Week-3

Welcome to My Class
Chapter 3:Segmentation, Targeting and Positioning
Course Title: Consumer Behavior

Course Code: MKT-424
Md. Alal Uddin
MBA (Major in Marketing), RU
Lecturer, Department of Marketing
Faculty of Business Administration, Islamic University,
Kushtia, Bangladesh
Chapter: Story
• To succeed in today’s highly fragmented marketplace, firms have to isolate
key market segments and reach these segments with maximum possible
impact.
• Examples include innovative programs such as Facebook’s “Instant
Personalization” and Kimberly-Clark’s “parentstages.
• Is a philosophy that presumes consumers are uniform and that broad-
appeal products and marketing programs suffice ”
• In 1908, Henry Ford’s mass-market strategy involved using economies of
scale to produce the Model-T, a standardized, low-priced automobile.
• His basic assumption: Customers have homogeneous preferences
• Other examples of a mass-market strategy include early Coca-Cola and the
Bell Telephone System
• Consumers that comprise the marketplace are heterogeneous, consisting
mostly of smaller niches of people, each with unique demographic and
lifestyle characteristics.
• Consequently, marketers employ strategies to match products to markets
via separate marketing mixes.
1-2
Guess?????
• Dear Audience, Could you please recall
what is market segmentation and
market Segment???
1-3
What is market Segmentation?
Market segmentation is the process

that companies use to divide large
heterogeneous markets into small
markets that can be reached more
efficiently and effectively with
products and services that match
their unique needs
1-4
No Market Segmentation
Segmented by Gender
Segmented by Age
Bases of Segmenting Consumer Market
Demographic Segmentation Geographic Segmentation

• Age • World region or Country
• Gender • Country Region
• Family size • City or metro size
• Family life-cycle stage • Density
• Income • Climate
• Occupation
• Religion Behavioral
• Race • Occasions
• Generation • Benefits
• Nationality • User status
• User rates
Psychographic Segmentation • Loyalty status
• Sociality • Readiness stage
• Life-style • Attitude toward product
• personality
New Segment Arises???
• Geo-Demographics??PRIZMS 66 Segments
(Nielsen Company by ); Claritas Inc.
• Based on Socio economic ranking-Consumer
Behavior- Media behavior-Neighborhood data
for income and education, home value so
on….
• Geographic segmentation is based on (Where persons live and their
lifestyles-consumptions habits-urban vs rural)
• Lifebuoy-killing germs
• Surf Excel- Save water
1-10
Copyright © 2006 Pearson Education
1-11
Canada Inc.
Green Consumers
One Study Find out three Segments:
• Environmental Activists: ( Health & Sustainability)
• Organic eaters (Health but not sustaining Planet)
• Economizers (Eco to Save money)
• Another Study also find 4 segments:
• True Greens (Environment friendly behavior, advice friends)
• Donor Greens (Purchase normal product but feel guilty, they
donate to the society)
• Learning Greens
• Non- Greens (don’t care about wildlife or environmental
causes)
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VALS Framework for Segmentation
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Copyright © 2006 Pearson Education
1-14
Canada Inc.
Market Segmenting/ Targeting Process
Requirements / Guidelines for Effective Segmentation/ Targeting Criteria
• To be useful, market segments must be:
Stable and
Identifiable
Growing
Sizeable Differentiable
Reachable Action
Market Targeting
Selecting Target Market Segments
• Target market consists of a set of buyers who

share common needs or characteristics that
the company decides to serve
Market Targeting
Evaluating Market Segments
.
• Segment size and growth

• Segment structural attractiveness
• Company objectives and resources
Market Targeting
Target Marketing Strategies
Market Targeting
Choosing a Target Market
Depends on:
• Company resources
• Product variability
• Product life-cycle stage
• Market variability
• Competitor’s marketing strategies
Market Targeting
Socially Responsible Target Marketing
• Benefits customers with

specific needs
• Concern for vulnerable
segments
• Children
– Alcohol
– Cigarettes
– Internet abuses
Differentiation and Positioning
Product position is the way

the product is defined by
consumers on important
attributes—the place the
product occupies in
consumers’ minds
relative to competing
products
– Perceptions
– Impressions
– Feelings
Positioning maps
show consumer
perceptions of
their brands
versus competing
products on
important buying
dimensions
Choosing a Differentiation and Positioning Strategy
• Identifying a set of possible competitive

advantages to build a position
• Choosing the right competitive advantages
• Selecting an overall positioning strategy
• Developing a positioning statement
Identifying Possible Value Differences and
Competitive Advantages
Competitive advantage is an advantage over

competitors gained by offering consumers
greater value, either through lower prices
or by providing more benefits that justify
higher prices
Choosing a Differentiation and Positioning Strategy
Identifying a set of possible competitive

advantages to build a position by
providing superior value from:
Product differentiation
Service differentiation
Channel differentiation
People differentiation
Image differentiation
Choosing the Right Competitive Advantage
Difference to promote should be:
Important Distinctive Superior
Communicable Preemptive Affordable
Profitable
Selecting an Overall Positioning Strategy
Value proposition
is the full mix of
benefits upon
which a brand is
positioned
What is Positioning Statement?
• Example: Mountain Dew – To young, active
soft drink consumers who have little time for
sleep, Mountain Dew is the soft drink that
gives you more energy than any other brand
because it has the highest level of caffeine.
With Mountain Dew, you can stay alert and
keep going even when you haven’t been able
to get a good night’s sleep.
-
• A positioning statement needs to answer 5
questions about your offering.
• What Do You Sell?
• Who Is Your Target Customer?
• What Is The Customers Need?
• How Does Your Product Satisfy This Need?
• How Is Your Product Different From Others?
Developing a Positioning Statement
• To (target segment and need) our (brand) is
(concept) that (point of difference)
Web link
Communication and Delivering the
Chosen Position
Choosing the
positioning is
often easier than
implementing the
position.
Behavioral Targeting
• BT consisting of sending consumers

personalized and prompt offers and
messages designed to reach the right
consumers and deliver to them highly
relevant messages at the right time and more
accurately than when using conventional
segmentation techniques.
Ways to Behavioral Targeting
• Tracking online navigations

• Geographic location and mobile targeting
• Purchase behavior
• The information “Arms Race”
Positioning Process
• Pls see the book…….
• Umbrella positioning, Premier Position and

Reposition
Perceptual Mapping
• Perceptual Mapping is constructing a map like
diagram representing consumers’ perception
of competing brands along relevant product
attributes .
• PM shows marketers How consumer perceive
their brands relative to competitors
• Altering undesirable consumer perceptions
• GAPs

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Welcome to My Class

Chapter 3:Segmentation, Targeting and Positioning

Course Title: Consumer Behavior

Market segmentation is the process

Demographic Segmentation Geographic Segmentation

• To be useful, market segments must be:

• Target market consists of a set of buyers who

• Segment size and growth

• Benefits customers with

Product position is the way

• Identifying a set of possible competitive

Competitive advantage is an advantage over

Identifying a set of possible competitive

Difference to promote should be:

Important Distinctive Superior

Communicable Preemptive Affordable

• BT consisting of sending consumers

• Tracking online navigations

• Pls see the book…….

• Umbrella positioning, Premier Position and

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