Identifying Market Segments and Targets 8 Identifying Market Segments and Targets Marketing Management, 13th ed

Effective Targeting Requires… Identify and profile distinct groups of buyers who differ in their needs and preferences Select one or more market segments to enter Establish and communicate the distinctive benefits of the market offering Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-2

Ford’s Model T Followed a Mass Market Approach Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-3

Four levels of Micromarketing Segments Niches Local areas Individuals Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-4

Niche Marketers Enterprise Rent-A-Car targets the insurance- replacement market Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-5

What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs ad wants. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-6

What is Customerization? Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice. Video icon links to Marriott snippet on offering different brands for specific segments. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-7

Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-8

Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-9

Behavioral Segmentation Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-10

Heavy and Light Users of Common Consumer Products HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94%) 25% 29% 79% 21% Toilet tissue (95%) Shampoo (94%) 75% 25% 17% Paper towels (90%) Cake mix (74%) Cola (67%) 83% 13% 5% 87% 19% Beer (41%) Dog food (30%) Bourbon (20%) 81% 95% Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-11

The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage Aware Ever tried Recent trial Occasional user Regular user Most often used Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-12

Loyalty Status Split loyals Shifting loyals Switchers Hard-core Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-13

Figure 8.3 Behavioral Segmentation Breakdown Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-14

Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-15

Figure 8.4 Patterns of Target Market Selection Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-16

Figure 8.4 Patterns of Target Market Selection Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-17

Figure 8.4 Patterns of Target Market Selection Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-18