Main Activity

You are tasked to search for ten (10) deserving

families for Government Livelihood Program in your
Barangay this year.
1. Who are qualified to be part of this livelihood
program?
2. Why you choose these ten (10) families among
the whole population?
3. How will you know that these ten really worthy for
this livelihood?
4. Where can you easily locate them for progress
monitoring?
ABSTRACTION
LESSON 7:

Market
Segm e n t a t i on ,
Target Ma rk e t a n d
Pos i ti o n i n g
Market Segmentation
Market Segmentation
- is the process of dividing a
target market into smaller, more
defined categories. It segments
customers and audiences into
groups that share similar
characteristics such as
demographics, interests, needs, or
location.
Eight Benefits of
Market Segmentation
 The importance of market
segmentation is that it makes it
easier to focus marketing efforts and
resources on reaching the most
valuable audiences and achieving
business goals.
 Market segmentation allows you
to get to know your customers,
identify what is needed in your market
segment, and determine how you can
best meet those needs with your
product or service. This helps you
design and execute better marketing
strategies from top to bottom.
Eight Benefits of
Market Segmentation
1. Create stronger marketing
messages
2. Identify the most effective
marketing tactics
3. Design hyper-targeted ads
4. Attract (and convert) quality leads
Eight Benefits of
Market Segmentation
5. Differentiate your brand from
competitors
6. Build deeper customer affinity
7. Identify niche market
opportunities
8. Stay focused
The Four Types of
Market Segmentation
The four bases of market
segmentation are:
1. Demographic segmentation
2. Psychographic segmentation
3. Behavioral segmentation
4. Geographic segmentation
Demographic
Segmentation
- is one of the most popular and
commonly used types of market
segmentation. It refers to statistical
data about a group of people.
Demographic Market
Segmentation Examples
• Age • Annual Income
• Gender • Education
• Income • Ethnicity
• Location
• Family Situation
Psychographic
Segmentation
- categorizes audiences and
customers by factors that relate to
their personalities and
characteristics.
Demographic Market Segmentation
Examples
• Personality traits • Subconscious and
• Values conscious beliefs
• Attitudes • Motivations
• Interests • Priorities
• Lifestyles
•Psychological
influences
Behavioral
Segmentation
- focuses on how the customer
acts.
Behavioral Market Segmentation
Examples
• Purchasing habits
• Spending habits
• User status
• Brand interactions
Geographic
Segmentation
- is the simplest type of market
segmentation. It categorizes
customers based on geographic
borders.
Geographic Market Segmentation
Examples
• ZIP code
• City
• Country
• Radius around a certain location
• Climate
• Urban or rural
How to Create a Market
Segmentation Strategy
 Now, you know what market
segmentation is, why it’s important, and
the four types of market segmentation.
It’s time to put this information into
practice. Use the following market
segmentation process to learn about
your customer and find new marketing
and product opportunities.
1. Analyze your existing customers

• Interview your customers.

• Interview your sales team.
• Refer to your business data.
• Use your website analytics.
• Research audience geography.
2. Create a buyer persona for your
ideal customer
3. Identify market segment
opportunities.
4. Research your potential segment.
5. Test and iterate
Market
Segmentation Best
Practices
 Market segmentation is a two-
step process of: naming broad
product markets, and segmenting
those markets in order to select
target markets.
1. Defining Generic and Product
Markets.
A generic market is a market of
customers with generally similar needs,
which organizations satisfy in a variety of
ways.
An example of a generic market would
be the transportation market for a city;
buses, trains, cars, bicycles, and walking,
are all methods of getting around town.
1. Defining Generic and Product
Markets.
A product market is a market of
customers with very similar needs.
An example of a product market
would be for laptop computers,
where customers have the choice
between products from Microsoft,
Dell, Apple, Fujitsu, etc.
1. Defining Generic and Product
Markets.
When defining your product
market, there are four important
aspects:
What - Product Type
To Meet - Customer Needs
Who - Customer Segments
Where - Geographic Region
2. Understand Common Market
Segment Dimensions.
There are common market
segment dimensions for consumer
and B2B markets. Following are two
lists containing sample dimensions
that can be used to slice and dice
your consumer or B2B product
markets.
B2C Segmentation Criteria
Demographic:
● Age ● Gender
● Income ●Geographic
● Marital Location
● Status ● Social Status
● Education ● Occupation
● Family Size
B2C Segmentation Criteria
Psychographic: Sources
● Brand Preferences
● Price Sensitivity ● Service Preferences
● ● Buy Based on
Conservative/Liberal Trends
● Enviro-Friendly ● Spontaneity
● Hobbies ● Influenced by Peers
● Lifestyle ●Relationship
Importance
● Information
B2C Segmentation Criteria
Behavioral:
● Purchase History
● Where They Shop
● Type of Store Preferences
● Association Memberships
● Internet Usage
● Impulsiveness
B2C Segmentation Criteria
Environmental:
● Country of Residence
● Political Climate
● Currency
● Payment Methods
● Shipping & Receiving
● Languages Spoken
B2B Segmentation Criteria
Demographic: ● Markets Served
● Annual Revenue
●Products
● # Employees /Services
● Industry ● Job Title
● # Locations ●Level of
●Years in BusinessExperience/
Seniority
B2B Segmentation Criteria
Psychographic:
● Resistance to Change ● Professionalism
●Diversification Oriented ● Require Referrals
● Open Minded/Rigid ●Awareness of
Competitors
●Decision Making
Process ● Risk Aversion
● Early Adopter/Follower ● Loyalty
● Growth Oriented/Static ● Market
Focused/Product Focused
●Technology
Sophistication
B2B Segmentation Criteria
Behavioral:
● Website Visits
● Responses to Marketing
● Purchasing Methods
● Association Memberships
● Internet Usage
● Social Media Groups
● Collateral Views/Downloads
B2B Segmentation Criteria
Environmental:
● Technology Landscape
● Purchasing Power
● Management Practices
● Purchasing Process
● Business Culture
3. Group Customers into
Homogeneous Micro Segments.

