Kotler, P. & Armstrong, G., 2006, Principles of Marketing, New Jersey: Pearson Education, Inc., Ch.7

MARKET SEGMENTATION, TARGETING & POSITIONING

THE STEPSMarket segmentation• Identify bases for segmenting the market• Develop segment profiles

Target marketing • Develop measure of segment attractiveness• Select target segments

Market positioning• Develop positioning for target segments• Develop a marketing mix for each segment

DEFINITIONSMarket segmentation is dividing a market

into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.

Target marketing is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Market positioning is the process of arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target consumers.

SEGMENTING CONSUMER MARKETSGEOGRAPHIC SEGMENTATION. Dividing a

market into different geographical units.DEMOGRAPHIC SEGMENTATION. Dividing

a market into groups based on demographic variables.

PSYCHOGRAPHIC SEGMENTATION. Dividing a market into based on social class, lifestyle, or personality characteristics.

BEHAVIORAL SEGMENTATION. Dividing a market into based on consumer knowledge, attitude, use, or response to a product.

VALS – Life Style ClassificationsVALS – Life Style Classifications

Thinkers Achievers Experiencers

StriversBelievers Makers

Principle

Oriented Status Oriented Action Oriented

Low Resources

Low innovationSurvivors

High innovationInnovatorsHigh Resources

VALUE & LIFE-STYLES (VALS) SURVIVORS – elderly, passive people who are

concerned about change. Loyal to their favorite brands.INNOVATORS – successful, sophisticated, active

people with high self-esteem. Purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.

EXPERIENCERS – young, enthusiastic, impulsive people who seek variety and excitement. Spend a comparatively high proportion of income on fashion, entertainment, and socializing.

MAKERS – practical, down-to-earth, self-sufficient people who like to work with their hands. Favor product with a practical or functional purpose.

VALUE & LIFE-STYLES (VALS)ACHIEVERS – successful goal-oriented people who

focus on career and family. Favor premium products that demonstrate success to their peers.

STRIVERS – trendy and fun-loving people who are resource-constrained. Favor stylish products that emulate the purchase of those with greater material wealth.

THINKERS – mature, satisfied, and reflective people who are motivated by ideals and value order, knowledge, and responsibility. Favor durability, functionality, and value in products.

BELIEVERS – conservative, conventional, and traditional people with concrete beliefs. Favor familiar products and are loyal to established brands.

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INDONESIAN CONSUMER MARKET SEGMENTS:

1. ESTABLISHED CONFIDENT (“ORANG ALIM”)

2. THE OPTIMISTIC FAMILY PERSON (IBU “PKK”)

3. THE CHANGE-EXPECTING LAD (‘ANAK NONGKRONG”)

4. CHEERFUL HUMANIST (“LEMBUT HATI”)

5. INTROVERT WALLFLOWER (“PASRAH”)

6. THE SAVVY CONQUEROR/CITY SLICKERS (“MAIN UNTUK MENANG”)

7. THE NETWORKING PLEASURE SEEKER (“GAUL-GLAM”)

8. THE SPONTANEOUS FUN-LOVING (“BINTANG PANGGUNG”)

(SUMBER: LOWE INDONESIA)

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INDONESIAN CONSUMER MARKET SEGMENTS: “ORANG ALIM” (ESTABLISHED CONFIDVENT)

Demografi: Umumnya laki-laki, urban, usia matang, SES tinggi dan berpendidikan tinggi.

Karakteristik:1. Ramah dan menyukai keharmonisan di lingkungan

sekitarnya.2. Merasa senang jika dapat menolong orang lain.3. Konservatif dan normatif4. Bagi mereka sangat penting untuk dihargai dan

dinaggap bertanggung-jawab oleh lingkungannya.5. Umumnya sangat percaya diri dan merasa berada pada

jalur yang benar sesuai dengan yang mereka inginkan.6. Tidak menyukai TV dan iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS: “IBU PKK” (THE OPTIMISTIC FAMILY PERSON)

Demografi: Umumnya wanita, rural, usia matang, SES rendah.

Karakteristik:1. Menjalani hidup dengan bersahaja, realistik,

kekeluargaan dan normatif.2. Menyukai memasak sebagai hobi tidak hanya

sebagai satu kewajiban.3. Hidupnya hanya untuk keluarga dan orang di

sekelilingnya.4. Di waktu senggang, melakukan tidur siang,

mengunjungi keluarga, berekreasi bersama keluarga, window shopping dan menyukai iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS: “ANAK NONGKRONG” (THE CHANGE-EXPECTING LAD)

Demografi: Umumnya laki-laki, urban, usia muda, SES rendah.

