Marketing Plan

Market segmentation and positioning

Angelika Brix Bartosz Konior Stephan Richter

November 2006

Overview:

Market segmentation Consumer Markets Organizational Markets Evaluation of segments Target Market Positioning and Repositioning

(c) Brix, Konior, Richter

2

What is Market segmentation?

„...the identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategies.“¹

(c) Brix, Konior, Richter

¹ soucre: Jobber, p.210

3

What is Market segmentation?

„Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. ...to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment.“²

(c) Brix, Konior, Richter

² source: Wikipedia

4

Benefits from market segmentation

Target market selection

Differentiation

Market segmentation

Tailored marketing mix

Opportunities and threats

Source: Jobber, D. "Principles and practice of marketing"

(c) Brix, Konior, Richter

5

Benefits from market segmentation

Target market selection

Chosen segment of market Similar characteristics of customer Single marketing mix strategy

Tailored marketing mix

Grouping of customers Tailoring marketing mix package Implementation of the marketing concept

(c) Brix, Konior, Richter

6

Benefits from market segmentation

Differentiation Opportunities and threats

Rarely static markets => new segments emerge Chance of being the first Threat of faster competitors

Dividing into sub-segments Target more than one segment Differentiate its offering

(c) Brix, Konior, Richter

7

The process of market segmentation and target marketing

The disaggregated market The segmented market The target market

1 c1 c2 c4 c7 c5 c8 c3 c6 c1 c5 c7

2

3 c3 c1 c5 c7 c2 c6

Marketing mix targeted at segment 3

c3 c4 c8

c2 c6

c4 c8

The characteristics of individual customers are understood...