1. 2. 3.

Understand the benefits that customers seek. Segment and develop prototypical customer profiles. Find observable variables to discriminate among the benefits segments to identify membership in specific segments.

2012 Wes Martz.

MKTG 6130 Customer-Driven Marketing Management Dr. Wes Martz

Rediscovering Market Segmentation

5 N O N - D E M O G R A P H I C S E G M E N TAT I O N

2012 Wes Martz.

Different Segmentations for Different Purposes

6

2012 Wes Martz.

MKTG 6130 Customer-Driven Marketing Management Dr. Wes Martz

The Gravity Decision Spectrum, Yankelovich & Meer (2006)

Target Market Selection

8

2012 Wes Martz.

MKTG 6130 Customer-Driven Marketing Management Dr. Wes Martz

Target Market Selection

9

Evaluating each market segments attractiveness Selecting one or more segments to enter Comparing the firms capabilities and competitors capabilities to determine ability to succeed The objective is to maximize the firms profit

2012 Wes Martz.

Target Market Selection: Pain Relievers

10

Gentleness

Acetiminophen e.g., Tylenol

Effectiveness

Aspirin e.g., Bayer

2012 Wes Martz.

MKTG 6130 Customer-Driven Marketing Management Dr. Wes Martz

Positioning
11

T h e ke y t o g r e a t p o s i t i o n i n g b e g i n s w i t h a clear understanding of the needs, problems, and pains of your prime targets.

2012 Wes Martz.

Positioning
12

Unique selling proposition for the product Clearly articulates the benefits the product fulfills Differentiates the product from competitive offerings
Vertically differentiated = quality focused, willingness to pay Horizontally differentiated = independent of quality, consumer tastes

2012 Wes Martz.