Karakteristik:1. Hidupnya berorientasi pada teman-teman/kelompok.

Bagi mereka: “All is one and one is all.”2. Menurut mereka, teman adalah segalanya.3. Tidak terlalu optimis akan masa depan mereka

namun mengharapkan perubahan.4. Cukup toleran terhadap seks.5. Suka menonton TV, mendengarkjan musik dan

mengamati iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS: “LEMBUT HATI” (CHEERFUL HUMANIST)

Demografi: Umumnya perempuan, rural, usia muda, SES rendah.

Karakteristik:1. Cenderung tidak suka menjadi pusat perhatian

walaupun diterima di lingkungannya.2. Menyukai lingkungan yang damai dan penuh harmoni.3. Sangat menaruh perhatian dan berempati pada

lingkungan dan orang-orang di sekitarnya.4. Merasa dihargai jika lingkungannya menerima apa

yang mereka lakukan.5. Tidak terlalu suka menonton TV dan memperhatikan

iklan.

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INDONESIAN CONSUMER MARKET SEGMENTS: “PASRAH” (INTROVERT WALLFLOWER)

Demografi: Perempuan, rural, usia matang, SES rendah dan berpendidikan rendah.

Karakteristik:1. Tidak menginginkan banyak hal dalam hidupnya atau

bisa dibilang bukan tipe pemimpin.2. Umumnya introvert, memiliki sedikit teman tapi

sangat loyal.3. Bijaksana, rendah hati dan pekerja keras.4. Tidak terlalu optimis akan masa depan mereka.5. Memasak dan berkebun menjadi hobi mereka, selain

gemar menonton TV, mendengarkan musik dan religius.

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“MAIN UNTUK MENANG” (THE SAVVY CONQUERER/CITY SLICKERS)

Demografi: Umumnya laki-laki, urban (Jakarta A+), usia matang, SES tinggi dan berpendidikan tinggi.

Karakteristik:1. Tujuan hidupnya adalah kejayaan dan kemakmuran.2. Menyenangi kompetisi dan senag dikagumi orang lain.3. Cenderungdominan dalam pergaulan.4. Senang bertindak (man of action), menyenangi

tindakan spontan dan menantang.5. Suka fashion, menikmati makanan, menyukai iklan dan

produk serta pandai berfilosofi.6. Menyukai travelling, penikmat makanan di luar rumah,

menyenangi iklan dan politik.

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“GAUL-GLAM” (THE NETWORKING PLEASURE SEEKER)

Demografi: Umumnya perempuan, urban (Jakarta A+), SES tinggi dan berpendidikan rata-rata.

Karakteristik:1. Sangat memuja materi dan ingin bisa tampil dalam

majalah.2. Kerap tampil di berbagai acara informal untuk

menambah dan membina jaringan/nerworking.3. Bagi mereka, berteman adalah investasi.4. Mereka menunggu terjadinya perubahan di Indonesia.5. Mengikuti setiap perkembangan fashion, menyukai

iklan dan mengamati bidang-bidang lain seperti lingkungan, sejarah dan ilmu-ilmu sosial.

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“BINTANG PANGGUNG” (THE SPONTANEOUS FUN-LOVING)

Demografi: Umumnya laki-laki, urban, usia matang dan SES tinggi.

Karakteristik:1. Suka diperhatikan seperti halnya seorang bintang.2. Suka bergaul, pamer dan menyenangi aktivitas di

luar rumah seperti pesta dan kumpul-kumpul.3. Menyukai hal-hal baru yang sedang menjadi trend

seperti fashion,gadget dan hal-hal baru lain.4. Sangat menikmati hidup.

BEHAVIORAL SEGMENTATIONOCCATION SEGMENTATION. Dividing a market

into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

BENEFIT SEGMENTATION. Dividing a market into groups according to the different benefits that consumers seek from the product.

USER STATUS. Dividing a market into groups of non-users, ex-users, potential users, first-time users, and regular users of a product.

USAGE RATE. Dividing a market into light, medium, and heavy product users.

LOYALITY STATUS. Dividing a market into groups based on consumers’ degree of brand loyalty: switchers, shifting loyalists, split loyalists, and hard-core loyalists.

BUSINESS MARKET SEGMENTATIONMACRO/MICRO SEGMENTATION

PROCESS1. DEMOGRAPHICS2. OPERATING VARIABLES3. PURCHASING APPROACH4. SITUATION FACTORS5. PERSONAL CHARACTERISTICS

BUSINESS MARKET SEGMENTATION

MACRO VARIABLESINDUSTRY CHARACTERISTICS : mining, agriculture,

etc.ORGANIZATIONAL CHARACTERISTICS

DEMOGRAPHICS : e.g. customer’s level of risk taking, desire to innovate, types of supplier relationships, number of suppliers,

SIZE & LOCATION: e.g. business volume, growth record, convenient to transportation, degree of operational decentralization.

