Week 5 ndash 101304Week 5 ndash 101304

Market Segmentation Market Segmentation targeting and Positioning targeting and Positioning

for Competitive Advantagefor Competitive Advantage

On Linehttpwwwsnipitscomhttpwwwcartoon-cutscomhttpwwwkidscutscom

On Linehttpwwwsnipitscomhttpwwwcartoon-cutscomhttpwwwkidscutscom

A Market is

(1) people or organizations with

(2) needs or wants and with

(3) the ability and

(4) the willingness to buy

A group of people that lacks any one of these characteristics is not a market

Steps in Market Segmentation Targeting and Positioning

Market Segmentation

1 Identify bases for segmenting the market2 Develop segment profiles

Market Segmentation

1 Identify bases for segmenting the market2 Develop segment profiles

Market Targeting3 Develop measure of segment attractiveness4 Select target segments

Market Targeting3 Develop measure of segment attractiveness4 Select target segments

Market positioning5 Develop positioning for target segments6 Develop a marketing mix for each segment

Market positioning5 Develop positioning for target segments6 Develop a marketing mix for each segment

Definition Market Segmentation

Dividing a market into distinct groups with distinct needs characteristics

or behavior who might require separate products or marketing

mixes

The Importance of Market Segmentation

Markets have a variety of product needs and preferences

Marketers can better define customer needs

Decision makers can define objectives and allocate resources more accurately

Segmentation Bases

Characteristics of individuals groups

or organizations used

to divide a total market

into segments

(variables)

The Concept of Market Segmentation

bull Size purchasing power profiles of segments can be measured

bull Segments can be effectively reached and served

bull Segments are large or profitable enough to serve

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentiableDifferentiable

ActionableActionable

bull Segments must respond differently to different marketing mix elements amp programsbull Effective programs can be designed to attract and serve the segments

Step 1 Market SegmentationRequirements for Effective Segmentation

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

Steps in Market Segmentation Targeting and Positioning

Market Segmentation

1 Identify bases for segmenting the market2 Develop segment profiles

Market Segmentation

1 Identify bases for segmenting the market2 Develop segment profiles

Market Targeting3 Develop measure of segment attractiveness4 Select target segments

Market Targeting3 Develop measure of segment attractiveness4 Select target segments

Market positioning5 Develop positioning for target segments6 Develop a marketing mix for each segment

Market positioning5 Develop positioning for target segments6 Develop a marketing mix for each segment

Definition Market Segmentation

Dividing a market into distinct groups with distinct needs characteristics

or behavior who might require separate products or marketing

mixes

The Importance of Market Segmentation

Markets have a variety of product needs and preferences

Marketers can better define customer needs

Decision makers can define objectives and allocate resources more accurately

Segmentation Bases

Characteristics of individuals groups

or organizations used

to divide a total market

into segments

(variables)

The Concept of Market Segmentation

bull Size purchasing power profiles of segments can be measured

bull Segments can be effectively reached and served

bull Segments are large or profitable enough to serve

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentiableDifferentiable

ActionableActionable

bull Segments must respond differently to different marketing mix elements amp programsbull Effective programs can be designed to attract and serve the segments

Step 1 Market SegmentationRequirements for Effective Segmentation

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

Definition Market Segmentation

Dividing a market into distinct groups with distinct needs characteristics

or behavior who might require separate products or marketing

mixes

The Importance of Market Segmentation

Markets have a variety of product needs and preferences

Marketers can better define customer needs

Decision makers can define objectives and allocate resources more accurately

Segmentation Bases

Characteristics of individuals groups

or organizations used

to divide a total market

into segments

(variables)

The Concept of Market Segmentation

bull Size purchasing power profiles of segments can be measured

bull Segments can be effectively reached and served

bull Segments are large or profitable enough to serve

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentiableDifferentiable

ActionableActionable

bull Segments must respond differently to different marketing mix elements amp programsbull Effective programs can be designed to attract and serve the segments

