Identify and profile distinct group of buyers who might require separate products and marketing mixes(Segmenting)

Select one or more market segments to enter(Targeting)

Establish and communicate the products’ key distinctive benefits in the market(Positioning)

Segment MarketingNiche marketingLocal Marketing Individual Marketing

GeographicNations, states, zones, cities, countries

DemographicAge and family life cycle stage, family size, gender, income, occupation, education, religion, nationality, generation social class,

PsychographicLifestyle, personality, Values

BehavioralOccasions, benefits, User status, Usage rate, User status, Buyer readiness stage, Attitude

• Benefits which the people are seeking in consuming a given product are basic reasons for existence of a true market segment

• Benefits sought by consumers determine their behavior much more accurately than do demographic characteristics and volume of consumption

It is easier to take advantage of existing market segments than to create new ones.

No brand can appeal to all target groups.Each brand should target one benefit group.

The company’s brand can sometimes cannibalize each other but need not necessariily do so.

MeasurableSubstantialAccessibleDifferentiableAppropriateStable

Evaluating Market Segments Selecting Market Segments

Single Segment ConcentrationSelective SpecializationProduct SpecializationMarket SpecializationFull Market Coverage

Undifferentiated Marketing

Differentiated Marketing

Product Differentiation Features Performance quality Conformance quality Durability Reliability Durability Reparability Style Design

Ordering EaseDelivery InstallationCustomer TrainingCustomer ConsultingMaintenance & repairMiscellaneous

CompetenceCourtesyCredibilityReliabilityResponsivenessCommunication

CoverageExpertisePerformance

SymbolsWritten & audio visual MediaAtmosphereEvents

Act of designing the company’s offering and image to occupy distinctive place in target market mind.

Identifying the organization's or brand’s competitive advantages

Deciding on those that are to be emphasized

Implementing the positioning concept

Strengthen own current position in consumer’s mind.

Grab an unoccupied position.Deposition or reposition the

competition.Exclusive club strategy.

How many differences to promote?

Under positioningOver positioningConfused positioningDoubtful positioning