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Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
Chapter 2 Learning Objectives
2.1 To understand the interrelationship among market
segmentation, targeting, and positioning and how to select the
best target markets.
2.2 To understand the bases used to segment consumers,
including demographics, psychographics, product benefits
sought, and product usage-related factors.
2.3 To understand behavioral targeting and its key role in today’s
marketing.
2.4 To understand how to position, differentiate, and reposition
products.
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Learning Objective 2.1
2.1 To understand the interrelationship among
market segmentation, targeting, and
positioning and how to select the best target
markets.
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How does Qantas position its offering for different
market segments?
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To be an effective target…
A market segment must
be:
•Identifiable
•Sizeable
•Stable and growing
•Reachable
•Congruent with the
marketer’s objectives
and resources
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Segmentation: An Application
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Learning Objective 2.2
2.2 To understand the bases used to segment
consumers, including demographics,
psychographics, product benefits sought, and
product usage-related factors.
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Two Types of Shared Characteristics
• Behavioral data
– Consumer-intrinsic
– Consumption-based
• Cognitive factors
– Consumer-intrinsic
– Consumption-specific
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Demographic Segmentation
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Who is the target of this ad?
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Geodemographic Segmentation
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Segmenting Green Consumers
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Personality Traits
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Psychographics
Consumers’ lifestyles, which
include consumers’ activities,
interests, and opinions
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Psychographic Segmentation
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Discussion Question
Which segmentation
bases could be used to
describe the target
audience for the ad?
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VALSTM
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Provide an example: how could this information be
used?
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Benefit Segmentation
• Benefits sought
represent consumer
needs
• Important for
positioning
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What segmentation base is used?
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Learning Objective 2.3
2.3 To understand behavioral targeting and its key
role in today’s marketing.
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Behavioral Targeting
sending consumers personalized and prompt
offers and promotional 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
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Tracking Online Navigation Includes:
• Websites visited
• Engagement on sites
• Lifestyles and personalities
• Purchases, almost purchases, returns,
exchanges
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Predictive Analytics
Measures that predict consumers’
future purchases on the bases of past
buying information and other data,
and also evaluate the impact of
personalized promotions stemming
from the predictions.
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Application: Target
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Learning Objective 2.4
2.4 To understand how to position,
differentiate, and reposition products.
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Positioning
The process by which a company
creates a distinct image and identity
for its products, services, or brands in
consumers’ minds.
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Positioning Process
1. Define the market, buyers and competition.
2. Identify key attributes and research consumers’
perceptions
3. Research consumers’ perceptions on competing
offerings.
4. Determine preferred combination of attributes.
5. Develop positioning concept that communicates
attributes as benefits.
6. Create a positioning statement and use it to
communicate with the target audiences.
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Positioning Application
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Umbrella Positioning
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Other Types of Positioning
• Premier positioning
• Positioning against the competition
• Key attribute
• Un-owned positioning
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Repositioning
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Perceptual Map
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What type of positioning is used?
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