In this stage of the

segmentation process, your goal is
the find customers who have similar
needs that will respond to a
marketing mix in a predictable
manner.
4 criteria that strong market segments
have in common:

A. Homogeneous
- customers in a market
segment should be very similar in
both their segment dimensions and
their likely response to a marketing
mix.
4 criteria that strong market segments
have in common:

B. Heterogeneous
- customers in different market
segments should be as divergent as
possible with other segments.
4 criteria that strong market segments
have in common:

C. Economic Upside
- the segment needs to be large
enough, or predicted to grow
sufficiently, to be profitable.
4 criteria that strong market segments
have in common:

D. Operational
- the segment dimensions
should be helpful for understanding
& identifying customers and making
decisions regarding the marketing
mix.
Target Marketing
5 criteria that indicate whether you
have selected a viable target market:

A. Size
- how large is this target
market? Worth pursuing?
5 criteria that indicate whether you
have selected a viable target market:

B. Expected Growth
- even if the market is small, it
may be profitable if there are
indications that it will grow.
5 criteria that indicate whether you
have selected a viable target market:

C. Competitive Position
- low competition equals
attractive market.
5 criteria that indicate whether you
have selected a viable target market:

D. Cost to Reach
- is this market accessible with
our tactics?
5 criteria that indicate whether you
have selected a viable target market:

E. Compatibility
- how aligned is this market to
our goals?
Positioning
Positioning
- means developing a theme
which will provide a “meaningful
distinction for customers”.
Competitors have three
possible positioning
strategies:
1. The firm may choose to
strengthen its current leadership
position by reinforcing the
original concepts that led to the
first position in the mind of the
customer.
Competitors have three
possible positioning
strategies:
2. The firm might establish a new
position – “cherchez le
creneaux” – looking for new
openings in a market.
3. The firm might try to de-position
or re-position the competition.
Three positioning value
disciplines
1. Operational excellence
2. Customer intimacy
3. Product leadership
Re-Positioning
Re-Positioning
- If a current position has been
rendered useless by competitor
pressure or customer indifference or
because the results are
disappointing, new positioning is
necessary.
Four-step process for
reassessing a positioning
theme:
1. Identify alternative positioning
themes.
Four-step process for reassessing
a positioning theme:
2. Screen each alternative according to
whether it is:
Meaningful to customers;
Feasible given the firm’s competencies
and customer perceptions of the firm;
Superior/unique vs. competition;
difficult for them to match;
Congruent with company objectives
Four-step process for reassessing
a positioning theme:
3. Choose the position that best
satisfies the criteria, and generates
the most enthusiasm and
commitment within the organization.
4. Design the programs needed to
implement the position. Compare
costs of these programs with likely
benefits.
APPLICATION
On your activity notebook answer these questions briefly.
1. What are the different variables in market
segmentation? Give examples of how each variable
can be used in the effective division of markets.
2. What is the importance of having a target market for a
product or a service?
3. In your own opinion, what are some of the reasons
why positioning is an important tool for competitive
advantage?
4. How can a brand be successfully positioned for
consumers of several target markets? Explain your
answer.
EVALUATION
 Classify the following which type
of market segmentation it belongs.
Answer Demographic segmentation,
Psychographic segmentation,
Behavioral segmentation, Geographic
segmentation and write your answer
on a separate sheet of paper.
1. Age 9. Ethnicity
2. Income 10.Climate
3. Personality traits 11. Gender
4. Attitudes 12. Location
5. Purchasing habits 13. Values
6. ZIP code 14. Interests
7. City 15. Spending habits
8. Country
ASSIGNMENT
Direction: Choose a specific brand
from one of the following types of
products below and identify how this
brand undergoes the process of
market segmentation. Submit your
answer in our google classroom. You
will be graded based on the given
rubrics.
• Beauty and hygiene
• Office needs
• Food and beverages
REFLECTION
Make a journal to manifest your
understanding about the topic. You
can have it post in our google
classroom.
Prepared by:
Ma'am Charlene Ann B. Pera