FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Segmentation,
Targeting and
Positioning

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Introduction
All marketing communications should be:
1. Directed to a particular target market,
2. Clearly positioned
3. Created to achieve a specific objective, and
4. Undertaken to accomplish the objective within budget
constraint

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

The market segmentation process and targeting

audiences can be considered the starting points for all
marcom (marketing communication) decisions.
Segmentation and targeting allow marketing
communicators to deliver their messages precisely and
prevent wasted coverage on people falling outside the
targeted market.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Four [4] sets of segmentation bases or characteristics

that singularly or combination influence what people
consume and how they respond to marketing
communications;
Behavioral segmentation
Psychographics
Demographics
Geodemographics

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Behavioral segmentation (behavior-graphics)

represents information about the audiences in terms of
past purchase behavior or online search activity in a
particular products category or set of related category.
Psychographics captures aspects of consumers
psychological makeup and lifestyles including their
attitudes, values and motivations.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Demographics reflect measurable population

characteristics such as age, income and ethnicity.
Geodemographics is based on demographics
characteristics of consumers who reside within
geographic clusters such as ZIP code areas and
neighborhoods.

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Segments and Market Segmentation Process

A market segment is a group of customers who share a
similar set of needs and wants.
The process of market segmentation is the act of
dividing a market into distinct groups of customers who
might require separate products and/or marketing mix.
The segmentation process can help with efficiently
directing and accounting for marcom resources.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Major steps in the market segmentation

process
1.

Market segment
a.
Identify bases (e.g., behavior,
demographics) to segment the market
b. Develop profiles of resulting segments.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Major steps in the market segmentation

process
Market targeting
a. Develop measures of segment attractiveness
b. Select the target segment(s)
3. Market positioning
a. Develop positioning for each target segment
b. Develop marketing mix for each target segment
2.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Major steps in the market segmentation

process
2.

Market positioning
a. Develop positioning for each target segment
b. Develop marketing mix for each target segment

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Segmentation Bases: Behavioral Segmentation

The essence of behavior segmentation: i.e., this form
of segmentation is based on how people behave (with
respect to a product) rather than in terms of their
attitudes and lifestyles (psychographics); their age,
income or ethnicity (demographics); or where they live
(geodemographics).

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Segmentation Bases: Behavioral Segmentation

Online Behavioral Targeting
The essence of online behavioral targeting is directing
online advertisements to just those individuals who
most likely are interested as indicated by their online
site-selection behavior in making a purchase decision
for a particular product category.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Psychographic Segmentation
Psychographics refers to information about consumers
attitudes, values, motivations and lifestyles as they
relate to buying behavior in a particular product
category.

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Psychographic Segmentation
General Purpose Psychographic Profiles
In addition to psychographic studies that are customized to
a clients particular needs, brand managers can purchase
off-the-shelf psychographic data from services that
develop psychographic profiles of people independently of
any particular product and services..

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Psychographic Segmentation
One of the best known of these is the Futures Company
MindBase psychographic segmentation scheme. MidBase
consists of 8 general segments and 32 specific sub segments.
Direct marketers and other communicators can use these
profiles for designing creative advertising campaigns that
best match the attitudes, values and lifestyles of their
target audiences.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Psychographic Segmentation
The 8 VALS Segments
Innovators are successful, sophisticated, take-charge
people with high self-esteem. They have abundant
resources, are very active consumers, and have cultivated
tastes for upscale, niche products and services.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Psychographic Segmentation
The 8 VALS Segments
Thinkers are motivated by ideals. They are mature, satisfied,
comfortable and reflective people who value order, knowledge and
responsibility. They tend to be well educated and actively seek out
information in the decision-making process. Thinkers are
conservative, practical consumers; they look for durability,
functionality and value in the products they buy.

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Psychographic Segmentation
The 8 VALS Segments
Believers, like Thinkers, are motivated by ideals, yet have fewer
resources. As consumers, Believers are predictable; they choose
familiar products and established brands. They favor Malaysian
products and are generally loyal customers.

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Psychographic Segmentation
The 8 VALS Segments
Achievers, who are motivated by the desire for achievement, have
goal-oriented lifestyles and a deep commitment to career and
family. Achievers live conventional lives, are politically
conservative and respect authority and status quo. Image is
important to Achievers; they favor established, prestige products
and services that demonstrate success to their peers and value
time-saving devices.

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Psychographic Segmentation
The 8 VALS Segments
Strivers are trendy and fun loving. They are concerned about the
opinions and approval of others. Money defines success for
Strivers, who dont have enough of it to meet their desires. They
favor stylish products that emulate the purchases of people with
greater material wealth. Many see themselves as having a job
rather than a career and a lack of skills and focus often moving
ahead. As consumers, they are as impulsive as their financial
circumstance will allow.

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Psychographic Segmentation
The 8 VALS Segments
Experiencers are motivated by self-expression. As young,
enthusiastic and impulsive consumers, Experiencers quickly become
enthusiastic about new possibilities but are equally quick to cool.
They seek variety and excitement. Experiencers are avid consumers
and spend a comparatively high proportion of their income on
fashion, entertainment and socializing. They want to look good and
have cool stuff.

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Psychographic Segmentation
The 8 VALS Segments
Makers, like Experiencers, are motivated by self-expression building a house,
raising children, fixing a car or canning vegetables. Makers are practical people
who have constructive skills and value self-sufficiency. They live within a
traditional context of family, practical work and physical recreation and have
little interest in what lies outside that context. Makers are unimpressed by
material possessions other the those with practical or functional purpose.
Because they prefer value to luxury, they buy basic products.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Psychographic Segmentation
The 8 VALS Segments
Survivors live narrowly focused lives. With few resources with which
to cope, they often believe that the world is changing too quickly.
They are comfortable with the familiar and are primarily concerned
with safety and security. They are loyal to favorite brands, especially
if they can purchase them at a discount.

