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

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
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3. Ford’s Model T Followed a Mass Market Approach
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4. Four levels of Micromarketing
Segments
Niches
Local areas
Individuals
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5. Niche Marketers Enterprise Rent-A-Car targets the insurance-
replacement market
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6. What is a Market Segment?
A market segment consists of a group of customers who share a similar set of needs ad wants.
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7. 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.
Video icon links to Marriott snippet on offering different brands for specific segments.
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8. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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9. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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10. Behavioral Segmentation
Decision Roles
Initiator
Influencer
Decider
Buyer
User
Behavioral Variables
Occasions
Benefits
User Status
Usage Rate
Buyer-Readiness
Loyalty Status
Attitude
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11. Heavy and Light Users of Common Consumer Products
HEAVY HALF
LIGHT HALF
PRODUCT (% USERS)
75%
71%
Soups and
detergents (94%)
25%
29%
79%
21%
Toilet tissue (95%)
Shampoo (94%)
75%
25%
17%
Paper towels (90%)
Cake mix (74%)
Cola (67%)
83%
13% 5%
87%
19%
Beer (41%)
Dog food (30%)
Bourbon (20%)
81%
95%
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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 Split loyals Shifting loyals Switchers Hard-core
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14. Figure 8.3 Behavioral Segmentation Breakdown
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15. Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
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16. Figure 8.4 Patterns of Target Market Selection
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17. Figure 8.4 Patterns of Target Market Selection
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18. Figure 8.4 Patterns of Target Market Selection
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