1. MARKETING MANAGEMENT Stephen J. Miller Oklahoma State University MKTG 5133-MG 720 Lecture 9

2. Market Segmentation

3. 3 Vision of the Market Mass – Serve all users uniformly Segmented – Consider subsets as unique Individual – Focus separately on each buying unit.

4. 4 Market Segmentation The act of identifying distinct group of buyers for which to potentially design separate marketing mixes.

5. 5 Purpose of Segmentation Efficiency Effectiveness To better focus on customer needs

6. 6 Danger of Segmentation Loss of Economies of Scale Loss of Consistency in Delivery

7. 7 Research Variables in Segmentation Research Buyer Characteristics – demographics, socio-economics, etc. Buyer Preferences and Behaviors – usage, brand/model choice, etc Buying Process – media habits, store preferences, etc.

8. 8 Typical Consumer Characteristics Geography Demographics Socio-Economic Social class/values Personality Life Style

9. 9 Typical B2B Characteristics Industry Application Size Geography

10. 10 Buyer Preferences/Behaviors Usage Levels Brand/Model Preference Needs/Benefits Sought Buying State

11. 11 Research Methods to Identify Market Segments Preferences/behavior=f(buyer traits) Buyer traits=f(preferences/behaviors) Buying process descriptors for preference and traits

12. 12 Choosing Traits By Which to Segment Markets Degree of Response Differences Measurability Size of Segment Accessibility

13. 13 Selecting Market Segments to Target Segment attractiveness Segment profitability Segment match to corporate capabilities-differential advantage

14. 14 Target Market Options Mass Market Single Segment Selected Segments(by market or by product) Full Market Coverage

15. 15 Marketing Strategy Options to Serve Segments Products Price Promotion Channels

16. Differentiation/Positioning

17. 17 Positioning The act of designing the company's offering and image to occupy a distinctive place in the target markets’ mind.

18. 18 Differentiation The act of designing a set of meaningful differences to distinguish the company’s offering from competitors’ offerings.

19. 19 Differentiation Options Product Services Personnel Image

20. Your Questions ???????????????????