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Segmentation, Targeting & Positioning

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Ben Seymour

on 16 April 2014

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Transcript of Segmentation, Targeting & Positioning

Nivea Segments
Segment 1:
Concerned consumers - 'a good tan is not important'
Segment 2:
Sun avoiders - avoid sunbathing and use strong sun protection
Segment 3:
Conscientious sun lovers - adore sunshine and like to use a trustworthy sunscreen
Segment 4:
Careless tanners - not concerned about sun protection
Segment 5:
Naive beauty conscious - like to have a good sun tan and recognise the importance of Sun Protection Factors (Kulkarni, S. 2010)
What is Segmentation, Targeting & Positioning?
After a company has defined its desired market segments, it can enter one or many of these segments
Market Targeting
Modern Example
Dividing a market into distinct groups of buyers with different needs, characteristics or behaviour who might require separate products or marketing mixes.
Segmentation, Targeting & Positioning
Customers have different needs which a company must provide for with various services
To better understand differences in consumer needs
To produce a product suitable for the most profitable market (Tombs & Seamons, 2013)
Positioning is the way the product is defined by consumers on important attributes
How the product stands in relation to its competitors in the eyes of consumers
Delivering more customer value than your competitors
The reason why customers would be willing to pay that little bit extra

Ben Seymour
Rafael Franco
Dean Van Zanen
David Taylor

Nivea - Targeting
The element of market targeting involves evaluating each market segment's attractiveness and suitability and selecting
segments to enter
Targeting Approach Strategies
Positioning Example: Foxtel
Segments: Sports, Movies, Entertainment, “essentials”
Channel packages suited to each segment

5 Keys to Effective Segmentation
1. Measurable

2. Actionable

3. Substantial

4. Accessible

5. Sustainable
Develop Measures of Segment Attractiveness
1. Market size & growth
- right size and growth for their company
2. Segment structural attractiveness
- the segment must be profitable
3. Company objectives and resources
- must be aligned with company objectives and resources
Bases for Segmentation
1. Demographic

2. Behavioural

3. Geographic

4. Psychographic
Nivea Product Comparison
Sun Lotion SPF30+ Protection
High Sun protection factor
More suitable to fairer skinned, sun conscious user
Used by those not overly concerned about getting a tan
Nivea Deep Tanning Oil
Very low sun protection factor
Used to essentially 'bake' the skin and produce a very dark tan
Many young women utilize this product to gain a dark tan

Nivea For Men
Target marketing: Nivea Men – Products specifically for men
Extensive marketing mix with a wide variety of products

Positioning Direction
Aim is to differentiate from competitors
For example: Cheap, low quality vs. Expensive, high quality
Competitive differentiation through focusing on one of the following: Product, service, personnel or image
Cheap, low quality
Expensive, high quality
Competitive Differentiation
: The difference is highly valued by the customers
: The difference is unique to competitors
: Difference is superior to the other ways the customer may obtain the same benefit
: The difference can be marketed to the buyer
: Hard for competitors to replicate the difference
: Buyers can afford to pay for the difference
: The difference will generate more revenue than costs
The Marketing Mix
You want to be selling products to consumers that would actually buy it
Poor marketing mix results in a failure to establish a competitive advantage
Tangible goods need the optimal: price, place, product and promotion
Services require the right: process, physical evidence and people
The Marketing Mix
Let's assume Nivea fails to promote their marketing mix effectively while L'Oreal does a better job of promotion
The result? Customers perceive L'Oreal to have greater value due to more successful marketing and purchase their products
Mix 1.
Mix 2.
3 Types of Marketing
Mass Marketing (One Product)
Product Variety Marketing (Two or more products that are different)
Target Marketing (Identifying segments in the market)
NIVEA Deodorant Pearl and Beauty

Foxtel. (2014). Our Channel Packs. Retrieved April 12, 2014, from Foxtel: http://www.foxtel.com.au/shop/channel-pack/default.htm
Nivea. (2014). Nivea Men - All products. Retrieved April 12, 2014, from Nivea: http://www.niveamen.com.au/products?cid=LOC_products
Tombs, & Seamons. (2013). Foundations of Marketing. Sydney: Pearson.
Kularni, S. (2010). A 'Nivea', Case Study of Segmentation. Retrieved April 2, 2014, from Kulkarni Webs: http://profsamkulka.files.wordpress.com/2007/12/niviecase.pdf

A Three Step Process
1. Segmenting
2. Targeting
3. Positioning

Bases for Segmentation
1. Geographic
2. Demographic
3. Psychographic
4. Behavioural
: To divide a market into distinct groups
: Selecting one or more identified segments in the market to enter
: How the product is marketed to be perceived by consumers in a certain way
1. A seller who produces 2 or more products which have variations in its size, features, styles and quality is an example of which of the following?

a) Mass Marketing
b) Product Variation
c) Target Marketing
2. What does a seller first need to investigate before it chooses a target audience, when using the Target Market method?
3. Match the following 3 products with their intended target market:
4. What is positioning? And what is the purpose of it in marketing?

5. According to our presentation, which of the following is NOT one of the 4 major bases of segmentation?

a) Geographic
b) Demographic
c) Psychographic
d) Sociographic
e) None of the above
Full transcript