1. Identifying Market Segments and Targets8
Identifying Market Segments and Targets
Marketing Management, 13th ed

2. Chapter Questions
What are the different levels of market segmentation?
How can a company divide a market into segments?
How should a company choose the most attractive target markets?
What are the requirements for effective segmentation?
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3. 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 marketing positioning
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4. Four levels of Micromarketing
Segments: a group of customers who share similar needs and wants
Niches; narrow customer group seeking a distinctive mix of benefits (Avis)
Local Marketing (grassroots marketing); target market is leading to marketing program tailored to the needs and wants of local customers
Individuals; customization
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5. What is a Market Segment?
A market segment consists of a group of customers who share a similar set of needs and wants.
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6. Flexible Marketing Offerings
Naked solution: Product and service elements that all segment members value;
Airline offer economy passengers soft drink & a seat
Discretionary options: Some segment members value options but not all ; but charge for meal ,snakes
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7. Preference Segments
Homogeneous preferences exist when consumers want the same things
Diffused preferences exist when consumers want very different things
Clustered preferences when natural segments from groups with shared preferences emerged.
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8. What is Customerization?
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.
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9. Segmenting Consumer Markets
Geographic : table 8.1
Demographic: table 8.1
Psychographic
Behavioral
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10. Demographic Segmentation
Age and life cycle;
Life stage; single ,married, family,
Gender; male ; female
Income
Generation;
Social class
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11. Behavioral Segmentation
Behavioral Variables
Occasions
Benefits
User Status
Usage Rate
Buyer-Readiness aware
Loyalty Status;
Attitude; positive
Decision Roles
Initiator
Influencer
Decider
Buyer
User
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12. The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage
Aware
Ever tried
Recent trial
Occasional user
Regular user
Most often used
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13. Loyalty Status Hard-core: one brand all time
Split loyals : loyal to two or three brand
Shifting loyals: who shift from one brand to another
Switchers: who show no loyalty to any brand
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14. Figure 8.3 Behavioral Segmentation Breakdown
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15. Segmenting for Business Markets table 8.2
Demographic; type, size and location
Operating variable; technology; capabilities
Purchasing approaches;
Situational factors; quick; specific or size of order
Personal characteristics; similar, taking risk or loyal
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16. Steps in Segmentation Process
Need-based segmentation: group customers based on similarity needs
Segment identification: identify the base of segmentation
Segment attractiveness: growth, competitive intensely
Segment profitability:
Segment positioning
Segment acid test; test the attractiveness of each segment
Market mix strategy; 4ps
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17. Effective Segmentation Criteria
Measurable: size ,purchasing power
Substantial: large & profitable
Accessible: reached
Differentiable: different needs
Actionable: effective program can be formulated
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18. Evaluating Target Market Selection
Single –Segment concentration: Volkswagen
Selective Specialization : PG Crest for women
Product Specialization: Microscopes for Universities laboratories, government and other labs
Market Specialization: serving many needs for particular segment
Full market coverage: Microsoft ; soft ware market
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19. Evaluating Target Market Selection
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20. Evaluating Target Market Selection
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21. Figure 8.4 Patterns of Target Market Selection
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