Chapter Five Market Segmentation and Segmentation Strategies

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-2 Market Segmentation and Segmentation Strategies Needs based market segmentation Customer needs Segmentation strategies Customer relationship marketing

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-3 Needs-Based Market Segmentation Figure 5-1 Needs-Based Market Segmentation

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-4 Customer Needs and Market Segmentation What is a market segment? (p173) Why is market segmentation important? (p171) How are markets segmented? (p177 & 178) Figure 5-5 Forces that Shape Differences in Consumer Needs

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-5 Business Needs and Market Segmentation Figure 5-7 Forces that Shape Differences in B2B Customer Needs

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-6 Market Segmentation Figure 5-8 Market Segmentation of the Small Business Market

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-7 Needs-Based Market Segmentation (Fig5-9)

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-8 Needs-Based Segmentation and Segment Identification (Fig 5-10) Why Should Segments be Identified?

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-9 Segment Attractiveness What Makes a Segment Attractive? Figure 5-11 Forces that Shape Segment Attractiveness

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-10 Segment Profitability Marketing = NMC ROS Segment Sales Revenues Marketing = NMC ROI Segment M&S Expenses = X X X - NMC Segment Segment Price Per Percent Marketing Demand Share Unit Margin Expenses

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-11 Segment Market Profitability Figure 5-13 Segment Market Profitability

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-12 Segment Positioning How does segment positioning simplify promotional efforts? (p185) How does a firm determine if its segmentation strategy is meaningful? (p185) What is meant by Segment Strategy Acid Test? (p185) What is the importance of the marketing mix in the segmentation strategy? (p186)

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-13 Segmentation Strategies Figure 5-16 Market Segmentation Strategies

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-14 Segmentation Strategies Figure 5-17 Toyota’s Adjacent Segmentation Strategy

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-15 Customer Relationship Marketing Figure 5-21 Customer Relationship Marketing Strategies

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-16 Customer Relationship Management How does a firm justify the use of CRM? (P 197) CRM vs. Needs-Based Market Segmentation (see Fig 5-22) Four Critical Steps in Developing CRM Programs (p198)

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-17 Review Needs based market segmentation Customer needs Segmentation strategies Customer relationship marketing

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5-18 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall