8-1 MARKETING MANAGEMENT 8 Identifying Market Segments and Targets

8-2 Chapter Questions What are the different levels of market segmentation? How can a company divide a market into segments? How should a company choose the most attractive target markets? What are the requirements for effective segmentation?

8-3 Mature consumers are a rapidly growing market

8-4 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.

8-5 A Mass Market Approach

8-6 General Motors Alfred P. Sloan “A car for every purse and purpose”A car for every purse and purpose Cadillac Oldsmobile Pontiac Buick Chevrolet

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8-13 Mercedes

8-14 Volvo

8-15 Volvo

8-16 Four levels of Micromarketing Segments Local areasIndividuals Niches

8-17 Basic Market Preference Patterns

8-18 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.

8-19 Segmenting Consumer Markets Geographic Demographic Psychographic Behavioural

8-20 Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class

8-21 Toyota Scion targets Gen Y consumers

8-22 Loyalty Status Switchers Shifting loyals Split loyals Hard-core

8-23 The Conversion Model ConvertibleShallowAverageEntrenched Strongly unavailable AmbivalentAvailable Weakly unavailable Users Nonusers

8-24 Models of Sequential Segmentation Stage of decision First-time prospects Novices Sophisticates Orientation Price-oriented Solution-oriented Strategic-value

8-25 Patterns of Target Market Selection

8-26 Patterns of Target Market Selection

8-27 Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable

8-28 Segment-by-Segment Invasion Plan

8-29 Pepsi in India

8-30 Marketing Discussion How would you classify yourself in terms of the various segmentation schemes?