Chapter 3 Marketing Segmentation

What is Marketing Segmentation? Who uses market segmentation? How does market segmentation operate?

Market Segmentation The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.

Mass Marketing Offering the same product and marketing mix to all consumers.

Positioning Establishing a specific image for a brand in relation to competing brands.

Bases for Segmentation Geographic Segmentation Demographic Segmentation Psychological Segmentation Psychographic Segmentation Sociocultural Segmentation Use-Related Segmentation Usage-Situation Segmentation Benefit Segmentation Hybrid Segmentation Approaches

AIOs Psychographic variables that focus on activities, interests, and opinions. Also referred to as Lifestyle.

Hybrid Segmentation Approaches Psychographic-Demographic Profiles Geodemographic Segmentation SRI Consulting’s Values and Lifestyle System (VALS TM )

Criteria For Effective Targeting of Market Segments Identification Sufficiency Stability Accessibility

Implementing Segmentation Strategies Concentrated Versus Differentiated Marketing Countersegmentation

Counterseg- mentation Strategy A strategy in which a company combines two or more segments into a single segment to be targeted with an individually tailored product or promotion campaign.