1. 8-1 MARKETING MANAGEMENT 8 Identifying Market Segments and Targets

2. 8-2 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?

3. 8-3 Mature consumers are a rapidly growing market

4. 8-4 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.

5. 8-5 A Mass Market Approach

6. 8-6 General Motors Alfred P. Sloan “A car for every purse and purpose”A car for every purse and purpose Cadillac Oldsmobile Pontiac Buick Chevrolet

7. 8-7

8. 8-8

9. 8-9

10. 8-10

11. 8-11

12. 8-12

13. 8-13 Mercedes

14. 8-14 Volvo

15. 8-15 Volvo

16. 8-16 Four levels of Micromarketing Segments Local areasIndividuals Niches

17. 8-17 Basic Market Preference Patterns

18. 8-18 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.

19. 8-19 Segmenting Consumer Markets Geographic Demographic Psychographic Behavioural

20. 8-20 Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class

21. 8-21 Toyota Scion targets Gen Y consumers

22. 8-22 Loyalty Status Switchers Shifting loyals Split loyals Hard-core

23. 8-23 The Conversion Model ConvertibleShallowAverageEntrenched Strongly unavailable AmbivalentAvailable Weakly unavailable Users Nonusers

24. 8-24 Models of Sequential Segmentation Stage of decision First-time prospects Novices Sophisticates Orientation Price-oriented Solution-oriented Strategic-value

25. 8-25 Patterns of Target Market Selection

26. 8-26 Patterns of Target Market Selection

27. 8-27 Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable

28. 8-28 Segment-by-Segment Invasion Plan

29. 8-29 Pepsi in India

30. 8-30 Marketing Discussion How would you classify yourself in terms of the various segmentation schemes?