ECONOMIC FACTORS: e.g. state of market economy; industry growth rate & cyclicality; customer’s market share, ability & desire to expand.

BUSINESS MARKET SEGMENTATION

MACRO VARIABLES (cont’d)COMPETITIVE FORCES: e.g. number & strength of

competitors, ease of entry into market, ease of penetrating potential customers.

PURCHASING TACTICS: e.g. decision makers & their priorities, centralized or decentralized, major influences on final purchase decision.

END USE MARKETS: e.g. manufacturers of end-products, commercial contractors, wholesalers & retailers, banks & other financial institutions.

PRODUCT APPLICATION: e.g. component in specific end-products, consumer home or recreational usage, resale, etc.

BUSINESS MARKET SEGMENTATION

MICRO VARIABLESORGANIZATIONAL VARIABLES

PURCHASING SITUATION/PHASECUSTOMER EXPERIENCE (or PLC

CONSIDERATIONS)CUSTOMER INTERACTION NEEDSCUSTOMER BENEFITSORGANIZATIONAL CAPABILITIES

BUSINESS MARKET SEGMENTATION

MICRO VARIABLES (Cont’d)PURCHASE SITUATION VARIABLES

INVENTORY REQUIREMENTSPURCHASE IMPORTANCEPURCHASING POLICYPURCHASING CRITERIASTRUCTURE OF THE BUYING CENTER

INDIVIDUAL VARIABLESPERSONAL CHARACTERISTICSPOWER STRUCTURES

REQUIREMENTS for EFFECTIVE SEGMENTATION

MEASURABLE

ACCESSIBLE

SUBSTANTIAL

DIFFERENTIABLE

ACTIONABLE

TARGET MARKETING EVALUATING MARKET SEGMENS

1. SEGMENT SIZE & GROWTH2. SEGMENT STRUCTURAL ATTRACTIVENESS3. COMPANY OBJECTIVE & RESOURCES

SELECTING TARGET MARKET SEGMENTS UNDIFFERENTIATED/MASS MARKETING DIFFERENTIATED MARKETING CONCENTRATED MARKETING MICROMARKETING

LOCAL MARKETINGINDIVIDUAL MARKETING

POSITIONINGPOSITIONING

COMMUNICATION DIFFERENTIATION

IMAGE COMPETITIVE ADVANTAGES

POSITIONING

positioning STATEMENT

process

POSITIONINGDIFFERENTIATION

PRODUCT & SERVICESDISTRIBUTIONPERSONNELIMAGE (EVENTS/SPONSORSHIPS)

COMPETITIVE ADVANTAGE. An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.HOW MANY DIFFERENCES TO PROMOTE?WHICH DIFFERENCES TO PROMOTE?

POSITIONINGCOMPETITVE ADVANTAGE’S CRITERIA IMPORTANT. Delivers a highly valued benefit to

target buyers. DISTINCTIVE. Competitors to not offer the

advantage. SUPERIOR COMMUNICABLE and VISIBLE to buyers. PREEMPTIVE. Competitors cannot easily copy the

advantage. AFFORDABLE. Buyer can afford to pay for the

advantage. PROFITABLE

POSITIONINGPOSITIONING STATEMENT. A statement that

summarizes company or brand positioning – it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference).

“To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. With Mountain Dew, you can stay alert and keep going even when you haven’t been able to get a good night’s sleep.”

VALUE PROPOSITION. The full positioning of a brand – the full mix of benefits upon which it is positioned.

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POSITIONINGPOSITIONING

STATEMENT FOR UPSCALE

AMERICAN FAMILIES, VOLVO IS THE AUTOMOBILE THAT OFFERS THE UTMOST IN SAFETY AND DURABILITY

VALUE PROPOSITION TARGET MARKET:

UPSCALE AMERICAN FAMILIES

BENEFITS OFFERED: SAFETY, DURABILITY

PRICE RANGE: 20% PREMIUM OVER SIMILAR CARS

POSITIONING ISSUES

OVER-POSITIONING when customers have too narrow an understanding of the company, product, or brand.

UNDER-POSITIONING when customers only vague ideas about the company and its products and do not perceive anything distinctive about them.

CONFUSED POSITIONING when frequent changes and contradictory messages confuse customers regarding the positioning of the brand.

DOUBTFUL POSITIONING when the claims made for the product or brand are not regarded as credible by the customer.

(Cravens, D.W. & Piercy, N.F., 2006, Strategic Marketing, New York: McGraw-Hill/Irwin, p.185)