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Presented by Zhou Yanfeng Business School, Zhongshan University 1 principles of MARKETING Chapter 7 Market Segmentation, Targeting, and Positioning for Competitive Advantage Presented by Zhou Yanfeng Business School, Zhongshan University 2 Chapter Objectives ? Define the three steps of target marketing ? Identify the major segmentation bases for consumer and business markets ? Explain how to identify attractive market opportunities and choose market strategies ? Explain positioning and its relationship to petitive advantage Presented by Zhou Yanfeng Business School, Zhongshan University 3 Steps in Market Segmentation, Targeting, and Positioning Market segmentation 1. Identify bases for segmenting the market 2. Develop profiles of resulting segments Market targeting 3. Develop measures of segment attractiveness 4. Select the target segment(s) Market positioning 6. Develop marketing mix for each target segment 5. Develop positioning for each target segment Presented by Zhou Yanfeng Business School, Zhongshan University 4 Market Segmentation: Levels of Market Segmentation Mass Marketing Presented by Zhou Yanfeng Business School, Zhongshan University 5 Levels of Market Segmentation: Mass Marketing ? Mass producing, mass distributing and mass promoting the same product in the same way to all consumers ? Largest potential market helps lower costs equalling lower prices or higher margins ? Difficult to access fragmented markets ? Problems in selecting from multiple ad