Step 1 Market SegmentationRequirements for Effective Segmentation

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

The Importance of Market Segmentation

Markets have a variety of product needs and preferences

Marketers can better define customer needs

Decision makers can define objectives and allocate resources more accurately

Segmentation Bases

Characteristics of individuals groups

or organizations used

to divide a total market

into segments

(variables)

The Concept of Market Segmentation

bull Size purchasing power profiles of segments can be measured

bull Segments can be effectively reached and served

bull Segments are large or profitable enough to serve

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentiableDifferentiable

ActionableActionable

bull Segments must respond differently to different marketing mix elements amp programsbull Effective programs can be designed to attract and serve the segments

Step 1 Market SegmentationRequirements for Effective Segmentation

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

Segmentation Bases

Characteristics of individuals groups

or organizations used

to divide a total market

into segments

(variables)

The Concept of Market Segmentation

bull Size purchasing power profiles of segments can be measured

bull Segments can be effectively reached and served

bull Segments are large or profitable enough to serve

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentiableDifferentiable

ActionableActionable

bull Segments must respond differently to different marketing mix elements amp programsbull Effective programs can be designed to attract and serve the segments

Step 1 Market SegmentationRequirements for Effective Segmentation

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

The Concept of Market Segmentation

bull Size purchasing power profiles of segments can be measured

bull Segments can be effectively reached and served

bull Segments are large or profitable enough to serve

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentiableDifferentiable

ActionableActionable

bull Segments must respond differently to different marketing mix elements amp programsbull Effective programs can be designed to attract and serve the segments

Step 1 Market SegmentationRequirements for Effective Segmentation

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

bull Size purchasing power profiles of segments can be measured

bull Segments can be effectively reached and served

bull Segments are large or profitable enough to serve

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentiableDifferentiable

ActionableActionable

bull Segments must respond differently to different marketing mix elements amp programsbull Effective programs can be designed to attract and serve the segments

Step 1 Market SegmentationRequirements for Effective Segmentation

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

Density or Climate

City or Metro Size

World Region or Country

Geographic Segmentation

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

Market SegmentationDemographic

Dividing the market into groups based on variables such as Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality

This video features an executive from Levi-Strauss speaking the necessity of segmentation to meet the needs of customers in all age groups

C lick pic ture to pl ay

Cl ick to return

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

Bases for Psychographic Segmentation

PsychographicPsychographicSegmentationSegmentation

PsychographicPsychographicSegmentationSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

On Linehttpwwwmarthastewartcomhttpwwwgoodhousekeepingcom

Taxonomy of Porsche Buyers

Multi-bases Segmentation

Claritas

Multi-bases Segmentation

Claritas

Step 1 Market SegmentationBehavioral Segmentation

Dividing the market into groups based on variables such as Occasions Benefits User status Usage rate Loyalty status Readiness stage Attitude toward

product

Benefit Segmentation of the Snack-Food Market

Segmenting International Markets

Factors Used to Segment

International Markets

Geographic Location

EconomicFactors

Political and Legal Factors

Cultural Factors

Step 2 Market TargetingEvaluating Market Segments

Segment Size and Growth Analyze current sales growth rates and

expected profitability for various segmentsSegment Structural Attractiveness

Consider effects of competitors availability of substitute products and the power of buyers amp suppliers

Company Objectives and Resources Company skills amp resources needed to

succeed in that segment(s) Look for Competitive Advantages

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

CompanyMarketing Mix 2

CompanyMarketing Mix 2

CompanyMarketing Mix 3

CompanyMarketing Mix 3

MarketMarket

A Undifferentiated Marketing

B Differentiated Marketing

C Concentrated Marketing

Step 2 Market TargetingMarket Coverage Strategies

Undifferentiated Targeting Strategy

AdvantagesAdvantages Potential savings on

production and marketing costs

DisadvantagesDisadvantages Unimaginative product

offerings Company more

susceptible to competition

AdvantagesAdvantages Greater financial success Economies of scale

DisadvantagesDisadvantages High costs Cannibalization

Multisegment Targeting Strategy

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Benefit Segmentation of the Snack-Food Market

