Market Segmentation

What Is? The process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix

The Base Geographic Demographic Psychological Psychographic Sociocultural Use Related Segmentation Use Situation Segmentation Benefit Segmentation Hybrid Segmentation

Step in Segmentation Process Needs-Based Segmentation Segment Identification Segment Attractiveness Segment Profitability Segment Positioning Segment “Acid Test” Marketing-Mix Strategy

Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable

Exercise Select a product and brand that you use frequently and list the benefits you receive from using it. Without disclosing your list, ask a fellow student who uses a different brand in this product category to make a similar list for his or her brand. Compare the two lists and identify the implications for using benefit segmentation to market the two brands Does your lifestyle differ significantly from your parent’s lifestyle? If so, how are the two lifestyles different? What factors cause these differences?

Selecting and Evaluating Market Segments Single-Segment Concentration Selective Specialization Product Specialization Market Specialization Full Market Coverage

Additional Consideration Segment-By-Segment Invasion Plans Updating Segmentation Schemes Ethical Choice of Market Targets

Doing In Group Explain and Give an Example of Each Segmentation Visit: www.gap.com http://www.hushpuppies.sg/Indonesia/IHome.html http://www.femina.co.id/main/default.asp http://kompas.co.id/ http://id.blackberry.com/ http://www.pmbs.ac.id/

According to your Group, what is the base of those companies’ segmentation? Do those companies targeting only one segment or more? How those companies positioning their product toward consumers’ mind?

Thank You