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Marketing Segmentation HOA380 Chapter 9 Chapter 8Market Segmentation, Targeting and Positioning Benefits of Segmentation Effective use of resources Gain a focus Create Value for a target market Positioning Steps in Market Segmentation, Targeting, and Positioning Step 1. Market SegmentationLevels of Market Segmentation Step 1. Market SegmentationGeographic Segmentation Step 1. Market SegmentationDemographic Segmentation Dividing the market into groups based on variables such as: Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality Step 1. Market SegmentationPsychographic Segmentation 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 Step 1. Market SegmentationSegments must respond differently to different marketing mix elements programs Requirements for effective segmentation Evaluating Market Segments Segment size and growth Segment structural attractiveness Company objectives and resources Step 2. Market TargetingMarket Coverage Strategies Choosing a market-coverage strategy Company resources Degree of product homogeneity Market homogeneity Competitors’ strategies Step 3: Positioning for Competitive Advantage Product’s Position - the way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products. Marketers must: Plan positions to give their products the greatest advantage in selected target markets Positioning Strategies Positioning by specific product attributes Positioning by benefits Positioning for user category Positioning for usage occasion Positioning against another competitors Positioning against another product class Step 1. Identifying Possible Competitive Advantages: Competitive Differentiation. Step 2. Selecting the Right Competi