Segmenting International Markets

Factors Used to Segment

International Markets

Geographic Location

EconomicFactors

Political and Legal Factors

Cultural Factors

Step 2 Market TargetingEvaluating Market Segments

Segment Size and Growth Analyze current sales growth rates and

expected profitability for various segmentsSegment Structural Attractiveness

Consider effects of competitors availability of substitute products and the power of buyers amp suppliers

Company Objectives and Resources Company skills amp resources needed to

succeed in that segment(s) Look for Competitive Advantages

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

CompanyMarketing Mix 2

CompanyMarketing Mix 2

CompanyMarketing Mix 3

CompanyMarketing Mix 3

MarketMarket

A Undifferentiated Marketing

B Differentiated Marketing

C Concentrated Marketing

Step 2 Market TargetingMarket Coverage Strategies

Undifferentiated Targeting Strategy

AdvantagesAdvantages Potential savings on

production and marketing costs

DisadvantagesDisadvantages Unimaginative product

offerings Company more

susceptible to competition

AdvantagesAdvantages Greater financial success Economies of scale

DisadvantagesDisadvantages High costs Cannibalization

Multisegment Targeting Strategy

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Segmenting International Markets

Factors Used to Segment

International Markets

Geographic Location

EconomicFactors

Political and Legal Factors

Cultural Factors

Step 2 Market TargetingEvaluating Market Segments

Segment Size and Growth Analyze current sales growth rates and

expected profitability for various segmentsSegment Structural Attractiveness

Consider effects of competitors availability of substitute products and the power of buyers amp suppliers

Company Objectives and Resources Company skills amp resources needed to

succeed in that segment(s) Look for Competitive Advantages

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

CompanyMarketing Mix 2

CompanyMarketing Mix 2

CompanyMarketing Mix 3

CompanyMarketing Mix 3

MarketMarket

A Undifferentiated Marketing

B Differentiated Marketing

C Concentrated Marketing

Step 2 Market TargetingMarket Coverage Strategies

Undifferentiated Targeting Strategy

AdvantagesAdvantages Potential savings on

production and marketing costs

DisadvantagesDisadvantages Unimaginative product

offerings Company more

susceptible to competition

AdvantagesAdvantages Greater financial success Economies of scale

DisadvantagesDisadvantages High costs Cannibalization

Multisegment Targeting Strategy

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Step 2 Market TargetingEvaluating Market Segments

Segment Size and Growth Analyze current sales growth rates and

expected profitability for various segmentsSegment Structural Attractiveness

Consider effects of competitors availability of substitute products and the power of buyers amp suppliers

Company Objectives and Resources Company skills amp resources needed to

succeed in that segment(s) Look for Competitive Advantages

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

CompanyMarketing Mix 2

CompanyMarketing Mix 2

CompanyMarketing Mix 3

CompanyMarketing Mix 3

MarketMarket

A Undifferentiated Marketing

B Differentiated Marketing

C Concentrated Marketing

Step 2 Market TargetingMarket Coverage Strategies

Undifferentiated Targeting Strategy

AdvantagesAdvantages Potential savings on

production and marketing costs

DisadvantagesDisadvantages Unimaginative product

offerings Company more

susceptible to competition

AdvantagesAdvantages Greater financial success Economies of scale

DisadvantagesDisadvantages High costs Cannibalization

Multisegment Targeting Strategy

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

CompanyMarketing Mix 2

CompanyMarketing Mix 2

CompanyMarketing Mix 3

CompanyMarketing Mix 3

MarketMarket

A Undifferentiated Marketing

B Differentiated Marketing

C Concentrated Marketing

Step 2 Market TargetingMarket Coverage Strategies

Undifferentiated Targeting Strategy

AdvantagesAdvantages Potential savings on

production and marketing costs

DisadvantagesDisadvantages Unimaginative product

offerings Company more

susceptible to competition

AdvantagesAdvantages Greater financial success Economies of scale

DisadvantagesDisadvantages High costs Cannibalization

Multisegment Targeting Strategy

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Undifferentiated Targeting Strategy