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Geodemographic Segmentation
The word geodemographic is a conjunction of geography and
demography, which aptly describes this form of segmentation. The
idea underlying geodemographic segmentation is that people who
reside in similar areas, such as neighborhoods or postal ZIP code
zones, also share demographic and lifestyle similarities anf general
market place behaviors.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Demographic Segmentation
Three major demographic aspects that have relevance for marcom
practitioners:
1.
The age structure of the population (e.g., children, Generations
X and Y, and baby boomers)
2.
The changing household composition (e.g., the increase in the
number of single-person household)
3.
Ethnic population developments

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Market Targeting
Five criteria for segment effectiveness (i.e., attractiveness) are:
1.
Measurable: the degree to which useful information exists on
the segment.
2.
Substantial: the degree to which the segment is large enough
and/or profitable to be worth attention.
3.
Accessible: the degree to which a firm can focus their marketing
efforts on the segment.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Market Targeting
4.

5.

Differentiable: the degree to which the segment is

distinguishable and will respond differently to changes in
marketing mix elements and programs.
Actionable: the degree to which the programs can be formulated
and implemented.

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Market Targeting
These target market strategies include:
1. Undifferentiated marketing in which overall marketing mix is
applied to the mass market.
2. Differentiated marketing, in which a separate marketing mix is
applied to each separate segment, or
3. Concentrated marketing, in which one overall marketing mix is
applied to one separate segment.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Market Positioning in Practice: The Fundamentals

Brand positioning is an essential preliminary activity to developing a
marcom program. The term positioning suggests two [2] interrelated
ideas. Firstly, brand positioning represents the key feature, benefit
or image that a brand stands for in the target audiences mind.
Second, the brands meaning in consumers memories stands in
comparison top what they know and think about competitive brands
in the product or service category (i.e., positioning against the
competition).

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Market Positioning in Practice: The

Fundamentals
A good positioning statement should satisfy two requirements: (1) It
should reflect a brands competitive advantage (vis--vis
competitive offerings in the same product category and (2) it should
motivated consumers to action.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

Attributes

Product-Related (e.g.,
color, Size, Design
Features)

Non-Product-Related
(e.g., Price, Packaging,
User and Usage
Imagery)

Type of Brand
AssociationsT
Benefits

BRAND
IMAGE

Functional
Favorability,
Strength and
Uniqueness of
Brand Association

Overall
Evaluation
(Attitude)

Symbolic
Experiential

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Benefit Positioning
Positioning with respect to brand benefits can be accomplished by
appealing to any of three [3] categories of basic consumer needs:
functional, symbolic or experiential.
Positioning Based on Functional Needs
Functional needs attempts to provide solutions to consumers current
consumption-related problems or potential problems by
communicating that the brand possesses specific benefits capable of
solving those problems.

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Benefit Positioning
Consumer goods marketers also regularly appeal to consumers needs
for convenience, safety, good health, cleanliness and so on, all of
which are functional needs that can be satisfied by brand benefits.
Positioning Based on Symbolic Needs
Positioning in term of symbolic needs attempts to associate brand
ownership with a desired group, role or self-image.

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Benefit Positioning
Positioning Based on Symbolic Needs
Appeals to symbolic needs include those directed at consumers desire
for self-enhancement, group membership, affiliation, altruism and
other abstract need states that involve aspects of consumption not
solved by practical product benefits.

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Benefit Positioning
Positioning Based on Experiential Needs
Consumers experiential needs represent their desires for products
that provide sensory pleasure, variety and in few product
circumstances, cognitive stimulation. Brands positioned towards
experiential needs are promoted as being out of the ordinary and high
in sensory value (looking elegant, feeling wonderful, tasting or
smelling great, sounding divine, being exhilarating and so on) or rich
in the potential for cognitive stimulation (exciting, challenging,
mentally entertaining and so on).

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Attribute Positioning
A brand can be positioned in terms of a particular attribute or
feature, provided that the attribute represent a competitive
advantage and can motivate customers to purchase that brand rather
than a competitive offering.
Product attributes can be distinguished as either product-related or
non-product-related.

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Attribute Positioning
Product-Related
Sleeker product design, superior materials, and more color options
are just few of the virtually endless attributes that can provide the
foundation for positioning a brand.

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Attribute Positioning
Non-Product-Related: Usage and User Imagery
A brand positioned according to the image associated with how it is used, its
usage imagery, depicts the brand in terms of specific and presumably unique,
usages that become associated with it.
Brand also can be positioned in terms of the kind of people who use them. This
user imagery thus becomes the brands hallmark; the brand and the people who
are portrayed as using it become virtually synonymous. Positioning a brand via
user imagery thus amounts to associating the brand with icon-like representations
of the kind of people who are portrayed in advertisements as typical users of the
brand.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

SUMMARY

Determining how a brands marcom efforts should be directed toward specific

groups of consumers based on behavioral, psychographic, demographic or
geodemographic considerations is the initial and most fundamental of all
marcom decisions.
Marketing communicators also segment customers using knowledge about their
activities, interests and opinions (or, collectively, their lifestyles) to better
understand what people want and how they are likely to respond to
advertising, direct mail and their forms of marketing communications.

FAKULTI KEMANUSIAAN, SENI DAN WARISAN

SUMMARY

The term psychographics describes this form of segmentation. Customized

studies are conducted to identify psychographic segment directly applicable to
the marketers product category and brand, but syndicated research systems
such as SBIs VALS system also provide useful information for making important
marcom decisions.
The VALS system classifies people into one of eight[8] groups based on a
combination of their self-orientation and resources.