1. MARKETING MANAGEMENT 12th edition8
Identifying Market
Segments and
Targets
Kotler Keller

2. 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.

3. Ford’s Model T Followed a Mass Market Approach

4. Steps in Market Segmentation, Targeting, and Positioning
1. Identify bases for
segmenting the market
2. Develop segment profiles
Market Targeting
3. Develop measure of
segment attractiveness
4. Select target segments
Market positioning
5. Develop positioning for
target segments
6. Develop a marketing
mix for each segment

5. Four levels of Micromarketing
Segments
Niches
Local areas
Individuals

6. Segment Marketing Targeting a group of customers
who share a similar set of
needs and wants.

7. Figure 8.1 Basic Market Preference Patterns

8. 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.

9. Figure 8.2 Examples of Market Customization

10. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral

11. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class

12. Figure 8.4 The VALS Segmentation System

13. Behavioral Segmentation
Decision Roles
Initiator
Influencer
Decider
Buyer
User
Behavioral Variables
Occasions
Benefits
User Status
Usage Rate
Buyer-Readiness
Loyalty Status
Attitude

14. Figure 8.5 Behavioral Segmentation Breakdown

15. Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal
Characteristics

16. Effective Segmentation Criteria
Size, purchasing power, profiles
of segments can be measured.
Segments can be effectively
reached and served.
Segments are large or profitable enough to serve.
Measurable
Accessible
Substantial
Differential
Actionable
Segments must respond differently to different marketing mix elements & programs.
Effective programs can be designed to attract and serve the segments.

17. Market Targeting Evaluating Market Segments
Segment Size and Growth
Analyze current sales, growth rates and expected profitability for various segments.
Segment Structural Attractiveness
Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers.
Company Objectives and Resources
Company skills & resources needed to succeed in that segment(s).
Look for Competitive Advantages.

18. Market Targeting Market Coverage Strategies
Company
Marketing
Mix
Market
Company
Marketing Mix 1
Segment 1
Company
Marketing Mix 2
Segment 2
A. Undifferentiated Marketing
Company
Marketing Mix 3
Segment 3
Segment 1
Company
Marketing
Mix
Segment 2
B. Differentiated Marketing
Segment 3
C. Concentrated Marketing

19. Figure 8.6 Patterns of Target Market Selection

20. Figure 8.6 Patterns of Target Market Selection

21. Figure 8.6 Patterns of Target Market Selection