8-1 MARKETING MANAGEMENT Market Segments and Targets

8-2 Chapter Questions How can markets be segmented? How can a company best 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 A Mass Market Approach

8-5 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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8-12 Mercedes

8-13 Volvo

8-14 Volvo

8-15 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.

8-16 Basic Market Preference Patterns

8-17 Segmenting Consumer Markets Geographic Demographic Psychographic Behavioural

8-18 Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class

8-19 Toyota Scion targets Gen Y consumers

8-20 Patterns of Target Market Selection

8-21 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.

8-22 Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable

8-23 Marketing Discussion 1.When does it make sense to “fire your customer?