Chapter 9 – Segmentation, Targeting, and Positioning Marketing 6th
LO9-3 Articulate the differences among targeting strategies: undifferentiated, differentiated,
concentrated, or micromarketing.
Firms use a targeting strategy after they have identified its segments. An undifferentiated strategy uses no
targeting at all and works only for products or services that most consumers consider to be commodities.
The difference between a differentiated and a concentrated strategy is that the differentiated approach
LO9-4 Determine the value proposition.
A firm’s value proposition communicates the customer benefits to be received from a product or service
and thereby provides reasons for wanting to purchase it. It consists of the attributes of a product or
LO9-5 Define positioning, and describe how firms do it.
Positioning is the P in the STP (segmentation, targeting, and positioning) process. It refers to how
customers think about a product, service, or brand in the market relative to competitors’ offerings. Firms
position their products and services according to several criteria. Some focus on their offering’s value—
customers get a lot for what the product or service costs. Others determine the most important attributes
Extended Chapter Outline with Teaching Tips
I. The Segmentation, Targeting, Positioning Process
A. Step 1: Establish the Overall Strategy or Objectives
B. Step 2: Use Segmentation Methods
1. Geographic Segmentation
2. Demographic Segmentation
3. Psychographic Segmentation
4. Benefit Segmentation
5. Behavioral Segmentation
a. Occasion
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