AdvantagesAdvantages Potential savings on

production and marketing costs

DisadvantagesDisadvantages Unimaginative product

offerings Company more

susceptible to competition

AdvantagesAdvantages Greater financial success Economies of scale

DisadvantagesDisadvantages High costs Cannibalization

Multisegment Targeting Strategy

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

AdvantagesAdvantages Greater financial success Economies of scale

DisadvantagesDisadvantages High costs Cannibalization

Multisegment Targeting Strategy

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Cannibalization

Situation that occurs when sales of a new product

cut into sales of a firmrsquos existing products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Concentrated Targeting Strategy

AdvantagesAdvantages Concentration of resources Meets narrowly defined

segment Small firms can compete Strong positioning

DisadvantagesDisadvantages Segments too small or

changing Large competitors may

market to niche segment

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Socially Responsible Target Marketing

Smart targeting helps companies and consumers alike

Target marketing sometimes generates controversy and concern Disadvantaged and vulnerable can be

targeted Cigarette beer and fast-food marketers

have received criticism in the past Internet has come under attack because of

the loose boundaries and lack of control in marketing practices

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Step 3 Choosing a Positioning Strategy

Productrsquos Position - the way the product is perceived by consumers on important attributes

Marketers must Plan positions to give their products the

greatest advantage in selected target markets

Design marketing mixes to create these planned positions

Positioning

On what doesVolvo position

Wha t a bout

bullSaabbullLe xus

C li ck or pre ss spa cebar to ret urn

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Step 3 Choosing a Positioning Strategy

Step 1 Identifying Possible

Competitive Advantages

Step 2 Selecting the Right

Competitive Advantage

Step 3 Communicating and

Delivering the Chosen Position

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

CriteriaFor DeterminingWhich Difference

To Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Choosing the Right CompetitiveAdvantage

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Communicating and Delivering the Chosen Position

Company must take strong steps to deliver and communicate the desired position to target consumers

All the companyrsquos marketing mix must support the positioning strategy

Positioning strategy must be monitored and adapted over time to match changes

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Positioning of Procter amp Gamble Detergents

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Perceptual Mapping

A means of displaying or graphing in two or more dimensions the location of products brands or groups of products in

customersrsquo minds

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products

Perceptual Map and Positioning Strategy for Levi Strauss Products

• Week 5 ndash 101304
• A Market is
• Steps in Market Segmentation Targeting and Positioning
• Definition Market Segmentation
• The Importance of Market Segmentation
• Segmentation Bases
• The Concept of Market Segmentation
• Step 1 Market Segmentation Requirements for Effective Segmentation
• Geographic Segmentation
• Market Segmentation Demographic
• Bases for Psychographic Segmentation
• Taxonomy of Porsche Buyers
• Multi-bases Segmentation
• Step 1 Market Segmentation Behavioral Segmentation
• Benefit Segmentation of the Snack-Food Market
• Segmenting International Markets
• Step 2 Market Targeting Evaluating Market Segments
• Step 2 Market Targeting Market Coverage Strategies
• Undifferentiated Targeting Strategy
• Multisegment Targeting Strategy
• Cannibalization
• Concentrated Targeting Strategy
• Socially Responsible Target Marketing
• Step 3 Choosing a Positioning Strategy
• Step 3 Choosing a Positioning Strategy
• Choosing the Right Competitive Advantage
• Communicating and Delivering the Chosen Position
• Positioning of Procter amp Gamble Detergents
• Perceptual Mapping
• Perceptual Map and Positioning Strategy for Levi Strauss Products