This document discusses market segmentation, targeting, and positioning. It provides criteria for effective segmentation, including that segments must be measurable, substantial, accessible, differentiable, and actionable. It also describes various market targeting strategies such as undifferentiated marketing, differentiated marketing, concentrated marketing, and micromarketing. Undifferentiated marketing uses one standard offer for the whole market while differentiated marketing designs separate offers for different segments. Concentrated marketing targets a niche market and micromarketing customizes products and marketing for individuals.

1. MARKETING MANAGEMENT
13th
edition
sudiptaa saha, Spring 2015
8
Identifying Market
Segments, Market Targeting
& Market Positioning

2. Effective Segmentation CriteriaEffective Segmentation Criteria
There are many ways to segment the market, but
not all segmentations are effective.
- To be useful, market segments must be:
• Measurable
• Substantial
• Accessible
• Differentiable
• Actionable
8-2

3. Effective Segmentation CriteriaEffective Segmentation Criteria
Measurable
Measurable refers to the fact that the market
size, purchasing power and profiles of the
segments needs to be measured. Certain
segmentation variables are sometimes
difficult to measure.
- If you are taking Demographical factors like
age, education, income, etc. as variables of
segmentation then it needs to be measurable.
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4. Effective Segmentation CriteriaEffective Segmentation Criteria
Substantial
Substantial refers to the fact that the market
segments are large or profitable enough to
serve.
- Some segments have one or few customers but the
marketers can sell huge volume of their products to
these customers.
- For example: Tomato Ketchup goes to different fast
food shops such as Pizza Hut, KFC, Helvetia, etc.
in huge volume rather than individual customers.
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5. Effective Segmentation CriteriaEffective Segmentation Criteria
Accessible
Accessible refers to the fact that the market
segments needs to be effectively reached
and served.
- For example: Like in Cantonment areas,
the businessmen needs to take special permission
from the defense authority to do business, therefore
in order to segment such markets, the marketers
must make special arrangement so that the
segments can be reached and served.
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6. Effective Segmentation CriteriaEffective Segmentation Criteria
Differentiable
Differentiable refers to the fact that the
segments are conceptually distinguishable
(separable from each other) and respond
differently to different marketing mix
elements and programs.
- For example: Married and Unmarried women can
respond differently to different products such as
dress materials, cosmetics, household products,
etc. Again Consumption of Students and
Executives is quiet different.
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7. Effective Segmentation CriteriaEffective Segmentation Criteria
Actionable
Actionable refer to the fact that effective
programs can be designed and implemented
for attracting and serving the segments.
- For example: Cigarette manufacturers cannot
promote their product directly through the different
medias (Television Commercials, Newspaper
Advertisements etc), therefore they have to take
different action to promote their product.
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8. Market Targeting
(Market Coverage Alternatives)Market Coverage Alternatives)
Target marketing is the process of evaluating
each market segment’s attractiveness and
selecting one or more segments to enter.
- Characteristics for targeting effective segment:
Segment size and growth
Segment structural attractiveness
Company objectives and resources
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9. Market Targeting
(Market Coverage Alternatives)Market Coverage Alternatives)
Target Marketing Strategies
8-9

10. Market Targeting
(Market Coverage Alternatives)Market Coverage Alternatives)
Undifferentiated marketing targets the
whole market with one standard offer.
- And it’s characteristics are;
• Mass marketing
• Focuses on common needs (basic buyer
need) rather than what’s different
• Relying on mass production, distribution
and communication
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11. Market Targeting
(Market Coverage Alternatives)Market Coverage Alternatives)
Differentiated marketing targets several
different market segments and designs
separate offers for each segment.
- And it’s characteristics are;
• Goal is to achieve higher sales and stronger
position in the market within the segments
• Developing separate marketing mix (product, price,
place & promotion) strategies for each segment
• More expensive than undifferentiated marketing
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12. Market Targeting
(Market Coverage Alternatives)Market Coverage Alternatives)
Concentrated marketing targets a small
share (niche: narrowly defined market) of a
large market those who deals with specific
needs and problems.
• Expertise about the product or services
• Have proper knowledge of the market
• Use more effective and efficient marketing
tools to attract the customers
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13. Market Targeting
(Market Coverage Alternatives)Market Coverage Alternatives)
Micromarketing is the practice of
tailoring (customizing) products and
marketing programs to suit the tastes
of specific individuals and locations.
- And the types are:
• Local marketing (HSBC, Amanah bank
account) for Bangladesh market
• Individual marketing (Tailor’s shop)
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14. Market Targeting
(Market Coverage Alternatives)Market Coverage Alternatives)
A
UNDIFFERENTIATED
MARKETING
Company Marketing Mix
1
Market
B
DIFFERENTIATED
MARKETING
Company Marketing Mix 1
Company Marketing Mix 2
Company Marketing Mix 3
Segment 1
Segment 2
Segment 3
C
CONCENTRATED
MARKETING
Company Marketing Mix
1
Segment 1
Segment 2
Segment 3
8-14

15. END of CHAPTER - 8